subject: Car Insurance And Reasons It Is So Crucial [print this page] That check can be placed in the mail, or perhaps that payment is done online, but in order to drive in the United States legally, those premiums for vehicle insurance have to be paid. Not many people like to make payments for insurance, and they may do so with some difficulty because they often feel it is something that will not be necessary in the near future, will never be necessary, or is just a simple waste of good money. A large majority will only pay for what is required by law to carry as far as coverage. The following will explain the value and importance of car insurance.
Statistics show that insurance could come in extremely handy when on the road. During a five year period, over twenty-five percent of all drivers are involved in an auto accident. When using a percentage it may not seem as large a figure, but think of it in these terms; every fourteen seconds someone is injured in a car crash, and out of those two million are permanently injured. The statistics do not improve either, every twelve minutes, a person dies in a car accident and this totals forty thousand per year.
There is a large amount of information considered when insurance rates are calculated for an individual and a family policy. On the average, it would not be unlikely to pay somewhere in the area of eight hundred dollars per year per vehicle. This amount will vary based on the state in which a person lives, some will be slightly higher or lower. Take into consideration that it costs one thousand dollars every year out of every Americans pocket for accidents, and this total comes to sixty-four billion dollars, then this leaves no doubt why insurance is not only important but valuable.
While each state has a particular rate, that rate is adjusted based on categories that the individual driver can be divided into. Several factors decide how the individual is placed in a particular category, and the categories include, low rise, average risk, and high risk. They will refer to these categories most likely as preferred, standard, and non-standard. Some things can be done to improve a category ranking or not fall in to a particular category, but in other cases, age may be the determining factor.
Certain individuals are considered non standard or high risk simply because of their ages. This applies to those below a certain age, and above. It may not seem quite fair, but the basis is on driving experience and driving risk. Putting a young driver in a less expensive vehicle is one way to keep premiums at a lower rate.
By now, it may be a bit more clear that insurance is quite necessary. In order to keep the premiums low, a good driving record is the best way to go. Insurance companies can assess a driving record for as much as twenty years when making a decision on placing an individual in a particular category. Accidents are not the only thing that will put a person at higher risk, too many tickets in a short time period will do this as well.
Speeding is the result of thirty percent of fatal car accidents. United States car accidents total six million every year. If it is still difficult to sign that check for the premium or make that online payment, think about reassurance instead of insurance.
by: Saundra Hemmingway
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