BDD Insurance Portal

Auto Insurance is also known as vehicle insurance or car or motor insurance and it is mandatory to buy it when you buy a car. Many car dealers also sell auto insurance along with the vehicle as it is a must in most of the states. Even if you just want to park the new vehicle in your driveway or keep it in the garage, it is absolutely necessary to buy auto insurance.

Though most states have made it compulsory, the enforcement varies. New Hampshire does not require motorists to carry liability insurance. Residents of Virginia have to pay $500 annually as fees per vehicle. If you do not buy auto insurance and you own an automobile, you are liable for paying a fine or a penalty. Again, the penalty varies for state to state but it is quite substantial, making you wonder why you did not buy auto insurance in the first place. Sometimes your license may be revoked and some states may even send you to jail.

Auto insurance is bought for all vehicles whether they are cars or trucks, buses or sports cars; the main use is to provide against losses incurred because of traffic accidents. The minimum requirement by law is third party insurance which protects third parties against financial loss, damage or injury caused by the vehicle. In accidents or mishaps damage to the vehicle and the people in it may be heavy. In the event of such an eventuality the insurance company has to be first informed. They will send a representative to assess the damage and when you apply for compensation, his report will decide upon the amount of compensation.

Auto insurance, like other types of insurances, is a contract signed by the insurer and the insured party whereby the vehicle is insured for a specific sum in exchange for a fixed amount paid as premium by the insurance buyer on a regular basis. The amount of the premium and the duration of the insurance are decided at the time of buying the insurance. If you insure your vehicle for a large sum, then the premium you have to pay is also high. It has to be religiously paid otherwise the insurance will be forfeited and you will not get any compensation in the event of a mishap.

There are discounts regarding the premium which is decided according to the age, sex, and experience of the insurance buyer. Younger people may have higher premiums to be paid while women and retired people may pay less. This is because older people and women are expected to be safe and careful drivers. The model and make of the car also decides the amount of the premium. A sports car may cost the insurance buyer a higher amount of premium. People with a good record of driving may have to pay less as compared to those who have a debatable one.