Friday, March 2, 2012

Automobile Insurance Basics | Articles of car, motor, auto, vehicle ...

Insurance for an automobile is calculated by an insurance company by using various factors. This article provides an explanation for how this type of insurance works.

Car insurance is required by all states which mandate minimum coverage limits. If you want to find the price for an insurance policy you need to learn how the policy rate is factored and available options that are included on a policy.

Obtain Rate Quote

Many options exist for you to obtain a rate quote for car insurance. You can contact a local agent that is in your area or by using the internet. If you use an independent insurance agent, they can obtain a quote from multiple car insurance companies. When using the internet you will need to enter all of the needed information to obtain an accurate quote.

Premium Calculation Factors

Car insurance companies use various factors to calculate the premium rate for your policy. Some of the factors are beyond your control and others you are able to change. Car insurance companies will factor your age, vehicle use, driving history, credit score and any policy claims when calculating an insurance rate. You are able to affect your policy rate by having a clean driving record and limiting the number of policy claims. By limiting the factors that can increase your policy premium you can save money. This includes the amount of driving that you do with your vehicle.

Bodily Injury and Property Damage Liability

Car insurance policies include coverage for bodily injury liability and property damage liability. Bodily injury liability pays for medical expenses due to an injury and lost wages resulting from an accident but nor damage to your vehicle. Property damage liability pays for damages and loss of use to property that includes another car. This coverage will also not pay for damage to your vehicle.

Collision and Comprehensive Coverage

Coverages on a car policy that pay for damage to your vehicle include Collision and Comprehensive. If you are involved in an accident with another vehicle, then collision coverage pas for damages sustained to your vehicle. If you sustain a loss that is due to theft or a non-collision accident, your comprehensive coverage will pay to repair any damages.

Choosing Available Discounts

Discounts that are applied to your car insurance policy are used to decrease the cost of the premium. If you are age 55 or over, you can obtain a mature discount on your policy. A discount is also available if you belong to a group such as an alumni association. You can save up to 20 percent on your policy if it is combined with another policy with the same insurance company.

Deductible

The deductible that you select for a car insurance policy is the amount that you need to pay before your policy pays out for any claims. When you select a higher deductible amount for your policy it is less an insurance company will need to pay for a claim. Increasing the deductible will also decrease the cost of your policy.

Policy Payment Options

Options that you can use to pay for a car insurance policy include electronic funds transfer for monthly and semi-annual payments. You can also mail a check for the monthly payment. If you pay for a policy in full you may also receive an additional discount from your insurance company.

Tags: auto insurance, car insurance, car insurance tips, motor insurance, vehicle insurance

Source: http://articles-of-insurance.com/car-motor-auto-automobile-vehicle-motorbike-bike-insurance/automobile-insurance-basics/

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