Understand Your Car Accident Insurance

As a car owner, one very important thing that you should have from the time you purchase a vehicle is a car accident insurance. This will protect you and your loved ones should you encounter a road accident. Being on the road driving a vehicle or even just riding on one exposes anybody to risks the reason you should never get behind your wheels without an insurance policy.

Accidents that involve vehicles can cause damage not only to your car but even to people. This then results in thousands of dollars in car repair and medical expenses. However, you can save on these costs if you have a car accident insurance policy. At least when you’re covered, it’s the insurance company that will shoulder your expenses more so if you’re the one found to be at fault.

Insurance firms differ in the coverage they provide to car owners. Several factors are taken into consideration from the car design to a person’s perceived risk.

Did you know that smaller cars require higher car insurance rates? The reason behind is based on the bumper standards. If you own a Mini Cooper, for instance, you are a high risk owner because of the fact that your car can easily be damaged owing to its small bumper. And being a small vehicle, its expensive components can readily be damaged during road crashes.

On the other hand, you will enjoy a good insurance coverage if you own a sedan or minivan. These mid-sized vehicles are considered safer on the road and require lower rates as they are less likely to get into costly accidents compared to the smaller cars.

On the personal side, the insurance rates of car owners normally vary from one company to another. Drivers who have past records of accidents or traffic tickets are normally given higher rates. In other words, each time you report an accident or you get involved in one and gets reported to authorities, your rate also changes.

This may lead you to ask if it would be better not to report the accident to the police or to your insurance company to protect your record. The answer is not in all cases. In some minor accidents where the other party involved is also open to a settlement, yes you may negotiate on your own. On the part of the insurance firm, they need to be informed right away of any mishap that you got into because even if you don’t, they will still find out about it later on.

Some of the common factors used by insurance companies in increasing rates are the severity of the accident where you got involved, the degree of fault, type of insurance claim filed by either of the party and the type of violation committed such as a ticket was given. Reports have revealed that those who usually get higher rates include drivers given additional traffic tickets and those who filed claims for car accidents.

The lesson to learn here is to always follow the rules on the road and that of your insurance company. In this way, you will get into less accidents and not increase your insurance rate.