Car Insurance Companies take into account a number factors about you and your driving record when considering your application. The fact that you apply with a certain insurance company does not mean you will be accepted by that company. When car insurance companies consider your risk “unacceptable” you will be declined. Since liability car insurance is required throughout the United States, this can create a problem for many drivers.

A car insurance company cannot limit, deny, refuse to renew, or charge more for coverage because of your religion, race, color, or national origin. A company also cannot limit, deny, refuse to renew, or charge more for coverage because of your marital status, age, gender, domestic partnership status, disability, or partial disability unless the limitation, refusal, or higher rate is “founded on sound underwriting or actuarial principles”. Also, a company cannot unfairly discriminate between persons of the same (rate) class and basically the same hazard (risk) in its policy terms, rates, benefits, or in any other manner unless the limitation, refusal, or higher rate is “founded on sound actuarial precepts”.

You are responsible for the losses of other people, if you cause a car accident. A lawsuit or claim may be filed against you for those losses. You will be responsible not only for the property damage you cause, but also for the medical expenses, pain and suffering, and lost wages, of any injured person. The amount you may have to pay could be significant.

If you are without car insurance, any assets you have, including your house, savings, subsequent wages, and anything else of value, may be seized to pay for those losses. Car insurance can protect you so that this may not happen. Liability insurance will also pay for a lawyer to defend you against any lawsuit or claim of negligence that may be payable under the insurance policy. You can also purchase insurance that covers your medical expenses and damages to your car, whether you were at fault or not.

Auto Insurance is based on the principle that only a small percentage of drivers will be involved in an accident. The premiums invested by all drivers are used to cover the losses of those drivers who do have accidents. When you purchase insurance, you benefit from financial protection in the event that you are involved in an accident. You will also be covered financially and morally for the loses you cause to person injured and property damaged through your fault.

car insurance companiesFinancial responsibility laws were conceived to make sure that any licensed driver has liability insurance or ready money to pay for damages to others caused by his/her motor vehicle. These requirements may be satisfied by policies through car insurance companies, self-insurance or surety bonds.

Generally, only expenses within 1 year of an accident are covered. Liability coverage provides benefits for a friend, or a neighbor injured in your car. Medical expense coverage is an optional coverage. Car insurance companies must offer this coverage to you, but you do not have to buy it.

Collision and comprehensive which are also known as physical damage (PD) coverage pays for the repair or the actual cash value of your auto regardless of who is at fault. Collision coverage pays if your vehicle crashes into an object, including another auto, or if it overturns. Your own insurance company will pay for this damage even if the accident is your fault.

Premium rates for collision insurance are based on the model, make and year of your car. You should assess the current market value of your vehicle and your ability to pay for a similar car should it be destroyed before you buy this coverage. You may not want this coverage if your car has diminished in value or if you can easily replace it.

Comprehensive insurance covers damage to your vehicle from almost all other causes such as vandalism, fire, glass breakage, water, hail, wind, civic commotion, falling objects, or hitting an animal. Damage caused from striking a deer is fairly frequent in some parts of the U.S.

Comprehensive coverage pays if your car or parts of it, such as a battery or wheels, are stolen. Flood damage is also covered under comprehensive. Collision insurance does not cover flood damage, theft, etc. If you are still paying on your car, the lender will require you to buy physical damage coverage to protect both your and their interests in the car.

Gathering car insurance quotes and comparing rates is well worth the time. Rates are based on a number of factors, and vary from company to company. Cheaper car insurance can save you hundreds and even thousands of dollars.

Uninsured motorist coverage pays medical expenses for you, your family, and any other occupants of your car when hit by a hit-and-run driver or uninsured motorist. It will also pay for you and your family when hurt as a pedestrian if hit by a hit-and-run driver or uninsured motorist. It makes sure that money is available to pay for your expenses and loses caused by someone else. The usual minimum amounts of coverage required by law for medical is $25,000 per individual and $50,000 per accident. You may want to consider more than the minimum required by law since doctor and hospital bills can run much higher.

Uninsured motorist does not cover property damage and does not protect the other operator. Your insurance company may sue the other operator for any money the company pays you because of the other’s negligence.

Underinsured motorist (UIM) is an optional coverage that boosts the medical protection to you and the people in your vehicle up to the specific amount of coverage you buy. It kicks in when the party at fault has lower medical liability limits than your UIM limits. The maximum paid is then the difference between the two limits. Car insurance companies are required to inform policyholders about UIM coverage. The minimums of UIM coverage are generally $50,000 per person and $100,000 per accident.

Medical coverage pays for medical or funeral expenses for you or anyone injured or killed in an accident while driving or riding in your car. This includes all “reasonable” surgical, hospital, rehabilitation expenses, chiropractic, x-ray, professional nursing, dental, and prosthetics up to the insurance limits.

Automobile medical insurance usually covers only expenses that are not covered by health insurance, deductibles, copayments, etc. It also covers expenses for you or your family if struck by a vehicle while walking, or while riding in another car. Important items in detrmining your rate are:

  • Age, sex, and marital status: Young, single male motorists pay more than any other group.
  • Where you live: Your state is classified into zones for rating purposes. People in cities pay more than those in the country.
  • Your car: The make, model, and year of your vehicle have a bearing on your premium. The less it costs to replace or repair your car, the less will be your premium. Cars with turbo engines and sports cars cost more to insure than autos with smaller engines.
  • How you use your car: Drive more and pay more.
  • Prior insurance coverage: Car insurance companies are interested in knowing if you had insurance coverage before. Insurers want to know if you have been canceled for not paying your premiums. And, a previous insurer can tell the new insurance company about any claims history.

If you have been checking car insurance quotes online or by phone, and have had no luck finding a company to insure you, Direct Car Insurance specializes in “high risk” as well as motorcycle insurance. They don’t require a checking account or credit card.
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