Owning a vehicle entails having an insurance that will cover for the costs of repairs in case of traffic accidents and even other liabilities that could result from those accidents, like hospital charges. The insurance contract for my car is comprehensive, meaning, it covers car damages on both parties, hospital bills for both parties, and pays a particular sum in the event of death on anyone involved in the accident.
Aside from this, the insurance company is obligated to pay the insured in the event of theft, vandalism, and other non-collision related incidents. This is bilateral because I would be paying the insurance company a premium in exchange for the protection. 2 Under the contract, the insurance coverage includes the car, its owner, and third parties involved in an accident. The determination of how much premium is needed is arrived at by considering many factors.
Among those are: the age of the insured, driving history, gender, age vehicle classification, marital status, and the coverage available to the parties and vehicles insured. Usually, people with high premiums are those who are considered, based on statistics, to be more prone to accidents. These could include male drivers below 25 years old. Those who enjoy lower premiums are female drivers above 25 years old and are married. Statistical data show that this group of drivers are the ones least involved in traffic accidents.