Auto Insurance

Feb 15, 2013 saw an asteroid hitting the Earth with the debris striking parts of Russia and posing risks to lives and personal properties in the area. Does that make you sit up and consider what’s going to happen if you’re subject to the next celestial grudge? Though such situations are very rare, there’s nothing to lose your sleep about. The standard insurance policies offer coverage for damages to your home, car or property, if ever you’re hit by asteroids, meteors, falling satellites and other similar space junks.

You might be genial enough to let others drive your vehicle. Don’t expect your insurer to behave in a similar manner. In that case, you can only pray that the other driver using your vehicle doesn’t get involved in an accident. If he or she causes any accident, and your insurer denies paying for the consequent damages, you’ll have to bear the expenses on your own. The costs might not only be for the damages to your own car, but will also take into account the damages to the other vehicle or vehicles involved in the accident.

The insurance industry works mainly on the principle that the insurer takes over the risk of the policyholder, and gets paid for it. In case the insured individual or property gets involved in an accident or faces a mishap, the insurer compensates for the damages and losses. However, it’s evident that the insurers set up their business to earn profit.  They evaluate the risks before allowing insurance coverage to an applicant.

Why risk is evaluated?

Your risk is assessed by the insurer when you go out to buy a policy.

The Insurance Information Institute, more popularly identified as the III, has forecast that the auto insurance expenses for the US are going to drop in 2012. It’s apparently good news for the Americans since their expenditures on auto insurance is going to be the lowest in the last 8 years, since 2004. The experts point towards the rise in the market competition amongst the insurers as the cause behind such reduction.

Many of you might have been planning to buy a car for a long time, and yet haven't bought one. If the reason for the delay had been the wobbly condition of the job market, or because you're unsure about the stability of your present job, it's time for you to reconsider.

Why the unstable job market is affecting car purchase?

US citizens had been hit hard by the Great Recession. The crashing job market had resulted in a lot of unemployment.

You may or may not have auto insurance. But you must have come across certain statements about auto insurance from those around you that have made you wonder, ‘Is this true?’ Misleading information might cost you later on, when you go out to buy auto insurance for your vehicle. So, you need to gear up for yourself and search out the truth behind the statements that you have come across.

Auto insurance myths

Auto insurance is indispensable for all the vehicle owners. Most of the US states have made auto insurance coverage mandatory for their residents.

You might be wondering why your auto insurance premiums are higher than that of your neighbor. You grumble every time the payment date for your auto insurance policy comes near. It's because you need to keep aside a substantial amount out of your gross monthly income, to protect your vehicle against any future mishaps. Have you ever considered the fact that your neighbor might be driving a low-profile car? Or he might just be a more careful driver than you are? Well, you need to, since several factors influence auto insurance rates.

You must have come across the term 'auto repair insurance', when you were searching for an insurance to cover your vehicle. You might have thought that it was no different than conventional auto insurance. Well, you were mistaken not to have looked at it twice.

What is auto repair insurance?

Auto repair insurance is not essentially similar to the conventional auto insurance policies.

If you need insurance for your regular vehicle, you need it all the more for your antique car. Though 'antique' literally means old, any old car is not an antique car. A car is only declared antique when it has been manufactured at least 25 years ago. The Classic Car Club of America specifies the cars manufactured between 1925 and 1948 as classic or antique cars. The cars can be imported from a foreign country or built in America itself.

Insurance is one of the most important part of our daily lives. It provides you with a safety net wherein your most important assets are protected against accidents and disasters. Most people usually consider buying insurance to gain additional security to cover for major life events like birth, death, marriage or substantial debt purchases. Insurance itself is a complicated product and people end up making certain critical mistakes while purchasing coverage. Moreover, people don’t realize they need insurance until its too late.