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Why You Need Auto Insurance

Mar 29, 2008
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 taking out auto insurance for the first time, your premium will normally be higher than someone who has an insurance record. You will be asked to choose a deductible amount, or excess, when requesting a quote for auto insurance. An excess is the amount that you agree to pay before the auto insurance company pays your claim. If you choose a higher deductible, you will be able to lower your auto insurance premium.

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.

Insurance companies quickly evaluate their potential customers by using companies like Choice Point to build insurance scores. Choice Point provides government organizations and auto insurance companies with information and analysis about you, and you can obtain copies of those reports at no charge. If there is information in your reports that you believe to be wrong, Choice Point will show you how to dispute it at no charge.

These insurance scores are generated secretly, so nobody can really say how you could improve on your scores. By keeping a good credit rating by paying all your accounts on time, attending to all tax requirements, is a good place to start. They also record any auto accidents and should you have a few, this will score against you.

Auto insurance scores can come from a variety of sources, depending on who writes the software that does the calculations. An insurance company might create its own score which incorporates credit related information, along with other data - including details you provide on your auto insurance application form.

I recommend that you include other family members on your auto insurance policy who may be driving your car. As an example, make sure you include your spouse, as well as your children of driving age, and any friend or employee who may use your car on occasion.

Whenever renting a car, be sure to check that you are covered by their auto insurance; otherwise contact your insurers, as the cost of repairs on a rental car in an accident could be extremely high. You really need to have auto insurance to ensure that you are not footed with unexpected costs of repair to your rental car and any other car that may be part of an accident.

If you are a car owner in Ontario, at the very least, you are required to purchase third-party liability insurance coverage: This section of an automobile insurance policy protects you if someone else's property is damaged, or if anyone is killed or injured.

When choosing an auto insurance provider, be sure 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.

In the event of a claim, your Insurance Company will first go through your documents and do a proper investigation of the damage and then decide if they agree to pay the Auto Insurance Claim. In order to lodge an Auto Insurance Company claim, the driver needs to be a minimum of 18 yrs of age.

It is extremely important to research the auto insurance company you plan to insure with. Buying insurance can protect you with Comprehensive coverage, as well as Collision coverage. This also enables you to take out Personal Injury protection, which pays your the medical bills. Therefore when making an Auto Insurance Claim, one can not only get paid for their car damages, but can insure against the cost of medical expenses as well.
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