| Car Parts home
> Car Parts Info Center >
Auto insurance
Auto insurance
 The
following is a basic explanation of how auto insurance works and,
as a motorist, what your options are:
· Basic Premium Charges
The majority of all auto insurance plans will routinely charge a
flat fee for insurance per car each year. You will require auto
insurance no matter how much or how little the car is driven.
However, a method of payment by time unit provides no actual measurement
of the actual miles driven or of driving exposure the car has had.
Therefore, to some people’s misfortune, auto insurance companies
have no true statistical basis to use for cost comparisons to determine
price classifications of insurance per year.
- Reasonable estimation:
Some auto insurance companies use as a sales enhancement, the
option of applying a certain discount to customers who predict
that the car’s mileage will fall below a certain limit during
the next premium period.
Under such an agreement, there is no verification of miles used,
and no additional charge if the car is driven more than the amount
stated upon payment at the start of the payment period.
- Odometer-based estimations:
Customers have the option to buy prepaid miles of insurance protection
as necessary. The insurance automatically terminates when the
odometer reaches the limit of paid miles and then more miles must
be bought. It is kind of like running out of gas. You need to
replenish your insurance as you would gasoline, or as you would
buy more minutes on a prepaid phone.
In such situations as odometer-based auto insurance, the customer
must keep track of miles on their own odometer. They are responsible
to know when to buy more auto insurance.
This particular method has been criticized because auto insurance
providers worry that odometer tampering may effect the system.
There is auto insurance offered even for such things as rental
cars and for secondary drivers of a car owned by someone else. No
matter what auto insurance you have or need to have, try finding
the best auto insurance plan to suit your needs.
|
