- Personal Finance»
Is Auto Insurance Really that Important?
For many people, auto insurance, home insurance, life insurance, and all other types of insurance available in the market today are just simple accepted expenses that they don’t give any serious consideration. This article seeks to shed more light on the importance of auto insurance and the reasons why you must have one, in case you ever think of going without for whatever personal reasons you could be having. Basically, there are around 20 different types of insurance policies available in the market today, ranging from auto to home, life, and health insurance which happen to be the leading of popular insurance policies today.
Auto insurance is one of those basic types of insurances, and is a policy that is taken against your car to protect it against such things as losses that one incurs from theft, accident, vandalism etc. Auto insurance can, and should be taken for any type of vehicle, be it a sedan, a truck, a motor home, a boat, a motorbike and all else in between. Auto insurance can be described as a contract between a client (read car owner) and an insurance company whereby the client agrees to pay a set amount of money or premium each month to the insurance company. The insurance company on the other hand agrees to pay for any loss as will be defined by the policy in question.
The main items that an auto insurance policy covers include:-
- Medical cover is one that pays for the cost of medical expenses incurred while treating injuries as a result of an accident caused by the insured car. Funeral and rehabilitation expenses also fall under this category.
- Liability is a cover that caters for expenses incurred for damage to property and body injury to someone else and to you as the policy holder
- Property just in case your car is stolen or is damaged, the reimbursement is made under the property coverage
One thing that you should be aware of is that insurance companies will normally charge a flat rate premium whether you frequently use your car or not. With that being said, the main benefit of taking an auto insurance is for you to be able to have some form of security in the event that an accident occurs and you are not financially stable to pay for the medical expenses and stuff, both for yourself, a third party, and pay for such things as car repair. The other reason why you must have auto insurance is because it is a requirement by law, at least in most countries.
Most of the auto insurance policies available today will be valid for a period ranging between 6 and 12 months, after which you are expected to, renew your policy prior to expiration. Your insurer will notify you by mail prior to the policy getting canceled. Be advised if anything happens in between the period after policy expiration and policy renewal, you will be liable; your insurer will not take any responsibility whatsoever.
- How to Lower your Auto Insurance Premiums
Granted, auto insurance companies can make a kill from auto insurance premiums seeing as it is that they are in the business to make a profit, and a huge one at that. If you are not careful enough, you may end...