Your car may be white, black, blue, green, but you must have coverage! Auto insurance is sometimes known as vehicle insurance. And, in some countries and in some states in the United States, to get an auto rate is compulsory. The public officials in these places saw the necessity of making this compulsory among the citizens who owned cars. Even if you don't reside in these places, auto coverage is still important.
Auto insurance policy as a state policy was implemented due to the fact that numerous accidents happen every single minute in the road. From a slight road mishap to totally faulty driving, you may cause to damage your own car or another vehicle or even others property. Thus, to ensure that whatever damages will be settled and people who sustain damages will be fairly compensated, the car insurance is regarded as a must buy insurance for all vehicle owners in many states now. Not only in the United States but also in several countries, the coverage policy is strictly complied with. There are also countries that offer insurance as an option but people still go for it because of the benefits to have their cars insured.
In places wherein coverage is compulsory, penalties are very high that it is foolish to go against the law. Other effects of this strict policy these residents going green with envy. Green auto insurance protects owners form losses incurred because of accidents on the road. These policies usually cover the insured party, the insured vehicle and third parties. Auto coverage can be made to cover against theft, fire, flood etc. There is nothing to envy about people who aren't compelled to get insurance. They might not have high penalties but once an accident occurs, they will have to pay for it. Usually, people just get auto insurance on their own volition.
Some factors that affect the premium rate are sex and age. Some companies believe that men drive more; hence they are more exposed to accidents. As a result, premium on women are lower. Aside from that, teenagers that don't have driving records get higher premiums. But there are countries who offer a greener grass. Green auto insurance for teenagers and students are discounted in the U. K. if you take further training on driving and in the U. S. , students who have good academic records get discounts. Senior citizens pay lower premiums because insurance companies believe old people don't drive much anymore.
Anthony Thedford has been writing information articles for years. For more information on insurance, please visit our website at http://www.infosearchlive.com/insurance/