Auto Insurance

Auto Insurance

The term auto insurance deals with the policy purchased by the owner of veichle to get sum of libereal expenses caused due to an accident or damage to or from the auto which they own.The main aim of the auto insurance is to provide financial protection to the damage caused due to accident or collisions.These days we can see how the use of auto's have rapidly increased and made it more dangerous so everyone are willing for auto insurance to safe guard their properties.

There was no compulsion for auto insurance for public before.But in United Kingdom It was made compulsory after the implementation of Road traffic Act 1930 which was followed by Germany on year 1939.This helps to ensure the owner's and operator's had to be insured to claim the laiblity for injuries or death of driver or third party by an accident or collisions.

Nowadays,Auto insurance is compulsory in most of countries of world.The premium for auto insurance are generally annual that means the insurer have to pay some amount of money to insurance company annually which depends upon terms and conditions of insurance company which varies according to personal details,driving records,age and so on.

The insurance company covers the following expenses depending upon their policies

1. Medical expenses after accident or collisions.(Expenses for treatmemt after accident)
2. Expense for physical damage to vehicles.(Expenses for repairing the vehicles)
3. Liablity for third party,Fire,Theft.(Loss caused due to fire,theft)
4. Accident involing uninsured motorist.

The insurance company only pays for what you have insured.For an example,If you have not insured your auto for damage caused by fire then you cannot claim for damage caused by fire.

Cases that auto insurance covers

1)Bodily injury coverage
If you are injured on an accident then auto insurance policy pays the medical expenses for your treatment which you are liable to claim.

2)Collision coverage
This case covers all the aspects releated with the physical damage incured to your vehicle caused by an accident.

3)Comprehensive coverage
This coverage covers the expenses for the damage caused by fire,theft,animals,hiting by object rather than accident or collisions.

4)Covered loss
This case enrolls all the expenses for the damage to owner,vehicle,people or their property according to the insurance policy which may differ according to company.

5)Uninsured driver bodily injury coverage
This pays you for the medical expenses when you are injured in an accident and responsible person is not insured or no contact simply hit and run cases.

6)Laiblity coverage
This term covers the expenses to your vehicle due to other's or third parties fault.

7)Deductible coverage
It is a amount that you receive from insurance company for the expense that you have made from your pocket to repair the damage caused to your vehicle.

8)Occasional driver coverage
It is a amount that you can claim for the damage to your veichles caused by occasional or secondary driver rather than usual driver.

Some terms releated to auto insurance

1)Policy term
It is the time period of the insurance which depends on the policy of insurance company.

2)Auto premium
It is the small amount of money that you  pay to insurance company to  insure your auto.

3)Policy expiration
It is the end of time of the insurance you have made which depends on the plan that you choosed at the starting of insurance.

4)Vehicle Identification Number(VIN)
It is a number or combimation of alphabet along with number usually found on the driver's side dashboard made of combination of 17 letters and numbers that can be used to identify your vehicles.

5)CTP 
Compulsory Third Party Personal Injury (CTP) insurance associates with the registration of a vehicle. It is transferred when a vehicle already registered is sold. It ensures the vehicle owner and driver's against claims for liability in case of the death or injury to people caused by the fault of the owner or driver, but not for damage. It covers the cost of all reasonable medical treatment for injuries caused in an accident covering the loss of wages, cost of care services, and even compensation for pain and suffering in few cases.

In most of the countries now it have been compulsory for auto insurance before it on used on public roads.Several country have strict rules for the owners who doesnot insures their vehicles.It have been mandatory requirement in todays world.Even in some countries police seizes the uninsured vehicles.The most common policies that are being sold now days are third party,fire,theft.Few of the auto insurance company also offers the cost to rent a vehicles if your vehicles is damaged.However to claim your insurance you will be asked to submit a brief police case containing all the details.

To culminate our article let us tell you a brief summary of the auto insurance:-

In short,Auto insurance is a type of insurance that provide laiblities to the damage caused to your vehicles.In present time it have been a compulsion of insuring the vehicles that you own over most of countries.We have to pay someamount as premium annually to insure our auto.Auto insurance removes the burden to the expenses caused to or by your auto covering all the physical damage,bodily injuries depending on the policies of the insurance company.