Uncovering various details about auto insurance coverage


What is life without a home and a job? How do you commute between the two without a car? Even if you are the blessed enough to work out of your home, you definitely need to drive for other activities of your life like shopping, school and related activities, socializing and all the rest of it! Driving is an activity which is inherently fraught with risks. You risk injury to yourself, your co-passengers, other drivers and pedestrians on the road.  There is also the question of making good the damage to your own or the other car in case of an accident. Even the most defensive of drivers with an impeccable driving record need auto insurance coverage for reassurance against life biggest imponderable – what if? And if you still don’t get it, legislation will force you to get it – auto insurance coverage of course!

Your auto insurance coverage depends on obviously you! Who you are, where you live, your age and sex, the kind of car you drive, how many cars you own, your personal habits, the number of people who drive the car in question, your lifestyle, your risk profile are some illustrative factors which determine the quantum of the insurance cover. Let’s start with you – if you are a young student seeking insurance for your first car, the recommended insurance cover is likely to be higher. Some companies are known to set differential rates based on the sex of the driver. There is no sexism or ageism involved here – it is simple extrapolation, based on the accidents involving drivers based on sex and age. Auto insurance like insurance of any kind is a probability game!

Your car says a lot about you as a personality – your car also says a lot about the kind of auto insurance cover you will need. The stylish sports car will entail a higher amount of auto insurance premium as compared to a soccer mom’s van. Shared cars may mean higher covers while multiple cars used by the same person mean lower premiums. Premiums in low traffic suburban neighborhoods are typically lower than in their urban counterparts. As with your advocate and your doctor, it pays to be honest with your auto insurance company. Tell them everything that is essential and then some more! Ask them all the details in terms of deals and discounts offered.

Auto insurance coverage often involves the base price, optional components of the policy and your own budget for the cover. Enquire about the exigencies that are included under the cover and customize the policy for you. It may make eminent sense to do a detailed study even before you decide what model of car to buy. Failure on this front may lead to nasty surprises later since the premium for such cover is a recurring expense. Place your budget figure on the table and stick as close to it as possible – this enables the company to ask as many right questions so as to charge a premium in line with the stated budget, while still ensuring that you are adequately covered.