If you own a vehicle and you want to use it legally, you must have valid motor vehicle liability insurance. It means financial defense for your auto, motorcycle or truck in that case if you get involved in a traffic accident that results in human or material damage.
The regulations of automotive insurance are unique in every country. In the United States of America you have to meet the requirements of your own state.
Anyway, it's a common condition all around the world that vehicle owners have to buy insurance before they start to drive on public roads.
There are several items that can be insured in a support policy: your vehicle(s), you and your travellers, the other damaged vehicle and its passengers. You can also get clearing for renting an auto instead of yours and for towing your damaged auto to a repair shop.
The car insurance companies take into consideration several factors in order to determine each person's premium - they would like to have minimal risk in the case of each customer. The most important factors are the features of the driver such as age, gender, marital status, driving record and credit ratings. Besides these the car specialities (capacity, retail price) and the way of using the car (it matters how much and where you will use it) are also essential. Your monthly fee will depend on the degree of coverage that you choose.
You can extend your basic policy with cover for natural wear. It is not apply to damages which are results of collisions, made by vandals or natural forces. After the expiration of warranty this can be a really useful service.
The insurers monitor regularly the points of their policyholders. Every driver will get plus points, if they cause accidents or violate the traffic rules (such as driving through the red light, speeding). If you have more points, you mean bigger risk for the insurer and because of this your premium will be higher.
I would like to recommend a few simple tips that you should follow in order to avoid the increase of your premium:
· Drive safely and always wear the seatbelt! Don't violate the rules and don't get into accidents - a speeding ticket can increase your premium by 15%; if you get a ticket because of reckless driving or you drive under the influence your base rate can be bigger by 20% or more, after an accident up to 40%.
· You should report even your smallest accidents to your provider. If you don't do it, they may cancel your policy.
· Install an anti-theft device to your auto to help in the preventing of theft.
· If you take and pass a defensive driving course that is accredited, your rates can be cut by 10%.
Don't forget that your premium will be higher automatically if you have a flashy sport car.
Some companies have started to use an odometer-based insurance system. They follow up their policyholders' odometers. In this case the support will end when the odometer reaches the previously determined limit - it is on the ID card of the car which has been given by the company to the driver. But if you buy more distance, then the insurance will continue. This system is good because you don't have to predict the distance that you will drive in the coming year. And the police officers can easily check the validity of the insurance: they only compare the numbers on the card and on the odometer.
