We are all familiar with the benefits of insurance cover and generally have our personal belongings like houses and other valuables insured against theft or other damage. Having insurance coverage protects our interests largely and in the event of losing or damaging our property, it is possible to claim a considerable part of the value of the property.
Auto insurance too more or less follows the same procedure. When you buy a car or any other vehicle, it is imperative that you take out insurance cover so that it can take care of any damages arising from accidents or theft of the car or even compensate you to a large extent in the case of a third party claim. Auto insurance can cover a variety of aspects related to the car according to the type of insurance that has been selected.
Auto insurance is considered mandatory by almost all countries when you purchase a car and involves paying a specific premium to the company which provides the insurance. The rate of premium to be paid depends on various factors. It can be gender specific or age specific. For example, men need to pay more in terms of insurance premiums than women since they are more likely to be involved in accidents and hence require more insurance cover. Teen drivers too fall into the high risk category and hence need to shell out a higher rate of premium unless they have taken a defensive driving course that may reduce the premium in certain cases.
Another factor which determines the premium to be paid with regard to auto insurance are excesses and deductibles. Before signing up for the auto insurance, the owners have to decide if they would like to deduct certain areas of protection from their insurance. The higher the deductibles the lesser amount they will have to pay as premium. But the higher the deductibles, the lower will be your safety cover too and if in the case of any contingency arising, you may have to risk of paying money from your pocket to cover the excess.
Unlike other types of insurance which are quite rigid in its requirements, auto insurance policies are considered pretty flexible due to the fact that you can customize it according to your need. You do not have to take a full cover policy which will be much more expensive. You can instead decide on the specific points for which coverage is required and if in the case of any damages, you can only make a claim if your insurance covers those aspects.
There are various types of auto insurance like liability auto insurance, collision auto insurance, comprehensive auto insurance, etc. Liability auto insurance could be the minimum requirement in the case of paid for vehicle, while collision auto insurance covers the cost of repairs undertaken when the vehicle has met with an accident. Comprehensive auto insurance is the best one possible because it takes care of repair work and fees concerned in the case of accidents even when there is no collision involved.