An auto insurance policy is an agreement between individuals and the insurer for automobiles. Motor Insurance or vehicle Insurance is all about protecting against financial losses arising out of vehicle usage. Car insurance is done to protect your vehicle from unforeseen risks. It basically provides protection against the losses incurred as a result of unavoidable instances. It helps cover against theft, financial loss caused by accidents and any subsequent liabilities.
Factors that you can least control may have the greatest impact on your insurance costs. Your age, gender, and driving record are key factors that affect your insurance premium. Insurance premiums are based partly on the price of the vehicle, which affects the replacement cost if it is stolen or “totaled” in an accident. If you own a vehicle and you want to use it legally, you must have valid motor vehicle liability insurance in most of the countries like Dubai, India, Japan, Canada, USA, UK and Australia.
There are several benefits to having car insurance. Consider them all every time you pay your car insurance premiums. There are different types of insurance policies which are available in world and specially two types are most well knows which are comprehensive auto insurance policy and third party insurance policy. Each type of policy has its own benefits.
What are benefits of Comprehensive auto insurance policy?
Comprehensive insurance policy is best package which are offered by different companies. In comprehensive auto insurance policy cover the theft of car , stolen of car , car accidents and damages of car in accident . Mostly companies offered comprehensive auto insurance with high premium rate and it is highly recommended that if you are new driver and you can history of accidents at road then you must buy comprehensive insurance policy. Covers damage to your car from theft, vandalism, fire, wind, flood, and other non-accident causes. Comprehensive also carries a deductible. Fully comprehensive car insurance policies offer the most complete level of car insurance protection.
Third party only insurance policy
This is the minimum level of insurance cover the law requires you to have to drive a car in the world. It does not cover any damage to your own vehicle but only your liabilities to other parties.
If you did accident at road then your company will cover only that car which you damage in accident but your car will not be covered by your insurance company. You are not covered if the accident was your fault or if your vehicle was stolen or damaged by fire. Third party insurance policy is less expensive and has minimum premium.
- Is your auto insurance policy cover Bodily injury liability ?
Covers injury and death claims against you, and legal costs, if your car injures or kills someone.
- Is your auto insurance policy cover Property damage liability ?
Covers claims for property that your car damages in an accident. Because liability coverage protects the other party, it is required in all but three states.
Benefits of Car Insurance
Car insurance can help offset the loss of huge sum in the following manner:
• Provides benefits to survivors when an accident results in death or injured.
• It covers lawsuits, including legal fees brought against you as the result of an accident.
• Covers the bills of vehicle repairs due to damage caused in an accident.
• Covers damage caused by other than an accident for example, theft, fire, etc.
• Car insurance policies allow premium discounts for theft or for owning more than one policy with the same insurer. It also provides added advantage to extend coverage to others driving your car with your permission.
• If you do not make a claim during the policy period then you can find special discount at renewal of auto insuranc policy.
Mostly auto insurance companies offer insurance policy for one year. Now different companies offers different mode of payments. Before buying auto insurance policy must check payment of mode and must select that company which gives most convenient ways of payments. You can pay by mail, online or through automatic deductions. You can also choose to pay monthly, quarterly or in one lump sum. Must also checks the customer response of that company.
When you need policy information, answers to billing questions or assistance with policy changes , how much time that company need to answer your question.these are best points to keep in mind before buying any auto insurance policy.
So before buying any auto insurance package must take care of above mentioned points.Now all over the world trend is changing and people prefer to buy a good auto insurance policy. Now many different companies also set-up their networks in third world countries like India , Pakistan , Sri-lanka , Nepal and Bangladesh. So it is highly recommended for every person to get stress free drive , must buy a good auto insurance policy before drive the new car.