Car insurance is necessary as you are covered against extreme financial losses due to theft or accidental damage of your vehicle. Many various types of detrimental loss can happen due to a third party, and our goal here at the Alexander Insurance Agency of St Charles is to consistently assure that you are covered by the best and most useful policy for you. At Alexander Insurance, we want you to be prepared and knowledgeable when it comes to all things related to your vehicle. We provided you with a list of some of the basic points of interest regarding car insurance.

How Exactly do Car Insurance Premiums Work?

The premium is the amount that you pay to your provider for going the distance and offering you coverage. Factors that affect this are the make and model of car, geographical location, how extensive your coverage will be, your deductible, and your past driving record. Any vehicle being operated needs valid comprehensive or third-party insurance, which became compulsory nationwide under the 1988 Motor Vehicles Act. Most policies are valid for either six months or one year. You can benefit from a discount by paying the annual premium or paying monthly to assure the policy stays active and you are legally able to hit the road.

How is your Premium Amount Calculated?

When you are buying a new car and excitedly preparing to hit the road, car insurance is essential to see you abiding by state laws and protecting yourself while you are behind the wheel. The amount of the premium is the major focus while purchasing the policy, and there are several factors at play that determine its amount. How much the vehicle is officially worth, its age, and the engine’s cubic capacity are some of the major factors that affect the premium’s cost. Where you are driving, how much you are covered for in case of an accident, and other legal and liability coverages.

The Vehicle’s Insured Declared Value:

This refers to the highest amount of a claim that we as your potential provider will pay out if the damage to the car is considered officially as a total loss, or the cost of the repair is greater than 75% of the IDV. The moment you proudly roll off the lot with a new car and purchase insurance, the insurer decides the IDV while factoring in important depreciation elements. Every year you own your vehicle, it depreciates. Additional accessories such as luxury stereos will be added to the Insured Declared Value separately and the price will then be adjusted for depreciation.

Is the Car Going Experiencing its Graceful Aging Period?

As your vehicle gains more years, it starts depreciating naturally. Every time a newer model Is launched, it further reduces your car’s value. Insurers have a set schedule that is applied to vehicles and their overall market value depending on their age. It is also very important to understand car insurers and the way they work in your state. In certain states, you may be required to have a car insurance policy that includes Personal Injury Protection, medical payments coverage, or uninsured motorist coverage, as you need your state’s specifics in mind to make your decision.

The All-Important Full Coverage Comparison

If you opt for just liability coverage, it does not pay for your car or injuries sustained during a traumatic crash. Many of our customers here will opt for “full coverage”, adding in the very attractive benefits of collision and comprehensive coverages. Comprehensive coverage can kick in and help with the value of your car if it’s stolen and not recovered. It can also help with protection from floods, fire, falling objects, explosions, and vandalism.

We have been helping the residents of St Charles and many surrounding communities locate the best coverage for years. Relaying messages of positivity from satisfied customers is always the best part of our day. Every time you head out for anything from a quick errand to an all-out weekend trip, you’ll know that your best interests and vehicles are consistently covered through us here at the Alexander Insurance Agency!