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Auto Insurance

Why Car Insurance?

Many will suggest that you buy auto insurance that you can afford. Obviously, it’s not wise to over-extend yourself, but as you discover how good car insurance coverage works, you soon understand why it’s important not to get inadequate coverage. Below are some important points to consider about auto insurance:

Auto Insurance is Legally Mandated

Car insurance is required in just about all states with New Hampshire and Virginia being somewhat excepted, but even with them you’ll need to have proof of necessary financial resources should you be involved in an at-fault accident.
The expense of insurance is determined by several factors including:

Lapse of Coverage:

Insurance companies look unkindly upon licensed drivers who do not keep insurance coverage as they are viewed as inherently a risk. As a consequence, allowing a policy to lapse will often negatively affect the price you pay when acquiring car insurance.

Type of Car:

The Highway Loss Data Institute and other similar organizations keep records of accident statistics on different kinds of cars. Most insurance companies utilize this data to help in determining prices for coverage. For example, should your car you be costlier to repair, you will end up paying more as a result. On the other hand, if the car you drive is rated well for safety, this will positively affect your rates. If the car model is one known for being more often stolen, the insurer will take that into consideration as well.
All these various factors and more can lower or raise your car insurance premiums. Know this as you consider your auto insurance choices.






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