Put simply it is essentially a contract between you and an insurance company. You pay a premium, and in return, the insurer agrees to pay for any car-related losses detailed in the policy. Most states require that all drivers have a policy, or the ability to provide evidence that you have the financial resources to pay for injuries or damages. Severe civil and criminal penalties may be incurred if you do not have insurance, including vehicle impoundment, revocation or suspension of your driver’s license, lawsuits, fines or imprisonment.
How much you pay is determined by many factors – age, gender and driving history are some of the major ones. A person under the age of 25 will likely have a higher rate, due to the higher percentage of younger individuals getting into accidents. Also, men typically have higher insurance rates than women. As far as your driving history, if you have any prior accidents, traffic incidents or DWIs, your rates are sure to increase.
Something else that you have to consider besides the above-mentioned factors is where you are located, and what kind of vehicle you are driving. If you are in a big city, there are usually more vehicles and more potential for accidents, therefore rates will be higher. Certain states will have higher rates than others – New York, New Jersey and DC are typically the highest in the nation. A more expensive vehicle will have higher online car insurance rates due to the high cost of repair. Also, a vehicle that tends to be the target of more thefts or a vehicle that does not hold up well in crash tests will certainly cost you more to insure.
Generally, anyone who has permission to drive your vehicle is covered under your car insurance policy. All people who regularly use your car should be listed on your policy. You should check with your chosen company for specific details. All family residents of your household of driving age must be listed to protect both you and your carrier. Exclusions are available in some states for family members who do not require coverage.
We have researched online insurance providers quite extensively over the year. One entity that we can confidently recommend for very competitive rates on online auto insurance is 21st Century Insurance. They have been around for quite some time and get very good customer satisfaction ratings.
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