If you have a car, you probably already have some information about auto insurance. You are probably familiar terms such as "insurance payment" and "premium." But do you understand the various aspects of the auto insurance policy and know how to choose the right kind of insurance? Forty-seven countries require car owners have at least one type of car insurance. Therefore, it is useful to know what the law requires of you and what additional or alternative types of insurance can help protect you in the case of an incident.
Before buying auto insurance, you should take into account the following factors: the brand of the vehicle, driving experience and how much money you have. Knowledge of the basics of auto insurance will give you confidence that the selected type of car insurance will protect their interests in a traffic accident.
In this article, we will become familiar with the different types of insurance that insurance companies offer and discuss possible insurance claims. Besides this, we will consider the factors that affect the value of the amount of auto insurance, how to reduce the cost of it and their rights under the insurance policy. First, we look at the different types of insurance.
Types of insurance of vehicle owners
Insurance is required for each driver. In fact, in many countries, it is a requirement enshrined in law. Along with buying auto insurance, an insurance policy is obtained. The choice of your policy depends on the brand of your car as well as the desired type of insurance. The owner of the vehicle insurance policy is actually a different area of insurance coverage. When choosing an insurance policy, it is necessary to carefully examine the various types of insurance offered by insurance companies.
Some types of insurance may be mandatory in your country and other optional. Liability insurance – insurance, whose purpose is the liability insured for bodily injury or property damage. The responsibility for causing physical harm to include the cost of medical care and financial compensation for moral and pay the victim damages.
Liability for damage to property includes payments for damage to private property or vehicle. This insurance also covers legal services and legal fees. The amount of liability insurance is defined by the law of the country, but a person can purchase additional insurance in case of an accident.
Comprehensive car insurance
Comprehensive car insurance covers against theft or damage to the insured vehicle when the damage is not the result of an accident. This kind of comprehensive insurance includes payments for damages in a vehicle fire, hurricane, hail, flood, vandalism and theft. Health insurance includes payment for the provision of health care provider if any of the insured events (including traffic accidents). In the case of damage to individual insurance, it is required in some countries.
With this type of insurance coverage, the insured driver offsets the costs of medical care and rehabilitation in case of an accident.
Uninsured motorist insurance
This type of insurance includes compensation for damage to your vehicle to another driver if the perpetrator of the incident does not have liability insurance. It can also be used for insurance protection against uninsured motorists as necessary.
Insurance protection against rental expenses provides reimbursement for damages the driver has to endure due to the inability to operate a damaged vehicle, allowing them to rent a vehicle. Usually, this type of insurance has a fixed amount paid for the rental vehicle. Most insurance policies include some of the above types of insurance. When choosing a particular type of your car insurance, the first thing you have to do is familiarize yourself with the laws of their country.
The law establishes a mandatory liability insurance of vehicle owners.
Now, let's talk about the factors that will help determine your insurance needs of the vehicle. The fact that your country has a mandatory insurance does not mean that this is it, and you have to buy.
In fact, most drivers buy other types of insurance from several insurance cases and not only minor traffic accidents. Determine your insurance needs will help the following five principles:
1. Check your local jurisdiction
Remember that liability insurance is compulsory in 47 countries. Liability insurance covers the costs of medical care and loss of income in case of an accident. The amount of liability insurance policy set by the state, but as a general rule, most motorists prefer to buy additional insurance.
2. See a list of alternatives
Understanding what to really expect when insuring your car will help you make the right choice. Need a rental expenses insurance if your car is damaged? Do you need additional insurance against the costs of spare parts and repair in case of breakage of your car? If your car is leased, it is likely to have insurance and compensation so that in case of accident, insurance companies will pay the difference.
3. Determine what you are willing to spend
Once you are familiar with the laws of the country and your insurance needs are analyzed, you should explore the components of an insurance policy. If you are responsible for an accident and therefore have only a policy of compulsory liability insurance, the insurer may require carrying insurance payments on account of the injured party. Therefore, it is necessary to know the size of the sums of insurance payments and insurance that you will have to incur in the event of an accident.
Do not forget to find out if your insurance will pay for insurance if you hit someone else's car. What is the amount of money you have to pay them? The answers to these questions are an overview of what type of insurance you should choose to feel safe in contact with the car accident.
4. Find out what happens during a collision
Consult your vehicle if your car is completely broken, see if you can buy a new one? If not, would you like to know the wide coverage in the event of a collision? The decision to purchase this type of insurance is generally based on the value of your car. If the value of the car is less than $2,000, the acquisition of this type of insurance is not profitable for you. It is reasonable to buy insurance in case of collision shown in the event that the value of your car is $50,000. The annual payment of $200 guarantees you will get a new car that comes into contact in a serious accident.
5. Examine your needs
Many people do not know what other types of insurance such as health insurance and property insurance can compensate for its loss in case of an accident. For example, if you have comprehensive health insurance, buying insurance in case of injury to the person will be enough for you. If we study existing insurance protect you from buying unnecessary insurance. The best way to determine your needs in the field of auto insurance is the analysis of existing insurance policies and determine the amount of money you are willing to spend. For example, if you have a cheap car, buying insurance in case of collision is not appropriate to act due to car repairs will cost much cheaper.
Article sources
http://www.carinsurance.com/
http://www.21st.com/insurance-newsletters/2012/01/5-types-of-car-insurance-coverage.htm