Archive for July, 2009
People generally are obsessed with saving up so that they can buy that dream on four wheels, a car! Among all other material possessions an individual has, a car usually holds a very important place in the special scheme of things.
An individual involved in a road accident, a collision may be, can hardly say, “I collided with a stationary pick-up coming down the road!” Thus insurance is no laughing matter.
Insurance can be categorized in two, Life Insurance and General Insurance. The loss in case of life insurance can not be made good but compensatory amount can help the family left behind. Car insurance will fall under the category of General Insurance.
Car Insurance: Is it a costly affair?
Insurance results in the insured bearing some expenses that in turn provides adequate cover. Car owners spend huge amounts on accessories like upholstery, car fresheners etc, and making the vehicle a royal chariot. But there’s a certain hesitation in spending money on insurance which is of greater importance. People do not want to spend on insurance since they are confident of not damaging their cars. However accidents occur without prior intimation. Car insurance though costs a significant amount according to the car being insured, is important and certainly not avoidable. Once damaged, the owner surely loses, probably the most expensive possession and has no clue on how to make good the loss. Most of us would agree that paying a premium is better than losing the dream of owning a car again in the future when it is destroyed. It will also be wise to note that many countries require owners, to compulsorily to insure their assets, thus making it a legal obligation.
An auto insurance cover not only protects the car of the insured but also covers expenses in case of another vehicle being damaged in the mishap. Insurance for young drivers and women are categorized separately by several insurance companies.
Preliminary measures to apply for Insurance
There are a few basic steps that need to be followed to apply for auto insurance. They can be enlisted in the following manner.
• Making an Application
Making an application to an insurance company after careful analysis of various offers available in the market is the very first step in the process.
• Providing & acquiring relevant Information
The applicant needs to disclose all material information necessary to get an insurance cover. Also it is important to get information on the cover provided, the clauses of claim settlement, age and driving record, make of the vehicle, and usage pattern among other things before deciding on a particular policy.
Insurers categorize risks in order to decide premium amount. The factors considered are age, gender, mileage as well as the purpose of having bought the vehicle.
Auto Insurance Types
A few are listed below. Different insurers provide different auto insurance products.
• Liability Insurance wherein any damage even if it is caused to another vehicle is taken care of by the insurance company.
• Collision Insurance takes care of damages caused due to collisions considering both, partial and total damage.
• Comprehensive Insurance provides cover to the insured in case of all risks except collision like theft, fire etc.
• Uninsured is a kind of coverage that protects the insured when the other party involved in the accident is not covered under any policy.
How do I reduce my insurance costs yet get the best cover available?
Insurance costs can sky rocket if not planned carefully since it is one of the major costs of maintaining a vehicle today, unless you count the fuel costs of actually running one!!!
The measures are fairly simple and easy to put in practice.
• Buy a car that is good to use but low on maintenance expenses.
• Insure only that which needs insurance, not the entire gamut of accessories.
• It is also advisable to anticipate the repair costs in case of damage.
• Using auto-theft devices is also a preventive measure.
• Duplication of medical cover may lead to increase in premium expenditure.
• While insuring, it is a good idea to find out the conditions on which discounts become applicable.
• Make it a point to research thoroughly before deciding on a particular company, this will ensure that you get the best deal available in the market with respect to your requirement and the make of the car.
• Getting the insurance policies from the same company is a sensible decision since many companies offer discount packages on multiple policies.
• Always analyze the insurance requirements beforehand so that extra insurance need not be taken later resulting in extra expenditure.
• Any change in material facts need to be communicated to the insurance company so as to avoid hassles in case a claim arises.
• Parking your vehicle in the right spot will also help reduce the chances of a stationary accident.
• And the simplest solution of all, be a careful and safe driver; at the same time propagate the idea on as wide a scale as possible.
How does car insurance work in case of an accident?
The extent of damage in an accident is one of the vital considerations during claim settlement. The primary aim of an auto insurance claim settlement is to help the insured regain the pre-accident position enduring minimum trouble. After the accident is reported to the respective authorities, the insurance company’s representative will investigate the authenticity of the claim, assess the damage and submit a report. The entire process includes vigorous investigation and reviews. The payment is made as per the damage determined by the company’s representative, since insurance is provided as a compensatory benefit and not as a profit making avenue. In case of the entire vehicle being damaged and which is beyond repair, the amount agreed at the policy making stage may be paid, condition, no foul play suspected.
Different countries have norms set where insurance is concerned; many countries have strict rules and legal obligations. But getting bogged down by the legalities and other codes is just not the happening thing to do for car owners; the only solution to combat likely problems is applying for car insurance and be done with it!!!
