insurance policies
You might be new to driving or not, there are a few things to make every driving smooth and safe. One of them is getting your vehicle insured. But what does it really mean? It’s not just filling up those forms with essential details; signing on dotted lines and paying a fee yearly.

Getting insured means:

It is an exchange of monetary compensation (as a form of risk management ) for significant potential monetary loss to another entity;

Covering the vehicle against losses sustained because of accidents or theft;

Protection against conditional liabilities and debt settlement(if there is occurrence of death).

The ‘pooling risk’ system

It works as a large group of people wanting to be covered from anexact cost by paying a Premium. Using this system allows the company to operate profitably and at the same time pay claims when it arises since only a few do ever get into accidents all at the same time.

Basictypesof coverage on insurance policies:

insurance policies
Liability: it pays for a 3rd partypersonal injury and death related claims and damage to another person’s propertyas a result to an automobile mishap;

Collision: compensation for any repairs for destruction on the automobile.

Comprehensive: it protects the insured for the damage incurred as anoutcome of theft, vandalism, fire,
water, etc. But collision and comprehensive coverage won’t be a requirement if you’ve paid off your auto loan.

Additional protection might be included in theauto insurance quoteor not, yet here are the common add-ons:

Full tort/limited tort: giving up the right to sue or take legal action in an event of anmisfortune. But it’s not really a smart financial move.

Medical payments/ personal injury protection: it pays the cost of medical bills for the policy holderand involved passengers. However, not really necessaryif you already have a healthcare provider.

Uninsured/underinsured motorist coverage: another option regarding medical and property damage protection but for those motorist who has not availed this services.

Towing: assures fee in case the auto needs towing or cannot be driven due to the incident. Yet you can cut back on this if you already have a manufacturer’s roadside assistance.

Glass breakage: understandable already yet it’s not really worth the long term cost since many other companies already include it in their collision or comprehensive policy.


Gap: the company pays the difference between the blue book value of a vehicle and the amount of money still owed on it if ever it gets stolen or crashed right after you bought it off. A great idea if you are leasing or purchasing, for example, a van with a low or no down payment.

Impacting factors on the rates

insurance policies
Convinced already of getting a premium? Below is the list of things you might take note for it will be a varying factor on the rates or car insurance quote.

Deductible (the amount of money you are paying out of your own pocket in case of crashes. The higher it is the lower the bill on the insuring company);

Age (younger and less experience is equals to higher rates);


Demographics (high-crime areas pay more than in low-crime places)

Claims (the lower the better);

Moving violations (obedience pays off and keeps the rates from rising);

Choice of vehicle

Driving habits

Theft deferent systems

Safety devices

Accident prevention training

Multiple policy

Payment plan

Credit score

Have you signed up for a policy yet?