Motor Insurance: 3 Main Policies
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Motor insuranceis something you must have if you wish to operate a motor vehicle on any type of highway or road. Here we look at some important points worth knowing about.
Motor insuranceis something you must have if you wish to operate a motor vehicle on any type of highway or road. Here we look at some important points worth knowing about.
There are three different kinds of insurance plans for operating a motor vehicle. They include:
• Third party only
• Third party fire and theft
• Comprehensive
If you go with third party plan then as a driver you will be protected against liability in the event that damage occurs to a third party’s vehicle or property. This insurance policy also will be beneficial if an injury occurs to a third party.
The next kind of motor insurance is third party fire and theft. In this case you have third party coverage but you also have extra coverage in the event that your car is stolen or is damaged or destroyed by fire.
Comprehensive is the third type of insurance plan. As the name implies this is a comprehensive policy. It includes third party fire and theft as well as offering protection for any accidental damage that occurs to your car. It also offers liability towards any third party that is involved.
Insurance premiums can vary tremendously from one insurance provider to another. This is something that you must bear in mind when it comes to motor insurance (autoinsurance, motorinsurance). The kind of insurance you need plays a role in the decision making process. So does other things such as the make of an automobile, the model and the age of it. Never take the lazy route and select the first quote you come across because it sounds good. Shop around and do some checking before you apply for an insurance policy. It helps to get as many as three quotes. If you have time to get four or five then all the better for you! Doing this can save you a tremendous amount of money on premiums.
Other factors that can play a role in the premiums you pay for motor insurance (autoinsurance, motorinsurance) include your claims history, the number of years you have been driving, and whether your car is used for personal use and/or for business use.
If you have ever heard of a no-claims discount (NCD) then this is something you need to know about. A NCD is a discount offered by an insurance company for every year of “claim-free” or “accident-free” driving under the insured individual’s name. Most companies will offer their customers a 10 percent NCD every year if no claims are made. This is up to a maximum of 50 percent.
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Cheap Motor Insurance
Finding an attractive and cheap motor insurance policy requires a lot of research and careful analysis. A seemingly similar insurance policy might be hugely different in terms of its deliverables. Therefore, even if the price is most attractive, the underlying contract should be the deciding factor.
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Call the police and file an accident report: If you cannot get through on the phone, visit the police station or website. If they issue you a copy of the report, keep it safely.
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Call your insurance company and notify them of the accident without any delay: The insurer will send an insurance adjuster to review the situation. If the accident was not your fault, you can get the other party’s insurers to pay for the damages.
Motor Insurance Companies
However, different companies define different rules for their coverage and mention them in their insurance contract papers. For example, they might have theft and damage coverage as a single policy or as separate policies.
Motor Insurance Company: Compulsory Excess
The insured party always pays a certain amount of money to the mechanic at the time of repair before the actual claim comes in from the insurance company. This amount is called the deductible and the least amount that the motor insurance company agrees to is the compulsory excess.
Different motor insurance companies use different methods of calculating the compulsory excess, if it is not already defined by the government.
Motor Insurance Company: Collision and Comprehensive Coverage
For motor insurance companies, collision and comprehensive coverage are two most commonly inquired terms. Collision coverage insures the vehicle against collisions and pays the amount required for repairing. This form of coverage is optional and is known as (LDW) Loss Damage Waiver or (CDW) Collision Damage Waiver in the car rental industry.
Comprehensive coverage, on the other hand, is the coverage that protects against any damage caused by reasons other than collision, such as theft, fire, weather impacts, vandalism, etc.
