The Importance of Carrying Affordable Auto Insurance
While it is common knowledge that the majority of people in the United States have been struggling financially since the recession of 2008, and are looking for ways to cut back on bills to make their make budget remain in line with their earnings, one expense that it is important for all drivers to have is auto insurance.
While not all states require drivers to actually purchase auto insurance, all states do require all drivers to be financially responsible. This means that should you be involved in accident you need to show proof of your ability to pay. Since most people simply don’t have thousands of dollars in the bank to pay the medical bills of someone they hit, or repairs to vehicles and other property then having auto insurance to cover these bills is extremely important. While each state has their own laws regarding the type of auto insurance drivers must carry (If you carry auto insurance) the majority of the states require or at least strongly suggest that drivers carry insurance to cover:
Injury of anotherInjury to yourselfProperty damage
Different insurance companies offer different auto insurance rates based on their own criteria of what they feel makes a driver more or less likely to have an accident. Some of the criteria that insurance companies base their rates on include:
You age and the amount of driving experience you haveYour location. If you live in a congested urban area you are more likely to be involved in accident than if you live in a rural area where there is little traffic.The amount of coverage you desireThe type of vehicle you possess
In addition, most insurance agencies give you discounts for various things, and each different insurance company has their own idea of what type of behaviors and actions are worth offering a discount for. Some of the most common discounts insurance companies give include:
Customer loyalty- If you are long time customer of an insurance company with a good driving record some insurance companies give you a discount based on your long term relationship with the company.Safety Gadgets- If you take steps to help prevent your car from being stolen such as keep it in a garage, purchase anti-theft devices, and avoid driving in certain areas some companies reward you for taking steps to protect your property by giving you a small discount on yearly insurance rates.Taking part in safe driving programs- Younger people may be able to get a discount on their car insurance premiums by taking part in safe driving programs beyond the standard drivers training.Bundling- Many insurance companies give discounts to customers who carry insurance with them for more than one car, their house, and even life insurance. While the actual discount for each of these things doesn’t amount to a lot of money, together they can result in significant savings.
By checking around and finding out what different insurance rates different companies offer, and what discounts you are entitled to, you can find affordable car insurance that protects you, your loved ones and other drivers on the road.