Auto (car) insurance is a form of insurance policy for damage to and the effect of an automobile. This type of insurance can cover a variety of things depending on the type of auto insurance you purchased.
All auto insurance policies are subject to a premium which is the payment that a customer makes for auto insurance. Auto Insurance premiums can be highly divergent, and are determined by a number of factors. Gender is the main determinant of automobile insurance premiums. Statistically, people are 80 percent more likely to be involved in an accident, and therefore have a greater insurance demand. Men’s auto insurance premiums are higher than women’s self insurance premiums. Similarly, adolescents are considered to be at high risk and they will have to pay higher auto insurance premiums. The auto insurance premium can be reduced if the teen takes a course in defensive driving. Many states require teenagers to take defensive driving lessons to get driving license and auto insurance.
Auto insurance plans are common to have a premium for which the consumer is liable before the auto insurance provider provides coverage of expenses. Deductibles may impact the coverage provided under an auto insurance plan.
Auto insurance is slightly different from other insurance types, because you can buy auto insurance covering specific needs. There are various forms of car insurance for this purpose. The basics of auto insurance are covered by auto insurance plans for liability. Auto Liability insurance is typically the minimum required by state legislation. Liability auto insurance is characterized by a fixed dollar amount of compensation for accident or negligence-related claims. The amount of liability auto insurance coverage can be applied to property damaged in an accident which is not an automobile.
Car insurance also comes as auto insurance for collisions. Collision auto insurance is intended to cover the cost of repairing a vehicle that was involved in an accident, or the vehicle’s cash value if it can not be repaired.
It also provides extensive car insurance. With comprehensive auto insurance, repair fee cover is provided for non-collision accidents. For example, extensive auto insurance can cover hail damage or fire damage.