Automobile insurance is a necessity in life as it protects you against financial losses resulting from an accident. It is important for us to have auto insurance because every second spent driving is a risk to you. Every policy is required by law to have liability coverage. This coverage pays for your responsibility to others for bodily injury or property damages. Liability coverage does not cover any damages or losses to you or your vehicle.
There are, however, policies available to cover you and any passenger in your vehicle as well as the vehicle itself up to a complete loss. Once you decide which coverage is best for you, you will enter into a contract with the insurance company. You agree to pay the total premium amount offered to you. Payments can be paid in full or monthly (monthly fees may occur). In the result of an accident, your insurance company agrees to pay the losses as defined in your contract with them. These contracts are normally annually or semi-annually. At the end of your contract, the insurance company will offer you a renewal contract. The renewal payments are required to be paid before the renewal date to ensure continuous coverage is provided to you.
Sometimes rates will either increase or decrease depending on one or more of the following reasons:
- Driving history
- Tickets or accidents between renewals
- Vehicle changes
- New drivers added to your policy
- Credit scores
It is important to discuss any questions you have with your insurance agent. Your insurance agent can also help you decide which policy and company is right for you. If your rate increases or decreases at the time of your renewal, you can call us to ensure you are receiving the lowest possible rate. Give us a call or request your free auto insurance quote through our website.