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Car insurance and why you need it

If you own a car you must know that maintaining it is very costly. To add to this is the car insurance which will vary depending on the make, model, state you live in and of course the liabilities. Your age, number of earlier accidents, etc., all contribute towards insurance. Here are a few basic things you should know about insurance.

Do not run your vehicle without insurance as it is illegal.

If you get caught with an uninsured car, you will have to pay a penalty and risk having your licence and vehicle registration suspended. As car insurance is all about risks, the more risk it covers, the more expensive it will get. Insurance companies look into various aspects before quoting a premium. Age, gender, marital status, where you live, your credit history, driving record and even how you use your car are all factors that are considered.

There are three types of car insurances. One is third party car insurance which is the most basic and minimum legal requirement. This pays for the damage caused to any third party’s car or vehicle by you. This doesn’t pay for your car’s damage.

The second one is third party fire and theft car insurance. This covers the cost of any damage caused by fire or theft to any third party’s car adding to your car’s damage as well. Even if the fault is yours, you’ll get the cover for your car.

The last and the most modified is the fully comprehensive car insurance. This gives you additional facilities so the young drivers often opt for this cover. It may even cost you lesser than the other two. You must check whether your car is worthy enough for this or not. It is therefore important that you go through all the premiums on offer before choosing one for yourself.

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