Auto insurance can be defined as a type of for damage to or resulting from an automobile. This time of insurance in practice may cover a wide variety of things taking into consideration the type of auto insurance being purchased.
Auto insurance policies always involve some form of premium, which is the payment made by a customer to the insurance company to have auto insurance. The premiums for auto insurance tend to be varied in their amounts because they are determined by many different factors. These factors included gender, accident history, driving record and age of the vehicle.
The auto insurance premiums for men tend to be much higher than auto insurance premiums quoted for women. Also, teenagers are generally considered high risk and their premiums tend to be higher. To reduce the auto insurance premiums for teenager it is advised that they take a defensive driving course. There are a number of states that require teenagers to take defensive driving courses as part of the requirement for obtaining a driving permit and auto insurance.
Many auto insurance plans have a deductible that the customer is personally responsible for before any coverage of expenses is offered by the auto insurance. The Deductibles may have some effect on the kind of coverage available under a particular auto insurance plan.
Auto insurance is somewhat different than the other types of insurance because you are able to purchase auto insurance that covers your specific needs. Because of this there are different kinds of auto insurance.
• Liability auto insurance plans. These plans cover auto insurance basics. Many states have laws making liability auto insurance the minimum requirement. The main characteristic of liability auto insurance is it’s set dollar amount of coverage for damages resulting from accidents or negligence. Some liability auto insurance extends the coverage amount to property damaged in an accident that is not an auto.
• Collision auto insurance is another form of auto insurance also. Collision auto insurance covers the cost of repairs to a vehicle once it is involved in an accident, or if it cannot be repaired, the cash value of the vehicle.
• Comprehensive auto insurance. With comprehensive auto insurance the cost of repairs to a vehicle once it is involved in accidents that are not collisions is covered. Therefore comprehensive auto insurance will, for example, cover fire damage.