While it might look so from the first-time driver and car owner’s perspective, having your own set of wheels isn’t all fun and games. In fact, it entails a whole lot of responsibility that you never had to manage before. For one, you will need to get insurance for your car; your bank and the law will require you get one. You need the coverage, too, in case you get into an accident. Here are some important facts about auto insurance:
High risk, high premium
Insurance providers weigh how much their clients can get and have to pay based on the extent of driving risk their daily lives entail. For one, an ordinary adult cruising the urban streets to and from work will have to pay less premium than one driving a Porsche with a bad driving record. Also, young drivers tend to have higher rates.
Full Disclosure
So how exactly does your insurance provider determine your risk profile? They will ask you a series of personal and professional questions which you will have to answer truthfully. You could end up having a claim denied in the future if you don’t fully disclose what the insurance company expects you to be honest about.
Exclusions
You should always know everything that’s stated in your car insurance coverage, especially the part about exclusions, as you might end up paying for something out of your own pocket. Basically, the exclusions entail the types of damage that you can incur which your coverage will not pay for.
High risk, high premium
Insurance providers weigh how much their clients can get and have to pay based on the extent of driving risk their daily lives entail. For one, an ordinary adult cruising the urban streets to and from work will have to pay less premium than one driving a Porsche with a bad driving record. Also, young drivers tend to have higher rates.
Full Disclosure
So how exactly does your insurance provider determine your risk profile? They will ask you a series of personal and professional questions which you will have to answer truthfully. You could end up having a claim denied in the future if you don’t fully disclose what the insurance company expects you to be honest about.
Exclusions
You should always know everything that’s stated in your car insurance coverage, especially the part about exclusions, as you might end up paying for something out of your own pocket. Basically, the exclusions entail the types of damage that you can incur which your coverage will not pay for.
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