Liability Car Insurance, Options and Rating Factors

Understand it’s importance and how to get started to prevent post-event trauma.

“Don’t be afraid to make mistakes. That’s how we learn.” We’ve all heard this one before. If we’re not getting a hard knock on our own heads, we’re learning from the experience of a friend’s acquaintance. But what happens when you make a mistake with consequences you cannot afford? What happens when ‘too late’ means just that? The solution to situations we cannot undo is simple: damage control.

If you’re an automobile user and by now understand the need to protect your income and state of mind, let’s start off with understanding auto liability coverage. Say you’ve had a bad day and none of your senses seem to be focusing on the road, and you accidentally knock into the rear of the car in front of you. If the situation involves you being negligent and results in bodily and / or property damage, auto liability coverage can protect you from the hefty monetary damages you are very likely going to have to pay.

On top of this, you should also be aware of the basic and usually mandatory types of liability coverage that you will need:

Bodily Injury: Some expenses that can be covered include on-scene emergency aid, medical expenses and consecutive services for physical and/or emotional injury, legal costs, compensation for loss of income and funeral expenses.

Property Damage: Vehicle repair, or any other repairs required on structural and stationary objects involved in the accident are some major costs you can protect yourself from.

Depending on the plan you decide to buy and the amount of money you want to invest in your monthly premiums, you may also want to consider the following:

Comprehensive Coverage: This helps to cover losses due to elements such as natural disasters, theft, fires and vandalism.

Underinsured Motorist Coverage: Should it not be your fault that the accident occurred and the driver involved is irresponsible enough not to have the insurance required, this will be useful.

Medical Payments: We also advise that you consider your own personal protection, during which you will be reimbursed for whatever medical expenses you incur while seeking medical help. Different plans cover you in different aspects in terms of medical coverage.

Collision: Pays for the damage you cause on the other vehicle, while collision pays for the damage totalled on your own car. This coverage type contains the most irony. It can be summarised as buying insurance to protect your car from yourself, which won’t be necessary if you don’t crash in the first place.
However, we know the inevitable can sometimes happen so here’s our advice.

Contact an agent, preferably someone who comes highly recommended by a highly reliable source, or get an insurance quote online. We recommend doing both.

Know More about Auto Insurance Discounts

Chances are you qualify for a discounted premium rate on your insurance. Find out where you to stand. Most companies offer discounts on auto insurance premiums, and provide an all-you-can-absorb buffet of information on their websites. If you haven’t the time to sift through incomprehensible jargon or weigh your prospects while web-surfing, we’ve done the work for you. To start, these factors give you a ballpark idea of what to expect from your insurance quote.

Gender

In general, females aged 18 to 25 pay less than their male counterpart within the same age group. This is because younger women have less moving violations and incur a lower rate of road accidents as compared to men.

Age

Experience comes with age. Typically, if you’ve had less than three years of driving experience, your premium may not exactly be cheap. After you’ve gone beyond this barrier, you may qualify for some form of a discount, which we will talk about further later. There are also delicious discounts if you’re an experienced driver, which also means you are 55 years of age or older.

These are some examples of Auto Insurance Discounts you may qualify for and should consider when discussing a quote with your agent:

For Safe Drivers

As mentioned before, after three to five years of safe driving (which relates to accident-free and zero to minimal moving violations), you may qualify for a discount, which varies among companies. Note that any additional drivers of the same vehicle will need to meet the same requirements. In other words, don’t share your vehicle with someone who has a leaning towards alcohol.

For Safe Cars

When in the market to purchase a car look for one that is equipped with factory-installed seat belts and an all-wheel, anti-lock braking system (ABS), airbags and anti-theft mechanism such as alarms. Trust us, all these translate to deep discounts.

Make Your Age Count

25-year old unmarried full-time students can qualify for a discount in some companies. This also applies to retirees and employed senior citizens who have clocked in at least a quarter of their miles.

Your Car Plays A Part

Discounts aside, the size of your premium can really depends on the car you drive. The lowest rates go to the most innocuous cars, and if your car reacts to minimal impact (read: it doesn’t do to well in protecting your safety on the road), chances are your liability charges are going to sky-rocket. Also, do that little bit of research and find out which cars have lower theft rates. Don’t drive a car everyone else is lusting for. It might look good, it just might not do good. In a nutshell, we recommend picking a car that protects your investments, to start with.

Where discounts are concerned, a newly-bought, never-been-titled car might save you some money. If you own an economy car, you probably already qualify for a cheaper rate. If you use your vehicle for work, there are discounts available for certain models of pick-up trucks, and farmers or ranchers who make their vehicles work for them on their property.

In summary, whether you’re a full-time student who got your first car as a birthday present or a retiree who’s discovered farming as passion you can monetize, there is probably an auto insurance discount out there you can qualify for. We’ve given you what’s available on the market, but it’s now your job to find out what applies to you in your state, and the best way to do that is to speak with your agent, find out your choices and opt for what will probably make your finances that much easier to handle.