It’s a nice winter’s day in the city, the sun is shining and little snowflakes are falling gently on the windshield of your car as you finish up your Saturday errands. All seems to be going fine until you reach the intersection and then BAM you hit a patch of black ice and bump into the car in front of you.
This is a situation I’m sure many people have experienced or at least have heard stories about through family and friends. Whether you’re a beginner or a seasoned driver, it’s always prudent to be prepared for the unexpected and this starts with understanding how car insurance works as well as how it can help you out in sticky situations like the one previously described.
Here are all the basics you need to know about auto insurance and a few tips on how to use it effectively.
Why Do You Need Auto Insurance?
Believe it or not, if you own a motor vehicle, there are countries that actually require you to have it insured by law, such as Canada. The only exception is for some motorized bikes and electric scooters. The reason why having auto insurance is mandatory is that it can help protect you from having to pay for repairs if your car has been in an accident.
When you visit this website, you’ll learn that auto insurance can also protect you from liability claims if you’re held responsible for causing the accident. So whether you are the one who caused the accident or are on the receiving end of it, auto insurance makes the whole process a lot smoother; better might as well get a high-quality plan.
Who Will An Auto Insurance Plan Cover?
In the case of an accident, in general, your auto insurance plan will cover whoever is driving the car, the passengers and even other people that are involved. So even if you were driving around with a few friends and your car got bumped everyone is covered, after all, wouldn’t it be a pain if every time you carpool all your friends would need an insurance plan on your vehicle as well?
In addition, to covering the person who uses the car most often, your plan should also cover additional drivers like family members who use the car occasionally. So if your son ends up borrowing your car to get to their part-time job on the weekend you can have peace of mind that they will be covered.
What An Auto Insurance Plan Covers
Auto insurance plans can cover much more than simply car accidents, they can also cover other damages to your car like vandalism that occur in the car. Plans can offer accident benefits which are essential in the case that you ever get injured in an accident as it will cover any medical expenses and even loss of income caused by the accident; talk about a saving grace!
Collision insurance is often part of many plans as it can help save your hard-earned money by covering any repairs or even fully replacing your car if you get hit in an accident. Comprehensive insurance is great for when life sends you an unexpected curveball as it can cover car theft or even the damage to your windshield that was beyond your control. So you ever find yourself frequently going to the seedier areas of town, make sure to ask your insurance broker about comprehensive insurance.
How Insurance Premiums Are Calculated
Many factors influence how much an insurance plan will end up costing you. Things like your age, gender, where you live, what sort of car you drive, your driving record and even your history of past claims will influence your premium. For instance, if you’re a male under 25 years old, your premium will be more expensive than for a male who is over 25 years old.
Similarly, if you’re driving a BMW, your premium will be more expensive than if you were driving a Toyota. Your driving history can also have a big impact on your premium, so the fewer accidents you’ve been in and the fewer demerit points you’ve incurred, the better rates you’ll get.
Hopefully, now you’ll have a solid overview on why you need insurance and how it can help you out in any sticky situation involving your cherished car. Remember, getting a proper auto insurance plan is key to saving both your time and the money in your wallet in the case of an unexpected accident, so make sure to find a plan that fits your specific needs.
This can be done as easy as reaching out to your current insurance broker and seeing what your current plan covers or if you’re shopping around just call up an insurance company and tell them what you want covered. Happy and safe driving!
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