Know More About Car Insurance

Car insurance is also known as vehicle insurance, motor insurance or auto insurance.  These are basically taken to safeguard vehicles which include cars and trucks against accidents and the liability the owners might incur during the accident.

It is not surprising to know that a lot of countries insist on having car insurance. While this is completely in the interest of the citizens of that country, there are some who violate these conditions intentionally.

When we speak about car insurance, there are a few things that are covered within the policy and there are some which are not even considered. The insured party, the insured vehicle and the third party may be covered in certain insurance policies. Some vehicles may also be insured against theft, fire and accidents, however these terms and conditions are different for different policies.

An excess payment in car insurance is the contribution that you must make each time you claim your policy and the car goes for repair to the local garage.  A minimum excess on the other hand is the minimum amount of money your insurer will collect on your policy. This amount can vary from person to person as the financial capability of the person involved is taken into consideration here.  If you wish to reduce your insurance premium, you can volunteer to pay a higher excess amount that is desired by your policy and is set according to your financial capabilities. This is known as the ‘voluntary excess’.

Some facts on Car Insurance

•    It differs from country to country but the insurance premium on the car insurance you apply for can be regulated by the government of your country or by the insurance company. When the government of the country does not play a part in finalizing the insurance premium, the insurance companies set it taking various variables into consideration which may have an impact on the expected cost of claim.

•    Gender, surprisingly has played a part in determining the insurance premium of car insurance. According to studies, men drive more miles than women do and hence have a higher rate of getting into accidents than women. This has led to insurance companies keeping lower rates for women and higher for men.

•    For those students who maintain a good academic record and live away from home, a large number of insurance companies offer discounts for their car insurance. This motivates the children to maintain their record and thus fare well too. After the age of 25, premiums are usually lower and senior citizens can benefit from their retirement discounts too. For those who are married, a lower insurance premium is demanded than from those who aren’t.

Taking car insurance may be mandatory in your country and you must adhere to rules. However, before applying and accepting your insurance from the insurance company, you may need to do a detailed check and analysis of what is in store for you. The terms and definitions may get quite confusing and it is in your best interest to understand them thoroughly before signing on the dotted line. There are loopholes in agreements everywhere and if you are smart enough to catch them, you won’t be cheated of your hard earned money!

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