Automobile Insurance

Owning an automobile –a luxury some years ago – is today considered a necessity.  Whether for commuting to work, running errands or traveling, one’s own automobile is the first preference for many people.

Having an automobile has its share of risks of course.  Drive your automobile, and there are chances of an accident.  Park it while going shopping and it may be stolen or vandalized.  Rain and snow, fire could damage your automobile.

However automobileeful you are, you may encounter any of the above mentioned problems at some point of time.  You have to equip yourself to face this kind of situation by taking suitable automobile insurance also known as vehicle insurance, automobile insurance or motor insurance.

Why do you need Automobile Insurance?

From a legal point of view, you need automobile insurance as it is compulsory in many countries and it would be illegal to drive without insuring your automobile.  Depending on the law of the country, punishment may be light and you may get away with a fine.  In some countries, you may be awarded a more serious punishment – your automobile may be impounded and you may even lose your license!

Beyond the legal requirement, as the owner of a automobile, you need protection against injury to yourself or damage to your automobile.  You also need to be prepared to meet liabilities arising from injuring others or damaging another automobile.  Additionally, your automobile finance company may insist that you take certain kinds of automobile insurance coverage.

Affordable Automobile Insurance

Buying a automobile is quite expensive.  With spiraling gasoline prices, operating the automobile is also a costly affair.  Repair and maintenance costs are on the higher side as well.  In addition, if the automobile insurance you take is also expensive, it will surely pinch you.  You cannot even avoid this expense as automobile insurance is mandatory and even if it is not, you will be only putting yourself at risk by not taking it.  So you need to look for affordable automobile insurance.

  • You can do some research online to find automobile insurance rates of different companies and choose one with competitive premium rates

or

  • You can discuss the various kinds of coverage offered and their rates with an automobile insurance agent and choose a policy which is suitable as well as affordable.

Automobile Insurance Coverage

There are various kinds of coverage provided by automobile insurance companies.  The type of coverage you take will play a major role in determining the premium.

  • Bodily injury liability coverage: This gives you protection from liability arising from injuries you cause to others in the course of driving.
  • Property damage liability coverage: When you opt for this coverage, automobile insurance companies compensate you for liability arising from any damage caused to the property of others.
  • Medical payments coverage: This automobile insurance coverage will ensure that medical bills arising from injury to you or other occupants of the automobile in an accident are met.
  • Personal injury protection coverage: This compensates you for injury caused to you even if you were not driving.
  • Uninsured and underinsured motorists coverage: If you take this automobile insurance coverage, you will be compensated for personal injury or automobile damage caused by any uninsured or underinsured vehicle.
  • Collision Coverage: This will ensure that you are compensated for damage caused to your automobile due to collision with another vehicle.
  • Comprehensive Coverage: This will compensate you for damage caused to your automobile due to any reason other than collision.

Basis for charging Automobile Insurance Premium

The premium you will be charged by the automobile insurance company will depend on the following:

  • Characteristics of the automobile
  • Kind of coverage selected
  • Profile of the driver
  • Usage of the automobile

Automobile insurance is very beneficial to you, a fact you may not appreciate much when taking it. But you would surely realize its importance when a problem like an accident arises.

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