Automotive & Car Reinsurance

When you drive a car you realize you take on risk of damage and injury in a collision. Motor vehicle crashes kill over 1.2 million people worldwide each year, and injure about forty times this number (WHO, 2004). The cost of collisions to the U.S. economy is estimated at over $40 billion, even as roads, car design and vehicle controls improve each year.
The losses incurred by an collision can come from a variety of incidents and incur a wide range of expense.
• Property Damage: You can consider taking on the risk and expense of car damage by paying for it yourself. That is, you can ‘self-insure’.
Depending on the value of your vehicle it may be reasonable to decide that you can discard the vehicle completely (‘write it off’) or pay for its repairs.
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• Bodily Damage: When you sustain injuries the medical expenses can be very high. You may not be able to afford paying for yourself or for your passengers, and health care insurance may not cover everything.
• Liability: Other people’s injuries, damaged vehicles, and private property may be due to your fault and they may sue you for the expenses. These expenses may be way beyond your means to compensate.
• Uninsured: In another situation, you may be involved in an collision through no fault of your own and have to claim expenses from the other driver. If that person is not insured then you may receive nothing or an inadequate amount to cover your costs.
Most states mandate some minimum insurance that you must carry in order to drive legally.
These are the reasons why car reinsurance is prudent, sensible, and responsible. The cost of maintaining financial protection can be low if you find cheap car reinsurance rates.
Except for state mandated requirements, you can choose the amount of coverage to carry in order to keep your insurance rates down. By driving carefully and buying easily repaired cars you can get lower rates because you are a lower risk customer.
By carefully choosing the coverage you need, and comparing the quoted rates, you can find your best buy in cheap car reinsurance.

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