Insurance Info Center

While purchasing a vehicle it is mandatory to purchase the auto insurance also. Most auto selling companies can issue auto insurance along with the sale of the vehicle. There are different types of auto insurance. You can buy insurance for mishaps or for theft or fire. You can buy all of them together or buy independent insurances for each cause.

Buying insurance is signing a contract between the insurer and the insured. This is done for a consideration which is known as premium. This is a fixed amount paid at fixed intervals by the insured person. It is decided at the time of purchase of the insurance. The insurance premium will be decided by various factors. There are certain regulations governing the decision. The premium varies depending on the expected cost of future claims. Car characteristics, the coverage chosen( like deductible, limit, covered perils etc), the age, gender and driving history of the driver and the usage of the vehicle , the expected distance driven and others.

Statistics show that men usually drive more than women and naturally have a higher accident involvement. Also women are reported to be more careful drivers. Hence the premium for young women may differ from that of men while in the older age group the difference may not be much. However there has been some confusion over the ‘women’s discount’ for insurance premiums and there was a proposal to make it illegal to consider gender while assessing premiums.

Teenaged drivers are generally rash and hence they may need to pay higher premiums. They may be offered discounts if they undergo driving training on recognized courses like Pass Plus in the UK. Those with good driving records may also get discounts. Retired drivers may have to pay lower as there is a lower average driven by people of this age. Unmarried drivers have to pay a higher premium than married ones. If the vehicle is used daily to commute for work, the premium may be different than if it is used only occasionally.

The make of the vehicle also decides the amount of premium to be paid. Sports car, muscle car, sport utility vehicles and motorcycles have higher insurance premiums as compared to compact or luxury cars. In a mishap, the motorcycle will not cause much damage to the other vehicle hence the premium for liability insurance can be lower.
If there has been a mishap or a theft of the vehicle or fire has burnt it and you have the necessary insurance you should immediately contact the insurer and put in your claim.