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Car And Insurance | NowAutoInsurance.com

Understanding Car Insurance

April 7th, 2008

understanding car insurance

Living anywhere in the United States would mean that getting a car insurance policy should be one of your top concerns. It remains to be a legal requirement, and if you get caught violating even the most minor traffic regulation without carrying an insurance protection, you could face a suspension of driving license or a possible jail term whether you are at fault or not. Car and insurance are two words that go hand in hand – one just cannot do without the other.

Understanding car insurance is not exactly difficult. All it takes is a bit of time and a lot of sensibility. The basics in any car insurance premium are generally similar. If you are a first time car insurance buyer, the premium is relatively higher than that of someone who has previous insurance records. You will be asked for a deductible amount, or the amount in excess of the premium, which is the amount that you will have to pay before the insurance company pays your coverage. If you have a high deductible, then it follows that your car insurance premium will be low.

Car insurance companies measure your credit standing to determine your financial capacity. Your credit score will be one of the factors considered by the car insurance company when you apply for an insurance policy. Your insurance score can be improved by paying your credit card bills and government taxes on time. Your driving records will also serve as another measuring tool – if your driving history is spotless, then this will be another plus point for you.

Now here’s the most important part: research about the car insurance company before purchasing any policy. If the car insurance company has the right to do a background check on you, you also have equally the same right to do a background check on them. In understanding car insurance, you will also have to know the importance of a car insurance company’s history and track record to make sure that you will get fully covered, should any mishap occur.

A basic car insurance policy should have the following:

  • Comprehensive coverage
  • Collision coverage
  • Personal injury protection
  • Medical coverage

When making a car insurance claim, this will immediately include the cost of repairs on the damaged vehicle and medical expenses incurred by treatment of injuries sustained following the accident. These first two reasons are enough to get you started in understanding car insurance and why it is very important for you to get a policy. Now you also know why the words car and insurance always go together – getting a new car simultaneously means getting car insurance!

Apply for a policy today! The next life you save may be your own.

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