Introduction
Auto insurance is a form of insurance that is designed to provide protection against losses that may be incurred as a result of a car accident. The goal when shopping for auto insurance is to buy adequate coverage without overspending and still protect all of your financial assets.
Insurance
Insurance companies give discounts for a good driving record, favorable credit score, safety equipment (for example, antilock brakes, airbags, alarm, etc), certain occupations or professional affiliations, and more.
Auto
You’re provided three specific types of coverage: liability coverage, property coverage, medical coverage. Auto insurance is a major annual expense, so it makes sense to shop and make informed decisions about the company you choose. Auto insurance companies offer many different types of coverage.
Company
It is important to keep in mind that the basis of insurance is a difference of opinion between you (the insured) and them (the insurance company). When comparing costs, be sure each company is quoting on the same basis.
Policy
Understanding what types of car insurance are available and what you specifically need is important in choosing the policy and coverage that is right for you. When you purchase insurance, you pay a “premium”- this is the price of the policy. Be prepared to make at least the minimum required payment to establish the policy. The policy defines the specific obligations of both the insurer and the insured.
Conclusion
Auto insurance is a major annual expense, so it makes sense to shop and make informed decisions about the company you choose. You should feel comfortable about your policy because you’re paying the premiums. While designed to provide protection against losses that may be incurred as a result of a car accident, you’re also protecting your financial assets. Auto insurance is but one price that must be paid in order to enjoy the privilege of driving. It’s a contractual agreement between an insurance company and an insured (policyholder). Although it’s a major annual expense, it makes sense to shop and make informed decisions about the company you choose. Auto insurance is an investment and you should feel comfortable about your policy. Auto Insurance is critical in protecting your financial assets.
