To help you find the best auto insurance companies, we evaluated insurers based on average insurance rates, levels of complaints, and grades.
Section 1:What is Auto Insurance?
Insurance is generally defined as a legal agreement to cover financial losses if something goes wrong. The most common way that insurance companies make money is through premiums.
Insurance premiums are money paid to a particular company to cover the costs of claims that you make if your car breaks down, gets stolen or you get in an accident.
Generally, insurance companies assess a person’s risk of making a claim by doing a risk assessment on them. The insurer then creates a policy that covers any losses that are likely to happen, and prices the premium accordingly.
In addition to premiums, there are the costs associated with offering a policy and dealing with any claims that you make.
Section 2:Why Have Auto Insurance?
Do you drive? If so, you may be one of the millions of Americans who carry auto insurance. If you don’t drive, you may be one of the estimated 17 million Americans who don’t have auto insurance, according to the Insurance Information Institute.
Are you more likely to get in a car accident if you don’t have insurance? No, the answer is actually no, according to AAA. Insurance can help you pay for repairs and replace your damaged car.
If you decide to get car insurance, what type do you get? According to the Insurance Information Institute, traditional multi-peril policies are the most popular, followed by personal auto insurance and other types.
Car insurance can also cover other things like your home and rental car.
Section 3:How to Get the Best Auto Insurance Rates
Car insurance rates vary dramatically depending on your coverage choices and your driving habits, even if you own the car. Our guide to finding the best car insurance quotes will help you save hundreds of dollars.
Finding the Best Auto Insurance Companies
Car insurance is a highly complex subject, and many consumers still don’t understand it. Here are a few tips that can help you shop for car insurance:
• Shop your coverage: Try to compare insurance companies before shopping for quotes, and keep in mind what you know about your car and driving habits when choosing the company.
• Shop for new drivers: Many insurers are selective about who they offer car insurance to, and new drivers can often get a much better deal.
Section 4:Myths about Auto Insurance
Myth 1: Car Insurance is for the Casual Driver
The concept of the ‘casual driver’ exists for a reason. In theory, you shouldn’t need to be the person who picks up the kids from school or helps your aging parents cross the road. That’s your partner, not you. In reality, while in theory, you shouldn’t have to be your family’s designated driver, even in good economy and insurance – often you do.
Myth 2: Everyone has a story about how they were mugged at knifepoint by a desperate driver desperate to avoid a multi-vehicle pile-up. Well, sadly, most of us have.
Can you still drive responsibly if you’ve had a nasty accident and weren’t the one at fault? We found that for some motorists, the consequences can be lifelong.
Being car insurance rates, you should remember that factors including age, gender, driving history and driving record have an influence.
Specialist car insurance companies usually charge lower premiums and to get the best deals you should check the claims experiences of car insurance companies you are considering.
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Video: How much should I expect to pay for car insurance?
Compare the best car insurance policies of 2017.
Reasons why car insurance rates differ
Car insurance premiums are calculated based on a number of factors and each driver should consider what factors affect their premiums.
Life insurance premium rates – the cost of insuring a life – are linked to the cost of funerals and depend on an individual’s state of health.
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