When you first buy a car, you may spend a long time thinking about the model you want to get and the physical features of the vehicle. However, the process does not stop when you buy the car and there are many other things to consider in order to make sure that you are legally allowed to drive your car on the road. Some of these entail undertaking regular maintenance checks, vehicle registration and car insurance.
All of these requirements are mandatory by law, no matter where you live. Therefore, it is crucial that you know exactly what the law requires from you as a driver and car owner before you decide to start driving. In this article, we will focus on advising you of essential things you need to know about car insurance.
What is Car Insurance?
Every driver requires insurance before they can start legally driving, however, not everyone knows exactly what this entails. Insurance essentially covers you as well as any other named drivers on the policy, for any incidents that may occur whilst you are driving, such as road accidents. Collisions often result in some damage to the vehicles and injuries to the individuals involved, having insurance means that the insurance company can help you cover the costs, instead of you having to pay this all on your own.
What Type of Car Insurance Can I Get?
There are different car insurances that cover different factors for drivers. We give a brief explanation of what the available different covers below:
Third party – This type of insurance covers the very minimum required to allow you to drive your car on the road, and it is the most basic one you can get. It essentially covers other drivers for any damage in an accident that was your fault.
Third party, fire and theft – This cover is basically the same as the one described above, although it also covers you if your vehicle gets stolen or if it is destroyed as a result of a fire.
Comprehensive – This one is the most inclusive cover to obtain, and usually the most expensive. A comprehensive insurance includes the same features as the insurance plans above but it will additionally cover damage to your property and others, even if it was a result of your own negligence.
What Happens if I Don’t Have Car Insurance?
We mentioned above that car insurance is a requirement by law, therefore failure to do so can incur several penalties on you as a driver. If traffic law enforcement stops you whilst driving without insurance, you may be charged with a felony and required to pay a heavy fine and also get your vehicle impounded. It does not matter whether you do not use the car on the road very often or if you only drive short distances. Car insurance is not simply another useless cost for you – If you were to get involved in a road accident without the appropriate car insurance, you would be expected to cover all costs yourself, therefore there is no point in risking it.
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What Factors Affect the Cost of Car Insurance?
One of the main reasons people fail to insure their vehicle is due to the high cost, particularly for new drivers. Depending on where you live, car insurance can mean monthly payments that your financial budget just can’t cover. Every driver will pay a different amount of money towards their insurance, and this is due to everyone’s individual circumstances. Below are some the factors that will contribute to how much your cover will cost you:
The car you drive – Before you buy a car, it is important that you think about how it will affect your insurance. A very old car is likely to be expensive to cover as it may break down on the road and even cause accidents. On the other hand, insuring a brand new car is not cheap due to the amount of money it would cost to repair should you be involved in an accident.
Driving Experience – It makes sense that less experienced drivers are more prone to being involved in accidents, as they do not have the experience that allows them to safely avoid these situations. This is why it is so difficult for new drivers to get their own car and start driving.
Age – The younger you are the more money you will be expected to pay towards your insurance. This is because of what we discussed above, as you are less likely to have experience. Although elderly people are also on the high end of payments when it comes to car insurance, due to their health issues, such as poor vision and reduced reaction time, that can make them more prone to accidents.
Insurance Company – Not every company will offer the same rates to drivers, and it is suggested you read more here for further information. Consulting with different insurance companies is crucial so that you can compare prices and get the best one for yourself.
Your location – If you live in a highly populated area, where there are many cars and congestion, there is a higher probability of accidents happening, therefore your insurance rates will be more expensive.
Gender – Studies suggest that males tend to drive more than women and also engage in more risky behaviour when on the road. This makes insurance premiums more expensive for males than it is for females.
Driving Record and Claims History – If you are a driver who has had a few accidents or have been found to be driving under the influence of drugs and/or alcohol are deemed as a risk by the insurance companies, and more likely to get involved in an accident. Therefore, rates will be higher.
Car insurance is crucial in order to protect you and your vehicle as well as other drivers, whilst you are on the road. Make sure that you read the above to know a few essential things about car insurance.