To protect yourself from loss in the event of an accident you must purchase insurance. In the automotive realm this is an easy thing to do but there are a lot of options that you need to consider first so that you can get the most for your money.
You are bombarded everyday with advertisements from insurance companies on television, radio, magazines, and newspapers, not to mention the unasked for envelopes in your mailbox from insurance companies who know nothing about you offering to save you up to $497 dollars per year on your auto insurance.
Let’s look at some interesting insurance history first. In an ancient treasure called the Code of Hammurabi we find that in Babylon around 1780 B.C. that if a merchant ships cargo was lost, traders were protected from financial responsibility in exchange for 20 percent of the cargo’s value.
The first car insurance policy was written in England around 1895. The first car insurance policy in the United States was written in 1898. In the year 1927, Massachusetts became the first state to require mandatory automobile insurance. All fifty states now require automobile insurance but it is up to each state to determine the minimum amounts of required coverage.
Coverage- Certain coverage may be costing you more money than you need to pay. An example would be carrying physical damage coverage on a vehicle with a low value. Another example would be having double coverage when a health insurance policy is in force. Find a knowledgeable insurance agent to guide you in making these decisions. Always get more than one quote. Get a second and maybe even a third estimate.
The vehicle that you drive is generally the second most expensive investment that you have purchased and it should be protected by an insurance policy just as you have protected your home against damage. Did you know that it is a good idea to get an insurance quote prior to purchasing a vehicle as some fall into a higher risk category.
Adding additional vehicles on the same policy can help to reduce your rates with a multi car discount. The amount of miles that you put on a vehicle in a year has a direct impact on how much your insurance premium will be. MileMeter Insurance Company, based in Dallas Texas, sells insurance per mile and has over 100 pending patent claims.
There are some insurance discounts available to good drivers that year after year do not turn in any claims. These discounts are issued as a result of having a good driving record with a certain minimum amount of driving experience. A good student discount can help younger drivers with a discounted premium. Some things that cannot be controlled, such as age and sex, can impact prices also. Discounts for seniors can be attained by taking and graduating defensive driving classes.