How much do you pay for insurance?
Without
doubt the price of your car insurance is asked every day by thousands of
people. We need a reliable answer and we must understand that there are many
factors which influence the cost of car insurance.
In general the
most important factors are related with the characteristics of the driver and
secondly the car.
The
characteristics of the driver such a driver’s age, driver’s marital status and
driver’s experience (previous accidents) and driver’s place of life influence
the cost of insurance.
Another
category of factors which influences the cost of insurance are related with the
type of the vehicle. The price of insurance tends to rise when you use to drive
a sport car or a SUV and tends to fall when you drive a car with a lower price.
The fundamental factor is the price of the vehicle, fancy SUVs and sport cars
are expensive and the premium for car insurance tends to be higher for this
category of cars.
The
components of car insurance
When we pay
for car insurance we buy a single insurance policy which covers a number of
components, the sum of all this components is the final cost we pay. In general
we pay for:
1 Bodily
injury liability
Bodily
injury liability (BIL) covers the cost of injury and death claims against you
in case of an accident also cover the legal cost if you injure or kill someone
in an accident.
2.
Property
damage liability
In case of
an ‘accident there is also a possible property damage the Property damage
liability (PDL) covers the cost of repairs of the other party’s vehicle.
3.
Medical
payments
Medical
payments (MP) cover the cost of injuries to yourself and the occupants of your
car.
4.
Uninsured
motorist protection
Unfortunately
streets are full with uninsured drivers. According to statistics about 30% of
drivers in United States
5.
Collision
coverage
The
Collision coverage (CC) covers the damage to a vehicle in case of an accident
up to its book value. The Collision coverage caries a deductible which is the
amount per claim the driver has to pay before the insurance takes effect. There
is a negative correlation between the collision and the car insurance premium,
the lower the deductible the higher the premium the higher the deductible the
lower the premium.
6.
Comprehensive
physical damage
Comprehensive
physical damage (CPD) covers the coverage to a car from theft, vandalism, fire,
wind, flood and other non – accident
causes.
