Auto Insurance - Get The Right Coverage From A Trustworthy Carrier |
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Clint Dixon
8 August 2012
Accidents happen, as much as everyone wishes this was not the case. In these unfortunate times, people who do not have auto insurance wished they did because of the financial liability and responsibility for damaged vehicles, and bodily injury to passengers. Thus the primary reason for auto insurance is to provide financial protection for the insured. However, purchasing auto insurance is not an option. It is mandatory in certain areas and is greatly enforced by the Motor Vehicle Administration (MVA). Failure to comply incurs fines and penalties from the MVA.
Additional secondary reasons why drivers should purchase auto insurance include theft of a vehicle. The insurance carriers will most of the time pay for an insured car if it's stolen.
Auto insurance coverage falls into two categories. There is the full coverage policy which takes care of the insured's car as well as the cost of damage to other cars involved in an accident. The other type of policy known as liability or third party auto insurance will generally pay for damage repairs and bodily injury of the other car and passengers involved in the collision.
While auto insurance is necessary for financial protection, there is no reason to purchase one with a higher premium that covers more than is necessary. The goal is to shop around with insurance carriers to obtain a cheaper quote that still provides adequate coverage in case of an accident. Getting a cheaper premium however might be a bit difficult for people with low credit scores and reckless driving habits, but there are some reputable companies who can still work with people in this situation.
It's great to get a cheaper insurance for good coverage, but one important thing to bear in mind is who the insurance carrier is. All carriers are not alike, and though insurance laws require them to operate in the same principles, the base rules might be followed, but some have hidden costs and regulations that only become apparent when a claim is being made by the insured. A thorough track record check must be performed on the chosen company in regards to how they treat their customers when it comes to claims. Another important check will be how solid the company is, financially. A good reference point can be testimonials from friends and family members who have used that particular company.
There are many insurance carriers with competitive rates who are happy to write policies for auto insurance, but one pointer to keep in mind is to make sure that the car is always covered because once an insurance coverage lapses, it can be very difficult to obtain coverage, let alone at a reasonable cost.