What should you consider regarding auto insurance before buying a vehicle quizlet?

What should you consider regarding auto insurance before buying a vehicle?

Collision and comprehensive will cover damage to your car—and supplemental gap insurance will cover the rest. Keep in mind that your insurance options and costs will also be affected by your age, gender and driving record. Be aware too that your credit score can also impact your insurance rates.

What is one important factor in determining the cost of life or auto insurance?

Age is the most important factor in determining the cost, as a younger person will make payments for many years before cashing out; therefore the younger you are, the lower your payments tend to be.

What aspects of auto insurance do you feel most important to consider?

The most important coverage has to be your state’s minimum liability and property damage coverage. More than anything else, you need to maintain car insurance to keep yourself legal to drive. You risk losing your driver’s license and fines driving without it.

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How does auto insurance work quizlet?

An auto insurance policy is a legal agreement between you and your insurance company. … You pay a premium to the insurance company regularly, and in return the company is obligated to help pay for covered damage to your car, others’ property or injury to yourself or others as a result of an auto accident.

Do I buy insurance before the car?

It is usually best to buy car insurance before you get your new vehicle. If you already have car insurance for another vehicle, you may not yet have to buy another plan. Most insurance companies offer a short grace period in which your new car is covered.

What questions should you ask when buying auto insurance?

5 Questions to Ask Your Car Insurance Rep

  • Do I Have All the Coverage I Need? …
  • Am I Getting All the Discounts and Savings I Can? …
  • What Is Covered if My Car Is in an Accident or Gets Damaged? …
  • What is Covered if My Car Is in an Accident and Someone Is Injured or Dies?

Do grades matter for car insurance?

Young drivers who also earn good grades can be eligible for a dramatic discount on their insurance. Studies have shown that a student who receives As and Bs is more likely to be a better driver than a student who receives Cs and Ds. This discount does vary by company, and in fact, may not even be offered by some.

What should you consider when selecting an insurance company?

Eight tips for choosing the right insurance company

  • Independent agent vs. insurance company. …
  • Company history/reputation. Research the insurance companies you’re interested in. …
  • Understand the insurance company’s financial strength. …
  • Coverage. …
  • Price. …
  • Ease of doing business. …
  • Available discounts. …
  • The power of referrals.
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How do insurance companies determine insurance premiums?

To determine the insurance premium of a car, an insurance company considers the following determinants: the model of the car , the age of the car, and the mileage of the car.

Why should you purchase insurance?

Insurance helps you: Own a home, because mortgage lenders need to know your home is protected. … It covers your day-to-day costs and larger expenses like your mortgage while you focus on your health and recovery. Cover health care costs like prescription drugs, dental care, vision care and other health-related items.

What should be included in car insurance?

While different states mandate different types of insurance and there are several additional options (such as gap insurance) available, most basic auto policies consist of: bodily injury liability, personal injury protection, property damage liability, collision, comprehensive and uninsured/underinsured motorist.

What is the most important type of car insurance you should buy slader?

Liability insurance is the MOST IMPORTANT coverage. It protects you if your driving causes injury to others or to other people’s property.