Car insurance is insurance coverage for automobiles, personal vehicles, trucks, and other road-related vehicles. Its primary function is to offer financial protection from physical harm or physical injury resulting from road accidents and from liability which may also arise out of vehicle-related accidents. Car insurance helps a person save his/her money, as well as his/her reputation, from the disastrous consequences of being involved in an automobile accident. Moreover, car insurance helps provide a level of protection for a person related to a car, which he/she would not be able to provide on his own. Hence, car insurance helps to protect the car owner from various potentially harmful events related to an automobile accident. This is especially important when a person owns a car that is relatively expensive, as an accident can cost him/her a lot of money. A person can choose between two major types of car insurance policies, namely, liability coverage and uninsured motorist property damage coverage. Liability coverage provides monetary support to a driver in the event that he/she causes an accident, irrespective of who is at fault. However, this type of policy does not have any affect on the driver's rights and obligations, such as payment for the medical bills and damages. Uninsured motorist property damage coverage, on the other hand, provides monetary support to a driver, if his/her vehicle gets damaged due to the negligence of someone else. This coverage does not apply to drivers who have signed an auto insurance policy. There are several individual factors, which affect the insurance rates of a car insurance policy. These factors include the age of the individual applying for insurance, the car made, the annual mileage or the total number of miles driven, the gender, marital status, the driving history of the individual, and his driving history. All these factors affect the insurance premium in the individual circumstances. Apart from these factors, there are also some extraneous factors that can raise the insurance rates of a policy. These factors include the location of the individual, his age, sex, the type of car he drives, the driving history of the individual, his level of education, the coverage provided under the insurance policy, his credit rating, his driving habits and whether he is a frequent driver or an occasional driver. Read on to Know more about auto insurance. The premium of a car insurance alabama policy depends largely on the amount of deductible that is agreed upon. Deductible refers to the amount that needs to be paid by the insured before the insurance company will make a payment in case of a claim. High deductibles mean higher premiums. Another extraneous factor that is considered by insurance companies is whether the individual has opted for collision or comprehensive coverage. Collision coverage covers the accident damage to the automobile, but comprehensive coverage covers the damages done to the individual's own vehicle and personal belongings. Therefore, the choice of one over the other determines the amount of premium. One way of reducing the premium for an insurance policy is by reducing the chances of accidents. For instance, if the individual drives only few miles each day and always speeds in such a way that the vehicle never slows down, this reduces the probability of accidents because of the heedless speeding of the vehicle. Collisions with another vehicle are also counted as one of the common reasons for claims against an individual's automobile insurance. Therefore, collision coverage covers only those accidents in which the automobile is damaged by collisions with another vehicle. Liability coverage is a specialized type of car insurance policy which pays a person who has been injured in an accident because of the negligence of the other party involved in the accident. This type of coverage differs from liability coverage in the sense that it has several exclusive features. It pays only for the damage to another vehicle and does not pay for the medical expenses of the injured person, or for any other things included in bodily injury policies. There are many ways of getting a discount on a car insurance policy, but the best way to do so is to compare auto insurance quotes offered by different companies and choose the one offering the lowest coverage rates without any discounts or exceptions. Check out this related post to get more enlightened on the topic: https://simple.wikipedia.org/wiki/Vehicle_insurance.
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