Monday, December 17, 2007

Why You Need Auto Insurance

In America it is a law that you have auto insurance, and if involved in a car accident and do not have insurance your license could be suspended, whether you are at fault or not.

If you are looking for auto insurance for the first time, your premium will be higher than someone who has a proven insurance record. When getting quotes for auto insurance you will be asked to provide a deductible amount, or excess. This is the amount that you will have to pay before the auto insurance company pays your claim. The higher deductible you chose the lower your auto insurance premium will be.

You can be sure that you will be checked to see that you are a viable insurer and that your credit references check out. Most auto insurance companies are now basing the cost of your auto insurance policy on your credit score.

Auto insurance companies quickly and efficiently evaluate their potential customers by using companies like Choice Point who build insurance scores, specifically for the insurance companies. Choice Point provides government organizations and auto insurance companies with a combination of information and analysis on you, but you can obtain copies of those reports at no charge. In both cases, if there is information in your reports that you believe to be wrong, Choice Point will show you how to dispute it - again, at no charge.

As these insurance scores are generated secretly, we aren’t really able to say how we could improve on our scores. However, by keeping a good credit rating by paying accounts and not getting into arrears, and attending to all tax requirements, would be a good start. Also, they will be recording any auto accidents and should you have many, this will be a score against you.

Not all auto insurance scores are the same. They can come from a variety of sources, depending on who builds the software. An auto insurance company might have its own score that incorporates credit related information along with other data ��" such as details you provide on your auto insurance application.

It is advisable to include on your auto insurance policy any other people who may be driving your car - for example, if you have any children of driving age as well as your spouse.

If renting a car at any stage, check that you are covered by their auto insurance; otherwise contact your insurers, as footing the bill of repairs on a rental car in an accident could be very costly. You would want to have auto insurance to cover your costs as well as the other car involved.

If you own a vehicle in Ontario, you are required to, at the very least, purchase the following automobile insurance coverage: Third-Party Liability Coverage: This section of your automobile insurance policy protects you if someone else is killed or injured, or their property is damaged.

When choosing an auto insurance provider, you will want to check that the company is financially secure, and has a good track record. The sole reason for having auto insurance is so that if you have a claim you can recover the bulk of the costs of the damage to your car.

The Auto Insurance Company would first go through your documents, do a proper enquiry about the damage and then decide if they agree for the Auto Insurance Claim. For claiming from the Auto Insurance Company the driver needs to be a minimum of 18 yrs of age or else it is illegal.

So it becomes very important to do research about the auto insurance company you want to take out auto insurance with. Buying the Insurance can protect the consumer from Comprehensive coverage and Collision coverage. This also enables him to have Personal Injury protection and pay the Medical bills. Therefore by making an Auto Insurance Claim, one can not only get paid for their damaged car, but also can insure against the cost of medical expenses.

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