Your First Car And The Insurance That Will Follow

January 3, 2017 · Posted in General Articles on Car Insurance 

The vehicle you have or will purchase is one of your largest purchases you will ever make, next to buying a house. You never really thought of it as that big of an investment did you? Statistics prove that an average homeowner will switch homes two to three times throughout a lifetime, while an average car owner will switch at least ten times, making your car and its insurance extraordinarily important.

The law requires that every car on the road is insured. Basic insurance or compulsory insurance only covers any other cars for damage and repairs in an accident that is defined as your fault. If your car is also damaged, the costs will come out of your own pocket.

The law requires that every car on the road is insured, which leaves you no choice but to take out compulsory insurance unless you want to get fined or imprisoned heavily for ignoring the insurance. Compulsory insurance only covers the other vehicles involved in the accident if you are the one held responsible for the accident.

When accidents do occur, they are often deadly and tragic. The vehicles are usually demolished and totaled, and if fixable, they will cost a lot of money!

If you do not have comprehensive insurance when an accident occurs, you’re left with two options. Fix the damages if applicable, buy a new car, or go without one.

However if you are covered by comprehensive car insurance, the damages are covered by the insurance agency.

Insurance premiums are not extortionate; instead they are calculated on an annual basis and should run at about 6% of the replacement value of your car.

For someone like you who is buying their first car and contemplating the fact that their comprehensive car insurance policy seems like a lot of money, then it’s important to realize that you have no choice. Insurance providers look at the value of the car as well as the age and experience to calculate insurance premiums.

Comprehensive car insurance will cover anything from accidents where you are at fault, to accidents where no one but yourself was involved, or cases of theft. It’s very important to cover yourself from damages incurred via theft.

As you can see, ignoring comprehensive car insurance is a grave mistake. Save yourself the hassle and spend a little extra every year on your insurance policy.

 

Car Insurance Search

Comments

Leave a Reply

You must be logged in to post a comment.