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Auto Insurance Company – Assuring You Of A Safe Drive
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Posted On :
Dec-19-2009
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Article Word Count :
499
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Before driving your car on the public roads, it is very essential that you insure it with an auto insurance company. The first thing that the new car owner has to do is to check the driving rules of his country. Some of the countries impose mandatory policies regarding the insurance of vehicles.
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Before driving your car on the public roads, it is very essential that you insure it with an auto insurance company. The first thing that the new car owner has to do is to check the driving rules of his country. Some of the countries impose mandatory policies regarding the insurance of vehicles. Non-compliance of these rules may lead to penalization, revocation of license or even imprisonment in some cases. There are numerous types of car insurance policies and a vehicle owner is free to choose any of the policies that suit him the best.
Types Of Insurance Covers Offered By An Auto Insurance Company
1. Liability insurance: This is also known as third party insurance. A coverage under this type of insurance undertakes to pay to a third person any losses and damages caused by the insured vehicle due to the fault of the insured.
2. Collision and comprehensive insurance: This type of insurance covers almost all the aspects of damages and losses. If your car collides with another vehicle, you will be paid the repair charges under the collision coverage. Apart from this, you will be paid for damages caused due to other reasons like theft, fire, weather and destruction caused due to animals etc.
3. Personal injury protection, medical and no fault insurance: Under this insurance, the company pays you despite of who is at fault to cover the medical expenses that you and your passengers face.
4. Uninsured / underinsured insurance: Coverage under this type of insurance will protect you against damages caused due to the fault of uninsured / underinsured motorists.
Towing, labor and rental reimbursement: These are some of the additional coverage factors, which may or may not be included in the policies of a car insurance company. Under this coverage, you will be reimbursed for the rental charges and car towing charges in case of damages caused to the vehicle.
Basis Of Calculation Of Premium
Now that you have an idea of the types of car insurance, you must now know on which basis the auto insurance company charges the premium. Usually in some of the countries, the government regulates the insurance premium charges. However, in rest of the cases, the insurance company decides the premium based upon actuarial calculations worked out in accordance to the government’s framework of rules and regulations. The following factors, which are supposed to have an effect on the future cost of claims, usually form the basis of premium calculation.
• The type of insurance coverage.
• Characteristics of the car.
• Usage of the car.
• The car driver’s profile.
While taking an insurance policy from a motor insurance company, you should ensure that the company provides you with a policy that covers all the minimum requirements. A good auto insurance company will definitely offer you necessary guidance to work out a satisfactory deal.
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Article Source :
http://www.articleseen.com/Article_Auto Insurance Company – Assuring You Of A Safe Drive_7349.aspx
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Author Resource :
There are certain steps that you must follow to select the right auto insurance company. Visit the Finance Enquiry website to know about the essentials of auto insurance.
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Keywords :
Auto Insurance Company, Auto Insurance, Auto Loans, Finance Enquiry,
Category :
Finance
:
Insurance
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