Car insurance is relatively complicated because it can cover different things and cost different amounts. When the accident occurs and you really need
In the USA, it is the law that you must have motor insurance on all cars that are registered in your name. You take out motor insurance in connection with buying a car that is not parked. The US Department of transportation will invoice you afterwards if you forget this. The penalty fee is much higher than the insurance premium, so you should not neglect this. This is one of the reasons why it is important to familiarize yourself with this with car insurance before buying a new car. This way, you can make a well-thought-out decision, even if it is in a hurry.
Car insurance is relatively complicated because it can cover different things and cost different amounts. When an accident occurs and you really need your insurance, it is important that you have made the right choice. In this guide, we will go through different types of car insurance and how to choose one that suits your needs.
What determines how much car insurance policy costs?
The market for car insurance is large today. It pays to compare car insurance offers with several players before you decide which one to take out. The price of insurance depends a lot on your car. Its age and value are decisive for how much you have to pay for car insurance. If you have previously been involved in accidents or other insurance matters that have meant that you have received money from the insurance company, you will receive a more expensive insurance premium.
Many insurance companies also consider factors such as how long you have had a driver's license, your gender, how old you are and where in the country you live when they set their prices. If you live in Stockholm, you can expect to pay as much as 75% more for your car insurance than if you live on Gotland. How you park the car next to your home can be important. You get a lower premium for your car insurance if you park in a locked garage than if the car is on the street inside the city. It is statistics that form the basis for prices.
How quickly a car wears out depends a lot on where you drive it. It is, for example, a fact that cars driven where the roads are not salted last longer and that the risk of theft is greater in large cities. That young and inexperienced driver pay a higher price for their insurance is also quite reasonable if you think about it. The limit for when you are no longer considered young and experienced usually goes at 24 or 25 years of age.
What type of insurance should you choose?
You have a lot of freedom when it comes to how strong insurance coverage you want. If you make the assessment that you may need to repair your car from time to time, it is a good idea to invest in stronger protection than if you only drive the car sparingly and very carefully. If you do not have the margins for a major repair of the car, it only costs a few hundred bucks more a month. If you have had a car for a long time and do not drive that much, you can save a few thousand kroner a year on cheaper insurance. For many, it is about a choice between full and half insurance.
The simplest form of car insurance, ie the one you must have by law, is called motor insurance. In the event of a car accident, the motor third party liability insurance covers damage that you cause to another car and personal injury that you have caused. However, not the damage that occurs to your own vehicle.
The difference between full and half insurance
In addition to motor insurance, full and half insurance are the main types of car insurance that you need to know. The differences in both price and the protection you receive are quite large so it is important to choose the right type of insurance.
If you have half insurance, you will get your money back if your car is stolen or if you need emergency services. It also takes effect if the car is exposed to damage to the engine or electronics in the car. Half insurance also covers damage in connection with the fire and if the windows break due to, for example, stone chips. Many people who have a newer car choose half insurance. Partly because the risk of damage not covered by the protection is less, but also because new cars normally have a car damage guarantee from the manufacturer. The risk of car damage is otherwise a good reason to choose full insurance.
With full insurance, you have, in addition to the protection that half insurance provides, the right to receive money in connection with the body being damaged in the form of, for example, dents and scratches in the paint. Sometimes you are required to take out full insurance in order to be able to lease a car or be granted a car loan with the car as security.
Other car insurance
Some insurance companies that offer car insurance may offer other car insurance than full and half insurance. A "large car insurance" is a service that can give you the right to compensation in the event of passenger compartment damage, if you lose the car key or if damage occurs to the driver or passengers in connection with an accident. Large car insurance can also apply when you drive a rental car. Large car insurance costs significantly more than full insurance but is also nice extra security.
Another type of car insurance is in the middle between half insurance and simple motor insurance. It gives you some parts of the protection you get with half insurance but does not cost as much. Often you can also have full or half insurance as a basis but then make additions for specific events. Think about what you want for protection and make sure you get insurance where you pay for exactly what you think you need.
As we have already mentioned, you can often customize your insurance coverage by adding a number of extra insurances. Reduced deductible in the event of a wildlife accident is an example of supplementary insurance that some companies offer. You can also supplement your car insurance with assistance insurance which means that you are entitled to continued travel if the car breaks down, perhaps by the insurance company paying for a train ticket. Assistance insurance can also pay for hotel nights in connection with you having to stay in the middle of a trip. There are many more supplementary insurances than these two examples to choose from.
It is important to compare before choosing car insurance
The terms and compensation levels vary between different insurance companies. Even though there are a number of main types of car insurance, the protection can look different depending on which company you choose. There are also factors other than the insurance premium and how much you get out for various damages that determine whether car insurance is good.
How long it usually takes to get money out is one such factor. If you get free months in connection with you taking out the insurance is another. How much deductible you have to pay is a watershed. If the insurance premium is low, you often pay a higher deductible and vice versa. It is up to you which model you prefer.
Keep track of machine damage insurance
Always look at how the machine damage insurance is designed when you compare car insurance. It usually applies a certain number of miles. Especially you who have a car that is 8-10 years old should read the terms and conditions of the machine damage insurance carefully because the differences are large. If the car is older than that, you can not count on receiving compensation for machine damage. If, on the other hand, you have a new car, it does not matter which car insurance you choose in this respect. This is because all insurance companies then pay equal compensation.
Different maximum amounts for the extra equipment
If you provide your car with expensive extra equipment such as lavish rims and premium tires, you should not expect to receive full compensation for damage to these. You will also not receive full compensation if you are robbed of an expensive music system in the car that does not belong to its standard equipment. Some insurance companies give you more in compensation than others when it comes to extra equipment. They simply have different high maximum amounts for what you can get out for damage to it. This is something that is worth checking out if you want to be sure to get good car insurance as possible.
How to use your car insurance
If the car breaks down, it is important that you make a damage report quickly so that the insurance case can be started. It makes it easier if you have a form for this available in the car. In the event of an accident with another car involved, you can sign a damage report on-site and write down your versions of the course of events. This makes processing faster.
Follow the rules - otherwise, you may be without compensation
An insurance contract is an agreement where you must live up to certain conditions in order to be entitled to receive money on the insurance. If you, as an experienced car owner, are the owner of a car that is used regularly by a teenager, who himself would have had to pay a higher insurance premium, you are not entitled to compensation, for example. The same applies if your car is insured in a municipality where it is cheap with car insurance even though you drive it in Stockholm. Insurance companies are good at seeing through the most common scams.