Auto Insurance
August 20th, 2008 | by admin |
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Auto Insurance
Auto insurance is, as the name suggests, the insurance of an automobile which is mandatory at the time of the purchase of that vehicle. In some countries auto insurance policies are handled by the government but in the U. S. private firms handle auto insurance policies.
Auto insurance generally covers claims pertaining to theft, fire, accident, or damage due to a road accident. Different countries have different criteria for giving out auto insurance. While some countries take into account only the model of the vehicle others also take into consideration various other factors like sex, marital status, age, past driving record, etc.
Unlike life insurance or health insurance, auto insurance for a given vehicle comes in fixed packages. Different vehicles have different amount stipulated as auto insurance depending on the cost price and the condition of the vehicle. Hence a person will have to pay a lower premium amount for a motorcycle than he would have to pay for his truck or his brand new car. Also unlike life insurance or a health insurance where one can purchase insurance for the life or health of more than one person, there is no such thing for auto insurance. No matter how many vehicles you own, you will have to pay individual auto insurance payments for each one of them.
Eligibility of Claim For Auto Insurance
The owner is entitled to get an auto insurance claim on his/her vehicle even if he/she were not present at the time of accident under certain conditions-
- The driver was holding a valid driving license.
- The driver was holding an effective learner’s license.
The average Auto Insurance Policy covers your vehicle for most purposes except a few which are:
1. Hiring a vehicle, or giving it away in reward.
2. The vehicle is carrying goods other than personal luggage or samples.
3. The vehicle is used in organized racing.
4. The vehicle is used in Pace Making
5. The vehicle is used in Speed Testing and Reliability test.
6. The vehicle is used in connection with the Motor trade.
In each of these categories either the Auto Insurance Company refrains from giving out the insurance or it demands a higher policy amount.
Items Covered Under Auto Insurance
An auto insurance policy can cover a few or all of the items listed below:
- The insured auto or vehicle, of course
- The insured party
- The third party (comprising both vehicle and the people).
Granting An Insurance Claim
Due to several instances of foul play reported with regards to the claims made by an owner for the insurance of his vehicle, the auto insurance company takes extra precaution while making out these claims. If the claim is a relatively small one then no major investigation is done. But, if the auto insurance claim is for a lot of damage then they check out all the aspects of the accident before parting with their money. A person must go through his auto insurance policy before making out a claim so that they know what is covered and what is not covered.
As a precaution, the policy holder should actually go through their policy when the first get it and ask the insurance company any questions they may have regarding the policy.