In this mortal life, we all are surrounded by risks. There are financial risks, physical risks, property risks and so on! We cannot escape the risks but can protect by forming a shell of insurance. Insurance can’t decrease the probability of the risk but it provides assistance and financial protection. Car insurance is also the major decision as the quote you receive from the insurance company may be too high or too low! Thus it is necessary that you should be aware about the variable components of car insurance. Here is the breakdown of all such factors which can give you an idea that how much car insurance you need!
- LOCATION: The premium rates are generally higher in the densely populated area as the risk of accidents is higher at such places. At such places the minimum amount of cover fixed by the authorities is comparatively high than the average rate of premium in less populated areas.You can check out the rates of state insurance on internet!
- DRIVING HABITS: The answer of how much car insurance you need is more or less dependent upon your driving habits. If you go daily to your workplace by car and drive for much long then you obviously require more coverage but if you can somehow carpool or use public transport and commute very minimal with your personal car then you can take lower coverage.
- COVERAGE AGAINST UNINSURED AND UNDER INSURED DRIVERS: When you are taking the insurance coverage make sure that you are adequately covered against uninsured and underinsured drivers. It is because if you collide with some uninsured driver then he won’t be able to give you an adequate cover for your medical costs. It is relatively inexpensive as it covers those costs which your health insurance may not!
- DIFFERENT COMPONENTS: The components of car insurance are mainly bifurcated into two prime factors. The first is related to the driver and passengers in the car of the driver who collides with you or you collide with him and the second is related to your side. The liability and bodily injury liability clause covers the people you hit with your car when you are at fault. The property damage clause is to reimburse for the damage done to the car if you are at fault in accident. The personal injury protection is to cover the medical expenses of you and people in your car. The comprehensive cover works if the car is stolen.
Comprehensive and personal injury protection is a must have and you should cover yourself adequately against uninsured drivers as well. In any case don’t forget to compare the insurance quotes from different insurance providers. You can also customize your policy by getting coverage for only major damages and not of regular damages. This way you could save $50 per month! It’s obviously better to pay $500 whenever the need arise instead of paying $50 every month! So your car insurance is basically dependent upon all the above factors, make sure that you get a cost effective policy!