Auto insurance protects you against financial loss if you have an accident. It is a contract between you and the insurance company. You agree to pay the premium and the insurance company agrees to pay your losses as defined in your policy.

Auto insurance provides property, liability and medical coverage:
* Property coverage pays for damage to or theft of your car.
* Liability coverage pays for your legal responsibility to others for bodily injury or property damage.
* Medical coverage pays for the cost of treating injuries, rehabilitation and sometimes lost wages and funeral expenses.

How is your auto insurance policy price determined?

The average auto insurance policy price  is derived from a variety  of factors.

Many of these variables are common knowledge and make sense for the most part.

It’s always a good idea to refresh yourself with what insurance companies are looking for when determining how your coverage will cost.

* Driving Record
* Coverage Amount
* Age
* Vehicle Model and Driving Mileage
* Your Residence

What auto insurance coverage?

What types of auto insurance coverage to choose from?

* Liability: coverage is the primary-and usually mandatory-part of the auto insurance equation. Liability means what the word implies: it saves your bank balance when you’re liable for destroying someone else’s car or body parts.

* Collision: which is not to be confused with liability. Liability pays the bills for damage you  cause to the other party; collision covers damage done to your own car. If someone else totals it, his liability pays for repairs (assuming he doesn’t hit and run), so if you can follow the aforementioned tip of not crashing, you generally shouldn’t need collision. In simplified terms, buying collision insurance  can be thought of paying someone to save from yourself. The safer you drive, the less necessary it becomes.

*Uninsured/underinsured motorist coverage, required by most states, is always a good idea knowing that 17% of drivers out here don’t have any insurance, and a lot of the rest probably skimp by on the sometimes-in adequate state minimums. This usually varies in tandem with the body injury part of liability. Don’t sweat it too much, as the premium is a mere fraction of liability.

* Personal Injury Protection(PIP) or Medical Payments (MedPay) provides reimbursement for medical bills of you and tour passengers regardless of who’s at fault, and for resulting lost wages. This is an option-one that those with good health insurance plans might not want to exercise.

*Rental reimbursement simply pays for the cost of renting a car. Even is it costs $30 a year, why brother? $30 basically buys a one-day car rental, so it’s hardly worth it unless you get stranded a lot.  (In which case, you might want to switch cars). If you own a second car, this is completely unnecessary. The  same reasoning applies to towing insurance and the like.

* GAP insurance, which covers the difference between what the car is actually worth and what you owe. . This might be an attractive proposition for a car that with heavy depreciation, which is a symptom suffered by young cars in general. A $20,000 car might drop to $12,000 in market value after a year. If you total the car at that point, $12,000 is all you’ll get from your insurance company, yet you’re still obligated to the $16000 in payments that still remains. Obviously, $4,000 is one gap you’ll want closed.

Can you raise or lower your auto insurance rate?

There are 10 factors that can raise or lower auto insurance rates

* Your Age

Generally younger drivers are considered to be  high risk and so the insurance rates are higher.

*The make of your car
Most insurance companies tabulate auto insurance rates based on the make of the vehicle. Compact cars and sedans have lower rates while sports models, exotic cars, and SUVs are assigned high rates of premium.

* General is a factor too
Females get lower rates of auto insurance while males pay higher auto insurance premiums.

*Financial stability
Auto owners with great credit scores and credit reports generally pay lower premium than those with bad credit scores and reports.

*Driving records have a say in premiums payable
If a driver has a clean driving record for three consecutive years then auto insurance providers will happily extend policies with lower premiums.

*Where you stay
Those who live in the city pay more than individuals who live in the country or suburbs. Areas with lower crime rates and less congestion attract lower auto insurance premium rates.

*How many insurance policies you hold
If you approach for auto insurance the same insurance company that has you covered for live, health, hone and so on then you would automatically be eligible for great discounts on premiums payable for an auto insurance policy.

* The condition of the car will be considered before offering a policy
The make, how old  the vehicle is , its maintenance, and so on. A car in prime condition will get better premium rates than a rattletrap.

*The distance traveled per year
If you restrict the number of miles traveled then you will be able to get auto insurance at lower rates. To do this you need to walk, use public transport, and car pool.

*Whether or not you are eco-friendly
If you care for the environment and drive a non polluting vehicle then the auto insurance premiums will be lower.

Why do you need international vehicle insurance?

If you live in a foreign country  for an extended period it is important to ensure that your vehicle is properly insured at all times. International vehicle insurance is specially designed to meet the needs of:

* Diplomats.
* Expatriates.
* Humanitarian organizations.
* International businesses.
* International charities.
* International schools.
* Religious orders.
* United Nations agencies.

International Vehicle Insurance should include cover for:

* Accidental damage, fire and theft risks.
* Protection against windscreen breakage and for fitted accessories such as audio equipment.
* Additional protection against riot, civil commotion, hijacking and armed robbery.
* Hurricanes, earthquakes and flooding.
* Payment of the purchase price for a seriously damaged or stolen car that is less than 12 months old (on Non-commercial Policies only).
*Immediate cover anywhere in the world (except the USA and Canada).
* Multiple vehicle and fleet discounts.

Additional policy benefits may include:
*Mature driver and limited driver discounts.
* No Claims discount available
* Fast and efficient claims services including immediate authorization for essential and minor repairs.
* Payment of claim settlement direct to a personal bank account and in the currency of choice.

How do you lower my auto insurance rates?

Since  there are many factors that go into determining your auto insurance rates, there are many chance to lower your rates.

*If you change jobs and your drive to work changes or you stop working or you work from home, you should contact your insurance company.
* If you have a teen driver and they go to school over 100 miles away without a car then you should be able to get a discount.
*If you get married and are in your teens or twenties call your insurance company and see about combining your policies.
*See if increasing your comprehensive and collision deductibles will save you a lot of money.
* You need to compare what you’re saving and how much more you will have to pay if you file a claim.

Can your age be a problem into  auto insurance?

In auto insurance know as the age factor.

Your age can be a big problem in auto insurance. It could also be a great advantage. Whichever group you fall into, there’s a way for you to make the most remarkable savings in auto insurance premium.

*If you’re above fifty-five thank your stars. You’ve entered the hallowed zone in auto insurance. If you don’t get pampered by an auto insurance provider now, you ever will. This is because you belong to an age group that has a high reputation of road safety.

*If you’re under -25, you’re considered a very high risk as far as auto insurance is concerned. Yes, if you’re in your early twenties you’ll be better off than a teenager. However, you still are a high risk group. There are several options open to you.

-You can get married if you are old enough and it makes sense in your circumstance. I’m not kidding here. Marriage does reduce the perception of risk auto insurance providers have of you.

-Another thing you can do as an under -25 is to be on your parent’s auto insurance policy.

Why is Women’s auto Insurance So Much Cheaper Than Men’s?

Statistically, women drivers are the safest on roads, and therefore are rewarded with cheaper premiums for car insurance. Women on wheels combines these discounts with supreme cover, that automatically includes a free replacement car (on comprehensive), free abroad travel, and free legal cover!

About the author:
By Adel Khamis Hassan.
Adel Khamis Helping You To Know Every Thing About Insurance.

Article source: http://article-dashboard.com