Automotive Journal

In most states throughout the United States auto insurance is compulsory. Some states, however, do not require an individual to buy auto insurance. For instance, the state of Virginia requires that residents pay $500 to the state annually per vehicle if they do not wish to purchase liability insurance for their vehicles.

If you choose to not have auto insurance then there can be some consequences. Third party insurance is most commonly the lowest form of insurance that a state requires, but if you don’t have that there can be penalties. Penalties of not having auto insurance include license or registration suspension and even revocation, a fine, and possibly even jail time.

Liability is a form of auto insurance coverage. Liability is available in either a split limit policy or a combined single limit policy. A combined single limit groups property damage coverage and bodily injury coverage as one. The split limit policy splits bodily injury and property damage into two separate payments. Another form of coverage is collision coverage. Collision coverage is coverage that provides payments to repair a vehicle that has been damaged. Collision coverage also provides payment of the cash value if the vehicle cannot be repaired.

Comprehensive coverage provides coverage for the insured’s vehicle that receives damage by something other than a collision. This would include theft, fire, weather, vandalism, or impact with animals. Another form of coverage is loss of use coverage. Loss of use coverage is also known as rental coverage. This coverage provides reimbursement on rental expenses associated with having an insured vehicle repaired due to a covered loss.

Formerly car insurance companies only paid for the cost of towing a vehicle if it was related to an accident covered under the insurance policy. Because of this car towing coverage or roadside assistance coverage was implemented. Car towing coverage pays for non-accident related tows.

There are a few factors that can determine the cost of insuring a vehicle. Men generally have higher rates to pay compared to women. This is because male drivers tend to have higher involvement in accidents then women do. Age can also affect how much you pay on car insurance. Generally teenagers with no driving record have higher car insurance premiums. If a teenage student has a good academic record it is possible for them to get a discount from their insurer. It is also common that insurance premiums will start to drop around the age of 25.

When your car is repaired under your insurance policy you have to pay a fixed contribution known as an excess payment. Compulsory excess is when you pay the minimum excess payment that your insurer will accept for your policy. A voluntary excess is when you pay extra in the event of a claim on your policy. It is possible to get a lower premium from your insurer if you pay an extra amount through voluntary excess.

There are all kinds of different coverage plans; the main thing to remember when picking one is to find the one that fits your lifestyle. If you really want you can take the cheaper way and go without auto insurance. Not having auto insurance could be more expensive in the end though if you’re not careful.