Car Insurance

Everything You Need To Know About Auto Insurance!

Everything You Need To Know About Auto Insurance!

Everything You Need To Know About Auto Insurance!

Auto Insurance is referred to as the arrangement between you and a company that shoulders the responsibility of compensating you for any loss you have incurred. This includes the death of a family member; the destruction of any property including your house, car or even yourself, i.e. if any body part of yours was insured and it had then been injured; the expenses required for the treatment would be covered by your insurance. If you had insured your life and then passed away unexpectedly then your heirs/successors would reap the benefits provided by the insurance company.

This article focuses on auto mobile insurance.

What is an Auto Insurance?

Car Insurance is mandatory in most countries and provides you with adequate financial protection in case of any mishap involving your car; accident, theft etc.
In exchange for you paying a certain amount of money each month, the company takes care of any damage in the form of:

The amount you have to pay per month differs according to the plan that you have taken as auto insurance is flexible and priced according to your customizations. Policies are usually taken out for a couple of months or a year and are renewable.

What is covered under auto insurance?

Auto policies differ; however the majority of them insure you and your family and anyone who was in control of your car at the time (with your knowledge).

Auto policies generally only cover personal driving. For example, if you’re driving your car to work, on the way to a recreational outing or any other personal reasons. Your policy, however, does not extend to operation of your vehicle for commercial purposes. For instance, meeting with clients to discuss business opportunities, delivering services on behalf of your employer, etc.

Car Insurance also doesn’t cover your vehicle if your job is inclusive of transporting people from one destination to another.

Compulsory auto insurance:

Automobile insurance requirements vary from country to country and the requirements also differ based on which company you take the insurance from. Although, most lenders require:

Physical injuries liability:
Covers the expenses incurred if you cause harm or even death of another driver while commuting in your vehicle.

Asset liability:
Refunds the damages caused by you or anyone else driving your car at the time when damages were incurred.

Other types of auto insurance:

Gap insurance:

The depreciation value of cars increases in compounds yearly. The insurance only covers the commercial value of your car; not what you had originally paid for it. Therefore at the time of insurance claim there may be a gap between what you paid for the car and what the insurance company actually pays you. Gap insurance takes care of this and makes sure that you’re reimbursed how much ever your car’s original market value was.

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