What is car insurance – What is car insurance? Simply answered, it is when we insure our car in a certain insurance company. The legal document is a kind of contract that is signed between us as the policyholder and insurance company as the insurer. The contract is stated to give protection against financial loss when we have a car accident in the future. As the obligation, policyholders pay insurance premiums as the form of agreement of the insurance company to pay for losses covered in the insurance policy.
That is a brief explanation about car insurance. It has become mandatory for each driver to carry car insurance while driving on the road. That’s why insurance market becomes competitive.
When it comes to buying insurance policy, basing this information is not enough to get the best policy. IF we are first time drivers, we need to understand what car insurance covers and what to do to get insurance policy.
What Car Insurance Cover ?
It is a sensible question regarding with “What is car insurance?” If we are protected, what does car insurance covers? Well, there are several types of coverage. Here are the details.
When we have an accident, we have to pay for medical expenses and lose our wages for someone that is injured. If there is a lawsuit, legal expenses will be costly. Bodily injury liability covers all of those things.
To cover car repair of other persons in car accident, we have property damage coverage and to cover medical bills for us and passengers per accident, we have personal injury protection.
Those three types of coverage are mandatory for all drivers. That is why they are called the minimum requirements. Carrying them has made us legal. However, each state has different minimum requirement.
States with large cities usually have higher requirement due to the high risk of getting an accident. That is the primary reason why car insurance is varied even the cheapest one.
So, what is car insurance actually? Is it just about minimum requirement? What makes insurance cost differ one another? It is because; we need more than legal driving, but protection. The fact that medical bills become so expensive these days, minimum requirement is not enough.
Car insurance then becomes expensive, especially if we also carry comprehensive coverage. It covers anything that is not related to accident such as vandalism, disaster, fire, etc. We can also have collision coverage that covers our car repair in case we have an accident.
What to Do to Get Car Insurance ?
Assume that we already know “What is car insurance?” we can begin the next step, purchasing auto insurance. Since car insurance becomes increasingly expensive these days, we have to be smart in choosing the right policy from reputable insurance company.
A lot of companies want to have business with us. That is our advantage since we have a lot of options. To ensure we make a good decision, we request quotes from multiple different companies. Get at least 5 quotes, and compare them. We have to only focus on policy that suits to our need and budget.
We can do something to have lower quotes that will affect to our insurance premiums. Regarding with “What is car insurance?” question to get lower premiums, our car will be considered by insurance premiums.
One of the affecting elements is driving record. This is the first thing that affects our insurance premium. We should have good driving record so we have to continuously obey the traffic regulations and avoid car accidents for certain period of time.
Then, low mileage, being 25 years old, low value car, low-risk cars and safety devices will also determine how our insurance premiums will be.
That is a short brief around “What is car insurance?” More information might be needed when we are in the market. Calling an agent is a good solution to help us gaining more understanding about car insurance.