As one retires after several years of hard work, things that would deduct money from their wallets would have to be scrutinized, especially those ad hoc events caused by natural phenomena. Whereby no man is clairvoyant enough to notice until its occurrence.
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Insurance is the backup plan that keeps one safe and secure even in the midst of events that would ordinarily empty one’s wallet. One of this insurance to be considered is auto insurance.
Auto insurance
(also known as motor insurance or vehicle insurance) is insurance for road vehicles that includes trucks, cars, and motorcycles. Whereby it financially protects the insured against physical damages from traffic collisions. Its financial protection also extends against vehicle theft and damages sustained from events beyond control, such as natural disorder weather.
How auto insurance works? There is an agreed contract between the policyholder and the insurance company, where the policyholder pays the premium, and the insurance company pays the losses stated in the policy. Medical, property, and liability coverage is provided by auto insurance.
Medical coverage
Pays for the cost of treating injuries and funeral expenses if it comes to that.
Liability coverage
advocate the policyholder’s legal responsibility to those inflicted with bodily injuries or damages to properties like fences, buildings, or utility poles by reimbursing the payments required to amend the damages.
Property coverage
pays for damage to or theft of the car. When you get an auto insurance policy and have chosen a preferred coverage limit of your choice and deductible, you will have to pay a deductible before your policy coverage would occur when you get into a car accident. Deductible amounts range from $250,$500, $1000. The rate of a deductible is directly proportional to the auto insurance rate. Viz. An increase in deductible lowers the auto insurance rate, and you would have more out-of-pocket claims cost and vice versa.
Factors that influence the price of auto insurance:
• Driving experience: The length of time you have been driving would affect your auto insurance, especially if you are still young.
• Age: Young drivers pay more than older drivers.
• Criminal conviction: If there is any criminal conviction in your record, you would be considered a significant therefore would have to pay more.
• Location: The price might vary from one location to another.
• Annual mileage: The more time you drive the greater the chance of an accident; hence the number of miles you drive per year could affect your insurance premium. Low mileage drivers are those who drive less than 7500 miles per year. United service automobile association (USAA) offers the lowest representative rate for a driver profile with low mileage car insurance. The insurance group your car is in influences the price because several groups adhere to different policies.
• Occupation: A few jobs are considered to be riskier than others and hence might increase risk or exposes the car to damages. The cheapest insurance companies for seniors are; USAA, Geico, State farm, travelers, American family, Nationwide, All-State, and progressive.
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