Car Insurance – Know More About Premiums and Accountability

Auto insurance is a great liability unless you manage it well. In an effort to improve their driving skills and prevent accidents, many drivers now show enthusiasm in installing monitors that can record their driving habits. Though major accidents are a rare occurrence, you still have to cover your smaller losses and it pays to know about your extent of insurance cover.

You must take precautions about the insurance companies as well, as we have witnessed extraordinary cases, reported in the social media, where insurance companies supported the opposite party to absolve themselves of heavy liability to their own insurance client.

Your driving record is directly proportional to the insurance premiums you pay. Some ingenious entrepreneur has developed an innovative calculator that calculates 14 categories of driving violations that result in an increase in premium, starting with reckless driving reportedly accounting for a 22% increase, while seat belt violations cost you a 3% enhancement.

You must also consider the risks of renting your car to rank outsiders even on the reliable assurance of specialist auto insurers that will do all the background check for you and offer a real insurance cover of US dollar one million for accident costs. But consider what would happen if there were more claimants (those who shared the rented car) in the accident, which pushes up the claim well over the agreed $ 1 million, and puts the car owner under risk of liability for the sum that exceeds the agreed amount. You must therefore exercise utmost caution and fret about the implications of liability insurance before you rent the car to others.

Remember, your normal insurance company will not reimburse you if an accident occurs, which is why you went after the specialist insurers for renting insurance. When you rent the car out you cannot dismiss the unexpected presence of shared passengers or an accident that may result in the unfortunate death of a third party that puts your liability even more at risk.

When looking for car insurance, remember that it is not only your driving record that counts for the premium increase, but also the type of car you intend to buy, and that model’s crash frequency figures, repair estimates, cost of full replacement and the record of claims for injuries.

The concept of car rentals on sharing basis is catching on fast, both from the point of view of the total absence of liability of not owning a car, and the several benefits associated with this move that prompts people to cut their risks and liabilities by owning less property.