Signal Of Forex

Importance of Car Accident Insurance

Posted by Tricking Sunday, October 18, 2009

Car Accident Insurance companies as with any other insurance companies may deserve some of the bad reputation they are getting because they do look out for their own benefits like any other private companies in any industry.

However, they do fulfill an important role especially for people who own a car. Car accident insurance protects you financially from future liabilities.

They act as a safety blanket for your finances in case you get involved in a car accident.

Car accident insurance is a contract between you and the insurance company; you pay the insurance company now, they pay for your car expenses in the future.

Car Accident Insurance coverage

There are various types of car accident insurance ranging from required to optional plans. But before you choose any type of car accident insurance, the first thing you should do is check the type of coverage the plan offers.

Here are the basic types of car accident insurance coverage:

• Liability Coverage – This is required to all car owners in most states. This provides compensation for injuries and property damage caused to others. This includes medical expenses, loss of wages and pain and suffering.

Remember, this covers the expenses of the other people involved and not yours. In addition, you have to be the one at fault for the insurance company to pay.

• Personal Injury Protection – This is optional. It does not matter who is at fault, this covers the medical expenses of both you and your passenger for injuries you sustained after a car accident.

• Collision – Also optional, it covers the repairs needed for your car after a car accident.

Car Accident Insurance Rate Factors

Car Accident insurance rates vary from each case. There are different factors that affect the rates for each person.

Here is a list of some of the general factors that are used to determine car accident insurance rates:

• Age – According to statistics, drivers that are below 30 years old are more likely to be involved in a car accident than other age brackets. Therefore, car accident insurance rates for younger drivers are higher.

• Gender – Similar to age, statistics also show that men are more likely to be involved in a car accident than women. Therefore, men have higher car accident insurance rates than women.

• Type of Car – The more expensive the car is the higher the car accident insurance rate will be. Expensive car repairs are more expensive and it has the higher risk of being stolen.

• Location – Car accident insurance companies also consider your location as well. That is because the risk of car accidents increase in heavily populated areas.

• Driving Pattern – The more a car is driven, the higher the car accident insurance rate is.

What to do after a car accident?

Here is a guide of what you should do after a car accident:

• Call your insurance company as soon as possible. There may be a time limit on when you can inform the insurance company. Better be safe.

• Review the coverage given by your car accident insurance so that you know what to expect.

• Report the accident and get a copy of the police report.

• See a doctor and get yourself treated. Get a copy of your medical documents pertaining to your injuries.

• Do not release statements to insurance companies without a lawyer.

• Consult a personal injury lawyer to help you get the best out of car accident insurance companies.


by: Mark Dacanay

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