Everything You Wanted to Know About Auto Insurance

Auto insurance refers to insurance purchased for cars, trucks and other vehicles that run on roads. It primarily provides protection against loss due to damages caused in road accidents, fire, lightning, self ignition, external explosion, burglary, housebreaking or theft, malicious act, liability for third party injury/death etc. In many countries, it is compulsory to have a vehicle insured, according to the stipulations of the government of that country, before it can be used on public roads.
The insurance premium is sometimes mandated by the government, while at times it is worked out by the insurance company based on the regulations set by the government. The Internet has greatly changed the process of buying motor vehicle insurance. A large number of buyers prefer to get quotes and even make purchases online, as it is possible for them to compare the quotes of many different providers and policies at once. The factors to be considered while buying auto insurance are:

1. The scope of coverage is the major aspect that has to be primarily decided at the time of buying an auto insurance policy. As the laws vary from country to country, a policy that provides the best coverage pattern should be selected. The scope also includes the right amount of coverage.
   
2. Selection of the insurance service provider is the next important aspect to be considered. It is a good idea to identify a set of service providers and prepare a comparative statement of their quotes. There are many online portals that provide the price comparison service and hence the details can be ascertained from the comfort of home or office. However, it is to be ensured that the insurance company is offering the best coverage that caters to need of the buyer and statutory stipulations. Another aspect to be considered is the insurance company's customer service credentials.
   
3. It is always better to use a local agent after determining the best offer based on online quotes comparison. Working with a local agent may work out cheaper at times and the buyer also gets personalized services.

In many countries, the motor vehicle insurance is renewable on a yearly basis. It is of utmost importance that the renewal is done within the specified time period as it is illegal to drive a vehicle on public roads without insurance coverage. It is also advisable to keep comparing the rates every six months or twelve months to get a better bargain at the time of the renewal with a different insurance compan