Auto Insurance : How Auto Insurance Works


This is Patrick Munro, financial adviser talking
about how general auto insurance works. As most people out there are aware, auto insurance
and vehicle insurance in general is a requirement by the various state governments across land
for all vehicles using public highways. The way it works is that once an individual is
appropriately licensed to drive the said vehicle, depending on his or her drivers record, they
have to pay a premium to an insurance carrier for the risk. That is to say the risk of a
crash, meaning the damage of not only your vehicle but, other vehicles that would be
involved in the wreck. Also bodily injury, premium is also paid out as well. In the case
of someone driving down the road that’s not insured you also have uninsured motorist protection
that’s built in to every policy. And everyone pays into a fund for that particular instance
as well. General auto insurance works by you paying a premium and normally the premium
that you do pay is based on your driver record, so make sure you’re a safe driver, that you
don’t have excess points caused by speeding and car wrecks. Because if you do you’ll pay
a higher fee for your auto insurance. This is Patrick Munro talking about how auto insurance
works.

Leave a Reply