Auto Insurance – The First step For Car Owners
Since people tend to buy new cars, teens and adults tends to go to a bunch of parties getting zoned with alcoholic drinks and beverages. It is a very fun experience for many but the problem lies on the time that they would have to leave the venue and drive their cars. While some prefers staying at the venue for the night, others do not feel comfortable sleeping at other's place so they insist of going and driving home even though they are under the influence of alcohol.
Although no one is promoting or advertising the idea, it is a fact that such incident is unstoppable and do occur on numerous occasions. The first issue or concern if such occasion arises is the health of the driver and his passengers, if there is. The number of deaths caused by car accidents increases during holidays and it is apparent that the reason is drunk driving. Sadly, even innocent people are getting caught up with accidents caused by the irresponsibility of others. What is very frightening is the fact that those who drive under the influence of alcohol can affect a lot of lives by recklessly roaming the streets with their vehicles while alcohol is eating up their consciousness. They tend to ram cars which are parked nicely on the side of the road causing its owners to lose their car that they have worked so hard to avail.
That is why it is highly advisable to make sure that the vehicles that everyone owns are secured and insured. Availing an auto insurance could save vehicle owners from losing their car out of others irresponsibility. It would give vehicle owners the peace of mind that a company would help them recover from a major loss if they got caught up with an accident or their car became a victim of others fault.
Getting insurance is not hard either. There are tons of companies that offer auto insurance for most vehicle types and these companies even provide an online application for vehicle owners so they would not have to visit the company's offices just to subscribe for their services. Insurance agents are also scattered on public places who jumps to people that crosses their path, inviting them to avail the insurance offered by their company.
Coverage levels
Vehicle insurance can cover some or all of the following items:
- The insured party (medical payments)
- The insured vehicle (physical damage)
- Third parties (car and people, property damage and bodily injury)
- Third party, fire and theft
- In some jurisdictions coverage for injuries to persons riding in the insured vehicle is available without regard to fault in the auto accident (No Fault Auto Insurance)
Different policies specify the circumstances under which each item is
covered. For example, a vehicle can be insured against theft, fire
damage, or accident damage independently.
Depending on the jurisdiction, the insurance premium can be either
mandated by the government or determined by the insurance company, in
accordance with a framework of regulations set by the government. Often,
the insurer will have more freedom to set the price on physical damage
coverages than on mandatory liability coverages.
When the premium is not mandated by the government, it is usually derived from the calculations of an actuary,
based on statistical data. The premium can vary depending on many
factors that are believed to have an impact on the expected cost of
future claims. Those factors can include the car characteristics, the coverage selected (deductible, limit, covered perils), the profile of the driver (age, gender, driving history) and the usage of the car (commute to work or not, predicted annual distance driven.
Investing money on
insurances like auto insurance is always worth it. It is the most ideal
way of keeping valued items secured and it is way cheaper to pay
premiums for insurances than having to purchase a new vehicle.
Article Source: http://www.articlesbase.com and
http://en.wikipedia.org/wiki/Auto_insurance
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