Auto insurance is a contract between the policyholder and the insurance company. When you purchase a specific auto insurance policy, you mainly transfer certain risks to insurance companies in the form of an agreement. The risks involved may include economic losses such as bodily injury, income loss, property damage and many more. When you sign a contract for an auto insurance policy, the insurance company agrees to provide you with liabilities occurring due to specific losses mentioned in the policy contract. The insurance agreement mentions the coverage limits and indicates the dangers that may occur such as acts of terrorism and many more. Auto insurance policies protect the policyholder from economic losses that occur due to theft or vehicular accidents. Personal auto insurance policies help the insurer get rid of the economic losses due to an unexpected event. Auto insurance organizations earn their premiums through policyholders from their losses. They also get benefits from people who have not taken their claims and inform such people to invest their premiums that contribute largely in making profits for the insurance companies.

Factors:

You may pay the premiums to the auto insurance company on monthly or yearly basis. Auto insurance companies offer various flexible plans to insurance buyers. You get three types of choices for each statement. This means, the auto insurance policy covers you for events or financial losses mentioned in the policy only. If you get involved in an accident and suffer huge losses due to the accident, your insurance organization is liable to pay for the amount you are covered under the policy. Insurance coverage includes any kind of damage to property such as federal, state or vehicles, natural disaster such as storms, floods, destruction to the vehicle, towing, and replacement of vehicles. Whenever you are involved in an accident, the claims costs much more than the premiums you pay. However, according to the agreement of the policy, you are entitled to get complete coverage for your losses. Due to the accident, you might be responsible for damage to other people’s vehicle or property. These are also covered or insured under the terms of your policy. Auto insurance is mandatory in most of the states in the U.S. If you have vehicle insurance, it gives you a peace of mind and takes away the worries that may occur in times of emergencies. In certain states, you need to have a proof of your insurance policy to run a vehicle

Vehicle Insurance Costs:
Insurance companies charge the premiums of the vehicle depending on the locality you reside, the type of vehicle you drive and your driving record. You need to do a proper research and compare the prices before you select particular vehicle insurance. You may contact an agent or a broker, who has excellent knowledge about vehicle insurance. You may also contact these people, if you need to make any changes in the policy or for renewal purposes. In this way, you will be safe while choosing an insurance policy for your vehicle.

By: Rafael Davies

The whole Federal Health Insurance Reform debate is out of control. Americans, Congressmen, insurance cannot be placed against a risk that has already been damaged. The only exception to that being auto liability insurance which is NOT covering any peril to property in your care, control or custody. Your body is your property (a physical being) in your care, control and custody just like your car. Ask any rebellious teenager if their body is not their property.

Health insurance companies make a profit from the premiums they charge. Some make much more profit than others and some are created as Not-For-Profit entities. Congress has attacked For-Profit health insurance companies on the grounds that they are creating ‘excessive’ profits. These health insurance companies are profiting on the backs of Americans health. How dare them!

What about auto insurance companies? Do they not create ‘excessive’ profits? Do they profit on the backs of Americans required by their state governments to maintain auto insurance if they are to legally operate a car on public roads? Why is Congress not attacking the auto insurance industry? Or, did I speak prematurely?

How different are the two insurance types? Not very different, are they? So why is Congress deciding to take over an industry that operates just like the auto insurance industry? Why are Americans allowing this to occur?

When you drive your car into a pole, another car, a fence, a barn, back of your wife’s car, your car will (possibly) suffer from physical damage to the body panels, the chassis, engine and/or cockpit. If you did not have ‘physical damage’ coverage (comprehensive and collision) at the time of the accident, you cannot go to an insurance agent or your existing agent and have physical damage added to your liability insurance policy. It’s too late. You elected not to carry the coverage or your car was too old from the insurance company perspective to accept physical damage coverage on your car. Either way, too bad so sad. You were too late.

When you have a heart attack at age 42 and do not have health insurance that covers heart attacks, you cannot go back to the health insurance company and ask to add it to your current policy. They will laugh you all the way to curb in from of their ginormous headquarter building. You’re too late. To bad so sad. “You should have called yesterday to add that coverage to your policy, sir.” “I did know I was going to have a heart attack today.” No kidding. That’s the whole premise behind insurance – insuring for loss at some time in the future, not some time in the past.

As a For-Profit small business owner, I do not understand why other Americans are so hellbent on Congress taking over an insurance industry, taking out everything insurance, and calling it ‘insurance’? If it walks, acts and quacks like a duck, then isn’t it a duck? In Washington, if walks, acts, and quacks like a duck that must mean grab it, tear it up, put it back together and make it look like a jackass while still calling it a duck. Wake up! After health insurance, what’s next? Auto insurance? Airlines? Banking? Automobile? (Oh yhea, they already got those two)!

By: Sean Kimbrough