As of 1996, according to statistics, there are 197,941,200 registered cars in the US. Did you know that out of that figure, 24% are uninsured cars. There were 35 million car accidents in that year and for sure, some of those uninsured cars were involved.

That constitutes the primary and most basic argument about car insurances. Skeptics will assert we don't need one for our vehicle. Traffic enforcers will surely find it hard to determine which car out in the street is not covered by a policy. And some citizens are just very skilled at securing car registrations without car insurances.

The thing is, accidents don't choose insured cars. Every car and every driver is prone to accidents. Insurances help cover huge costs arising from accidents, be it damages to yourself, to others, to your car or to other properties.

Argument #2

Car insurance companies should offer similar car insurance rates. Since purchasing car insurances is like purchasing grocery goods, some people argue that rates should be uniform or set within an adjusted and preset range to avoid overcharging and excessive premiums.

The industry understands such sentiments. But hey, the current system is the best system that could ever be implemented. That means, car insurance rates and companies are open and subject to competition. So if other insurers have astronomical quotes, for sure, competitors are around the corner waiting to get you for a home run.

Why do teenagers get higher car insurance rates?

It is always assumed that since teenagers lack enough driving experience, they are more prone to accidents. Thus, insurance firms will impose greater premiums to them. That is a business strategy, analogous to the law of supply and demand, where, increasing demands result to shortage in supplies.

Teenagers are almost always impulsive and naturally adventurous. Statistics show that most road accidents occur between 12 midnight to 4 in the morning. This is the time most adventurous teeners aim to hit the road—because there are less cars in the streets and they can drive more freely. Alas, it is becoming a rat trap for them and so they get involved in a number of car accidents during the wee hours.

Parents, kids and car insurance rates

Parents living with teenagers, who drive, get higher car insurance premiums. Why? Because it is assumed that in one instance or another, the kids will skip away for a little trip out of the neighborhood using your car.

However, if teenagers are applying for car insurance policies, their premiums will be lowered if they state that they are living with their parents. Sometimes, little events and details like these can be too amusing.

White lies and car insurance rates

Some people argue that since their personal information are held against them during car insurance applications, it is better to withhold several shadows of the past, like overspeeding tickets and other driving violations.

White lies will do you no wonder this time. Car insurance companies have reliable teams who will inspect and investigate your driving and even credit history. So if you did little lies to make your record a little cleaner upon getting quotes, be prepared for adjustments when you pay your premiums.

There are more arguments concerning car insurances and rates. But if you have particular issues or questions, don't hesitate to pick up the phone and ask your insurance provider or agent. Always be on the guard and look around, so you will never get left behind when it comes to car insurance issues.

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