What is Insurance? Please help me:)?

Question

I am 14 almost 15 and will be getting my car when i am 16 of course but i might have to pay for my own insurance and I know nothing about it so could you guys please fill me in?

Answer 1

When you own and operate a car you have two financial risks.

First is the risk that you could cause an accident and hurt someone. If the accident is your fault the person that you hurt would, at the least, expect you to pay their hospital bills and and pay for their loss of wages if they were unable to work. As you might expect, these costs could be significant.

Second is the risk that you could damage your car in an accident or have it stolen. If the car is a "junker" of little value you may decide to accept the risk of loss. On the other hand if it is a newer car and you had to get a loan to buy it the bank would require that you insure the car so that it could be replaced or repaired.

Entire books and people's careers are devoted to the question "What is insurance?" Very simply, your insurance company agrees to pay for the financial consequences of an accident. In return you pay the company a premium (a monthly, quarterly or semi annual payment)

Answer 2

I have met this kind of problem before,here is the resource I found useful.http://car-insurance.bestips.info/car-in...

Answer 3

When you carry auto insurance, your insurer guarantees to pay costs up to the limits of your policy in the event of an accident covered by the terms of the policy.

Find out what the minimum coverage requirements of your state are, because every state has different requirements.  You can find out by going online or calling your state's bureau of motor vehicles (same as where you get your driver's license).

Once you know the minimum requirements, you can begin to shop around for coverage with different companies.  Remember that just because you know the minimum requirements, it doesn't mean you can't buy more coverage than is required.  For example, I carry collision coverage, which my state does not require, but I carry it because I know that I would never have enough cash to fix my car with money out-of-pocket if I ended up in an accident.

Note that most insurance companies will offer various discounts, such as if you carry more than one policy with them, if you drive for a number of years without any accidents or tickets, if you wear a seatbelt, etc.

Answer 4

hey dramaqueen its me again =) thanks fo r the best answer comment yes i am very nice, but insurance may cost some cash but you need it to be on the road, it helps you pay when u get into an accident it is also somthing that helps pay for you if you get injured only thats a difrent sort of insurance

Answer 5

you take out an insurance policy b/c when you drive a car, there's always the chance you will get into an accident and someone will be seriously injured or even die. If you crash into someone and they die, you will be sued and the court might award their estate a million bucks. obviously you don't have that much lying around, so your insurance company would pay the judgment. insurance also covers injuries or losses to you and your car, like if your car is stolen or someone smacks into it in a parking lot. car insurance costs more if you are viewed as a big risk, such as someone who is 16 and just learned how to drive. also, you'll pay a higher rate for insurance if you drive a very fast car like a Corvette or a V8 Mustang. Boring cars like a Ford Taurus or Toyota Camry are a lot cheaper to insure. you might think about that when you look for a car.  

Answer 6

first of all you must know about insurance companies and their plan than decide what is good to you,there are many site those are giving these informations

Answer 7

Insurance is a product you buy that pays people for damages you do in a car accident.  You pay an insurance company a premium (money) which they collect and put into what is called a trust (everybody's money goes into this trust).  When someone has an accident that is their fault, the insurance pays the person you hit to fix their car and they pay to fix your car, less your deductible (let's say you had an accident and it cost $1,000 to fix your car and you have a $500 deductible - you deduct the $500 from the bill and the insurance pays the rest - in this case, you pay $500 and the insurance company pays $500).

Premiums (the amount you pay for this insurance) varies depending on your age, the type of car you drive, your driving record, where you live and a bunch of other stuff.  Basically young (under 21) males pay the most (they tend to have the most accidents), followed by young females.  Sports cars cost more to insure than non-sports cars (they are more expensive to fix and folks driving them tend to have worse driving records).  People living in cities tend to pay more then people living in the country (higher car theft).