Car insurance is legally required to drive in the United States and, when wisely selected, can do a great deal to bring a driver peace of mind while complying with the law.

Deductible

A deductible is that amount of the claim that must be paid by the driver before their insurance kicks in to cover the rest. High deductibles are the tradeoff for lower costing car insurance policies. It is important that the deductible be an amount that the driver can afford to pay at any time.

Liability Only

Liability only insurance refers to the minimum coverage level provided by most states. Liability only policies pay for those damages to persons and property that are found to be the fault of the driver, protecting them from lawsuits.

Comprehensive and Collision

Comprehensive and collision policies cover damage to the car of the policy holder. Collision insurance pays for damage done to a car in a collision, minus the deductible. Comprehensive insurance is sometimes called \”other than collision\” since it will pay for damage caused by fire, flood, theft or animals. The combination of liability, collision, and comprehensive insurance is often referred to as \”full coverage\”. Some insurance companies will only sell collision and comprehensive insurance when they are bundled together, and additionally require the same deductible for both forms of coverage.

Factors That Go Into the Price of Auto Insurance

The Motor Vehicles Department of most states maintains a \”points\” system, which tracks the traffic violations and accidents of each registered driver. Insurance companies check up on the driving records of policy purchasers, to make sure that their applications were honest. Negative information may result in increased insurance rates, which is determined by the company\’s internal points system. Only \”moving violations\”, as opposed to parking tickets, affect car insurance London rates.

There are various demographic factors that may affect car insurance Waterloo rates. Marriage is considered to lower a driver\’s risk by many insurance companies, unless their spouse has a poor driving record of their own. Age, credit rating and gender are also considered. Men are usually evaluated as being higher risks than women. Younger drivers are considered to be riskier than older drivers. Low credit ratings are associated with a higher likelihood of filing claims.

The vehicle itself is a factor in the price of car insurance. The more expensive the vehicle, the more expensive insuring it is likely to be as its repair costs are higher. Smaller cars are known for more collision and injury claims than larger vehicles. This may be due to younger, inexperienced drivers being more likely to drive smaller cars.

Selecting An Appropriate Amount Of Coverage

Auto insurance is a very powerful means of self-protection for drivers. Liability insurance protects the current and future assets of the driver from lawsuits, should they be found to be at fault in an accident. It is a wise idea for drivers to carry as much liability insurance as they can afford. Comprehensive and collision insurance protects the investment made in the purchase of a car, and should be chosen in accord with the value of the car itself.

At Steven & Hunt we offer great rates car insurance Kitchener, home insurance Kitchener and more. Contact their office to discuss your needs with one of their many insurance brokers.

At Steven & Hunt we offer great rates car insurance Kitchener, home insurance Kitchener and more. Contact their office to discuss your needs with one of their many insurance brokers.
http://www.sthunt.com

Author Bio: At Steven & Hunt we offer great rates car insurance Kitchener, home insurance Kitchener and more. Contact their office to discuss your needs with one of their many insurance brokers.

Category: Finances
Keywords: insurance,automotive,finance,investment,home,family,business,service,society,personal finance