Insurance is a kind of a preparation plan where in you protect yourself, loved ones, and properties in event of disasters, accidents, calamities and other unpredictable happenings. that might occur. It is a protection in form of premiums payments you make to an insurance company who in turns will bear the risks you once have borne and will guarantee to take care of everything in cases calamities, burglary, accidents and other unforeseen events

Car insurance as the name suggest is an insurance you take for your car so that in case of road accidents you may be compensated for any expenses and injury your might have incurred. There are many types of car insurance plan where in each plan is tailor made for specific requirements and needs of the customer. Theft of car, effects of typhoons and earthquakes, body injuries sustained, property damages and loss are just a few of incidents that are covered by the car insurance. The premiums of the insurance will depend on the kind of car being insured, the kind of driver/owner of the car and the location where your car is. In other words risks will play an important role in the amount of insurance premium. A more expensive and high risk car will definitely command higher premium payments from the owner as compared to a cheaper and safer vehicle. In the same way a younger and more inexperience driver will have to pay higher premiums to an insurance company than an older and more experience one since the risk involve for an older driver is much less than n the others because of his inexperience in driving. An insurance company will put a higher premium rate on someone who lives in disaster prone areas than someone who resides in a safe and secure community.

There are four main factors that keep your car insurance premium down. One is, to consider buying cars that are in the good list of car insurance companies. Cars that are expensive are more at risk of stolen. Aside form that insurance are also based on the value of your car, so the more expensive it is, then the higher the premium you pay. Remember car insurance company knows what cars are prone to accidents and other risks. They also know what kind of cars is prone to higher risk and the higher risk it has the higher your premium rate is.

Another factor is insurance companies offers discounts for many reasons like, being a good student, you have more than one car insured. and other specific discounts.

Third is lesser use of car means lesser premium payments for insurance. Drivers who go to long distances to get to work daily will pay more premium rate. And on the other hand, if you are the type of person who uses your car only on weekends or on shorter distances then you will likely incur lesser amount on insurance premiums. And fourth is if you are a careful and experience driver you are likely to be given discounts on your insurance premiums. Your age, sex, marital status and driving record will all be taken into account when you buy insurance for your car. A driver who is prone to accidents and traffic violations means higher risk for the company that’s why they would charge him higher premiums. Accident rates are believed to be higher among below 25 year old drivers so they will pay more.

Understanding the simple basic of car insurance will help you choose the right kind of insurance policy that will take care of your needs in case you get involve in an accident. It is always good to be prepared rather than be caught unaware and risk paying thousand of dollars in times when you yourself needs that amount.


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