Auto insurance is required by law for anyone who purchases a car in any state in the US. Anyone who is caught driving a vehicle without auto insurance faces heavy fines and possible jail time. In addition, your car can be seized and impounded. The total in fines, impound fees and bail to get out of jail is far more than the cost of the insurance. Another good reason for auto insurance is to cover you if you are involved in an accident, causing damages and injury to someone. If you are adequately covered, and you get sued for millions of dollars, the insurance company will have attorneys to represent you and handle the claim. Otherwise, you stand a chance to lose everything you own, and more! So, if you're going to drive, be sure to have insurance!
The main reason the law requires you to have auto insurance is to cover damages and injury to others as a result of a traffic accident. This is very important as the damages and medical expenses can be very expensive. If you cause an accident that injures or kills someone, are you able to write a check to compensate them for their loss? Most likely, the answer is "no way!"
There are several types of auto insurance coverage to choose from, depending on the value of your vehicle and how much you face losing in the event of a serious accident resulting in a lawsuit. You may choose the bare minimum, PLPD (Personal Liability and Property Damage) coverage, which covers the injured party, but not you. If your car has no real cash value, then this may be the coverage to choose. If you drive a very expensive car, or the car is financed, you will be required to carry full coverage, which will cover the balance owed on the vehicle should it be totaled in an accident. There are also policies that cover theft of your vehicle.
The cost of the insurance depends on the type of policy you choose, the make and model of your vehicle, its value, the area where the car is parked at night, your driving record and how many miles you drive annually, to name a few. There are many factors used to calculate automobile insurance rates. Different companies have different rates, so it is important to get several quotes before purchasing automobile insurance. It is also important to be sure the company you choose to work with has a good reputation for handling claims. Most people get referrals from friends and family who already have a relationship with an insurance agent. A good insurance agent will explain all options and ask the appropriate questions about you to be sure you are adequately covered.
If you're in the market to purchase a car, be sure to visit your insurance agent first, to be sure the cost fits your budget. Studies have shown that some vehicles are more commonly stolen than others. Some vehicles are rated safer than others in the event of an accident. Check the "crash test" ratings on the models you have in mind and see your insurance agent for more information and advice. In any event, buckle up and maintain proper automobile insurance now to avoid stiff penalties and fines, jail time, loss of your driver's license and a nightmare down the road!
This article was written by Ted Lewicki, a Farmers Insurance agent located in Waterford, Michigan. Ted has been an insurance agent for nearly 50 years. He has been a member of the Better Business Bureau with no reported complaints. Ted interviews his clients to learn just what type of policy they need so that they are adequately covered in the event of an unfortunate accident where they may be sued. http://www.a-oneinsurance.com/ services Oakland County, Michigan with many clients in Waterford, Pontiac, Rochester, Auburn Hills, West Bloomfield, Keego Harbor, Milford, White Lake, Walled Lake, Wixom and neighboring cities and communities.
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