Terms and Conditions of Auto Insurance

Based on the high rate of accidents which happen each year, it is imperative that anyone driving a car whether it is your car or a friend’s car must have an auto insurance policy even if it is the least of all insurance policies available.

An insurance covers the policyholder and in most cases it covers other people who use the car or the driver. However if the car gets into an accident which is not in the interest of the policyholder, or in violation with the agreement between the policyholder and the insurance company, the insurance policy will not cover the damages from such accident.

In instances where the insured vehicle gets sold to another person, the new owner is covered by the third party liability Insurance and also by the comprehensive car insurance policy (if there is any) within a period of 3 weeks after the change of ownership. When there is a new active insurance policy, all deductibles under the insurance will be paid by the new car owner.

Auto insurance does not cover damage to vehicles in company possession for purpose of sale

Depending on the car insurance policy agreement between you and your insurance company, there might not be a need for you to notify them when the terms in the policy agreement changed. The consequence of refusal to notify the insurance might be forfeiture indemnity and compensation if an accident occurs or reduction of the indemnity and compensation or lapses in the payment if indemnity and compensation.

Therefore to avoid the consequences stated above, whenever there is a change in the policy information notify your insurance company immediately.

You can purchase the same auto insurance from two different insurance companies without terminating the initial insurance with the first company but when an accident occurs, the agreement in your car insurance policy will applied, and this may mean that both companies pay half is the cost for the accident each.

Another important thing to note regarding auto insurance is the deductibles which are based on the agreement in the auto insurance policy. Deductibles are deducted only once in cases of an insurance event involving both third party liability and damages under the comprehensive auto insurance.

No deductible will apply in situations such as:

1. Damages from a known liable tortfeasor

2. Damages from fire, explosion, lightening or theft

3. Damages from items falling on the car.

Furthermore, there will be additional deductible if there is driving damage to the car by another person other than the policyholder, or any registered user of the three car under the auto insurance policy.

There are certain accidents which your auto insurance policy may not cover. Under the liability insurance, your auto inside policy does not cover;

1. Injury to the driver

2. Damage from the carriage of goods by road under the acts of contract

3. Damage to attached vehicle

4. Damage which occurred at the time the vehicle was rented out unless it can be proved that the damage is as a result of occurrence which is in accordance with the auto insurance policy

5. Damage to items belonging to the driver, policyholder, anyone stated in the auto insurance policy it a regular user.

The following accidents are not covered by the comprehensive auto insurance:

1. Damage resulting from weather conditions

2. Damage car parts during repairs unless it can be proved the damage had occurred during the driving or by fire

3. Damage in the electrician and mechanical parts the vehicle, unless it can be proved the damage occurred in accordance with the auto insurance policy

4. Damage resulting from reckless driving i.e. Overheating or no change of oil

5. Damage which occurred while the car was rented out

6. Damage which occurred from intoxication of the driver

7. Damage caused intentionally by grid negligence

8. Loss of the car due to seizure of the car by law enforcement authority

9. Damage under warranty and guarantee

10. Damage from usage of the car such as wear and tear, scratches on the car body and so on.

Duration of the auto insurance policy is based on the agreement between you and the insurance company. Most auto insurance agreement are annual and are renewed yearly unless it’s canceled in writing by the policyholder or the insurance company with a month’s notice.

Secrets to Getting the Cheapest Auto Insurance?

Auto insurance is designed to help protect you in situations that involve your vehicle. Which is one of the reasons that auto coverage follows the car, Auto insurance is a necessity and requirement in all states? Auto insurance is a complete must for all the drivers. Auto insurance provides third party coverage and has emerged as a legal requirement.

Auto insurance is a very simple thing that may cause much confusion for many people. The lack of knowledge, when shopping for general auto insurance, is the problem that most people have. Auto insurance is one of the most used types of personal insurance. Most states require that you purchase some kind of insurance coverage to drive legally in the state. Auto insurance is a “necessary evil” which is necessary for all automobile owners. But it is not enough to have an insured vehicle; the main thing is to have an insured vehicle with best auto insurance.

Auto insurance is certainly one expense that you have to budget for where doing a little research and making some calls can pay huge dividends in both the short and long term. With little time invested, you can potentially save hundreds a year and tens of thousands over your lifetime. Auto insurance is mandatory for drivers in all 50 U.S. However, most drivers rarely, if ever, look at their auto insurance coverages to see exactly how they are protected financially in the case of an auto accident, natural disaster, or vandalism.

Auto insurance is meant to make you whole in the case of an accident with injury or property damage. It is to protect your assets and protect you from liability. Auto insurance is mandatory for all new vehicles, be it for commercial or personal use. Insurance Companies are coming out with comprehensive policies for its customers. Auto insurance is a mandatory thing, but like wearing a seat belt, it is fundamentally good idea. This is why so many people are reluctant to purchase only the bare minimum required by law in their states.

Drivers are classified based on a number of different characteristics including, but not limited to, age and gender, marital status, where the vehicle is garaged, driving record, make and model of vehicle, prior insurance coverage and annual miles driven. History has shown that drivers with certain characteristics, such as a poor driving record, have a greater chance of being involved in an accident, and the drivers in those classifications must pay higher rates. Drivers do not realize how expensive it is to have and operate a vehicle. This “privilege” is heavily subsidized. Drivers who are similar in other respects: age, gender, location, driving safety record, pay nearly the same premiums if they drive five thousand or fifty thousand miles a year. Just as an all-you-can-eat restaurant encourages more eating, all-can-drive insurance pricing encourages more driving.

Coverages include the type of losses for which the company agrees to pay. Each kind of coverage you buy will have its own section in the policy that details the situations it covers, persons insured under it, definitions of various words used, exclusions that apply to the section, and the limits of the company’s protection in that section. Coverage provided by group and non-group policies generally is similar. Remember, however, that different companies offer different coverage options in their policies.

Companies having insurance for auto mobiles are accorded a rating depending on a combination of factors such as total experience, claims handling, policy opportunities, pricing and financial strength. Companies frequently adjust rates such that no one company stays in the low cost leader slot very long. Unless you get new quotes every year, you never know that you might be able to get better rates from a different auto insurance company. Companies offer discounts to policyholders who have not had any accidents or moving violations for a number of years. You may also get a discount if you take a defensive driving course. Companies renew policies after expiry. A discount on premium is sometimes provided to existing clients.

Car insurance rates for a 16 yr old can gradually decrease as the teenager learns how to show their level of responsibility more effectively. The less risk that driver shows, the lower their rates will be. Car insurance is one such item because they were very easy to possess but today they create difficulty for our pockets. People think a large number of times before going for any particular insurance plan. Cars that have more expensive parts, or are sportier are equipped with higher insurance rates. Buying a less expensive car will cut down on your insurance and liability coverage costs.

Carefully study coverage extent, the length of time it takes to process claims and extras such as free towing or road assistance. Customer support is also extremely important you want an auto insurance company that can give you maximum support whether online or over the phone. Cars with larger engines typically waste even more gas while idling than cars with smaller engines, according to Consumer Reports, as a rule of thumb, turn off your engine if you will be idling for more than 30 seconds.

Car accidents happen more frequently than you think, and car repair costs are higher than ever. And, in our increasingly litigious society, the chances that you will also be sued by another driver in the accident are very high. Cars are given a rating from 1 to 27, and the higher the number, the higher your premium.

Plan your next car purchase as a negotiation between what you really want and how it will affect your insurance premiums. Determine how much extra you are willing to pay in insurance for a car and use that figure to help you determine what your price range is. Plan ahead and potentially saves lots of money.

Persons sharing characteristics with high claims groups will be charged more for insurance coverage. Personally Identifiable Information might include your name, age, mailing address, telephone number, mobile phone number, email address, and other identification and contact information.

Comprehensive insurance policies have deductibles – the amount of money you have to pay out before your insurance company starts picking up the bill, the higher your deductible, the cheaper your monthly premiums. Comprehensive auto insurance will also protect you from any public liability claim made as a consequence of the accident. As well as accidents, your vehicle can also be covered from damage caused by from fire, theft, vandalism, adverse weather and other scenarios. Comprehensive insurance can assist you financially in this but only up to the Kelley Blue Book value of the car. If repair costs exceed this value, the car insurance company will declare it totaled and award you the full cash value of your car.

Additional coverage is recommended if you have a larger net worth. Additionally, life insurance can help pay for funeral costs and therefore ensure that your death will not be a financial burden for your family.

Liability insurance covers the damages caused by your vehicle, whether bodily injury or property damage. The amount of coverage varies by policy and by the kind of damages covered. Liability coverage pays for damage that you’re responsible for and have caused to other people or their property.

State-run insurance guaranty associations, which are supposed to pay claims for insolvent insurance companies, exist in each state. However, while these associations are an important safety net for insurance consumers, they are by no means perfect. State regulators must explicitly approve the type of insurance policies that insurers offer, and in many states current regulations would not even allow pay by the mile policies.

Accordingly, buy a little more than the minimum required, to give you extra cushion of protection. What price are you willing to pay for piece of mind? According to industry professionals, teen drivers add anywhere from 50 percent to 500 percent to a premium. However, many insurance companies will discount the rate when a child is away at school. According to the Insurance Information Institute, increasing your deductible from $250 to $500 can save you up to 20 percent on comprehensive and collision coverage.

Thank you for taking your time to read this article. Information shared here does not constitute financial, legal, or other professional advice. This article is intended to provide general information only and does not give advice which relates to your individual circumstances.

Cheap Auto Insurance

So, now that you have decided to splurge on a car that you had always wanted to own, it is essential that you also get an auto insurance policy. An auto insurance policy covers your car in case it is stolen and also enables you to claim for damages, if it meets with an accident. Most auto insurance policies have liability coverage as part of the policy. Liability coverage pays for damages if you are at fault in an accident. Any way you look at it, an auto insurance policy makes sense, because any of these things could happen any time.

With the automobile sector booming, it is natural that the auto insurance field is also becoming increasingly competitive. Day in and day out, consumers are bombarded with advertisements from companies offering cheap auto insurance. Every insurance company is trying to get your attention with gimmicks and special offers. Many customers end up scratching their heads in sheer confusion. With so many attractive options, selecting the right company and policy can be a very difficult thing to do.

When it comes to cheap auto insurance, there are many different aspects of the business that come into play. There are ads for cheap auto insurance for new drivers, cheap auto insurance quotes, cheap auto insurance rates, cheap no fault auto insurance, cheap full coverage auto insurance… and that is to name only a few of the things mentioned in these ads. You can get comprehensive information on these terms on the Internet. Visiting the extensive Web sites that almost every insurance company has set up can help you to find the information you need in plain black and white.

It definitely pays to do your homework, comparing cheap auto insurance provided by different companies. If you are looking for the right kind of cheap auto insurance quotes, it becomes imperative to choose your insurer carefully.

Every state has somewhat different sets of rules concerning auto insurance. For example, in most cases, the state requires you to carry a minimum amount of liability coverage. This coverage pays for damages you may have been at fault for during an accident. Conversely, some states may allow for no-fault cheap auto insurance policies. Coverage of medical costs, both for you and your passengers, is optional in some states. You can find out your state’s specific requirements from your insurance company.

Filling in your insurance application is the next step in the process. Be clear and honest when giving all pertinent information related to your vehicle, people who might use it, your driving record, the list of optional safety features your car has, and when answering other questions the form requires. Go through the insurance policy in detail. Sit with your insurer and ask questions. Find out whether you are eligible for any discounts. Find out the number of premiums you have to pay and whether it is possible to cancel your policy early, if you need to do so for any reason. Such information is vital to know before you take a cheap auto insurance policy. This discussion with your insurance agency could also take place periodically, possibly once or twice a year. Always carry your company-issued proof-of-insurance card with you when driving, as it is required by law in many states.