Whether you like it or not, car insurance is a necessary cost if you own a car. Depending on the cover, your car insurance is helpful with claims for damages for you and your vehicle, other people, and their property.
It is mandatory to have car insurance as a responsible driver, but you may not understand the terminologies car insurance providers use. You also need to consider several aspects when choosing car insurance coverage for your car. This post looks at everything you need to know about car insurance, why it is necessary, and what happens if you drive an uninsured vehicle.
What is auto insurance?
As you may already know, car insurance York pa is a legal requirement for any roadworthy vehicle. It covers financial costs if the car is involved in an accident resulting in injuries and damage. It can also provide financial protection to other drivers, passengers, or pedestrians involved in the accident.
Although car insurance regulations differ from one state to another, most states require a vehicle owner to have liability insurance to drive legally on public roads. The insurance company provides the vehicle owner with an insurance card for the specific coverage term, kept in the car as proof of insurance.
Why do you need car insurance?
Car insurance protects you from financial liability if you are involved in an accident that causes injuries and property damage. It covers the cost of repairs of a car you crash into.
Car accidents are devastating and can result in severe injuries and damages which you cannot imagine paying for out of pocket. Having car insurance gives you the satisfaction that repair costs and medical bills resulting from an injury due to a car accident are covered.
The insurance also provides financial protection to another person, whether a driver, pedestrian, or passenger injured in a car accident. Depending on your car insurance policy, it may not cover repair costs for the vehicle’s damage due to vandalism of the car or damage caused by other reasons.
How much do you pay for car insurance?
When looking for car insurance, the first task is to fill out an application form with questions regarding your car. The answers help the insurance provider determine your insurance premium. the questions include:
- The car type and age.
- Driving history.
- Your age.
- Where you live.
- The usage of the car.
- Additional drivers.
- Voluntary excess.
An expensive sports car will cost you more insurance premium than a ten-year-old car. Driving higher than the average mileage will cost you more if the vehicle is used for business purposes rather than commuting to and from work. Additionally, being a young and inexperienced driver may increase your insurance premium.
What happens to you if you drive an uninsured car?
It is an offense to drive an uninsured car, and you risk paying fines and getting penalty points on your license. If you have these driving convictions, you face higher insurance premiums in the future. If taken to court, you may be disqualified from driving, and the police have the authority to seize your car.