A car accident is a traumatic experience and even a small bang can leave you feeling shattered for days. And then there are the expenses that follow… But you have car insurance, right?
Do I need car insurance? You absolutely do. Driving without car insurance is illegal. Car insurance, even cheap car insurance, will protect you financially. But cheap car insurance is one of the most expensive aspects of owning a car. It is also the most important.
Even a cheap car insurance policy is your contract with your insurance company. You promise to pay the premiums and they promise to pay car related expenses for the period of the policy.
These are the different types of car insurance policies:
Liability Coverage. Mandatory. Covers bodily injury and property damage caused to others. Liability coverage pays only for bodily injury and property damage to others when you are at fault and it only pays to the extent of your dollar limits. Liability coverage does not protect you from your own loses.
Personal Injury Protection. Optional. Covers your and your passengers’ medical expenses resulting from an accident.
Collision. Optional. Covers damage to your car in collision with another vehicle or object.
Looking for cheap car insurance? These are the factors that affect rates:
Remember that the premium for the policy reflects factors such as age, gender, driving record and many others.
Age - Statistics show that drivers below 30 years old are most likely to be involved in a car accident.
Gender - Statistics show that men drivers are involved in more accidents than the rest of the population.
Type of car - The more expensive the car, the higher the insurance premium. This is because these types of vehicles are more likely to be stolen and cost more to repair.
Location - Insurance companies consider your location. Heavily populated areas tend to have higher number of accidents.
Driving pattern - The more you use your car, the higher the rate because there is more risk of being involved in an accident.
Buying car insurance, even cheap car insurance, is expensive. Therefore, it is important to compare the policies in terms of price, coverage, exclusions and the reputation of the insurance company.
Shop around when you are looking for cheap car insurance. Insurance is a highly competitive market and the insurance companies often offer ‘deals’ – you may be lucky!
