Vehicle insurance (also known as car insurance, motor insurance, or auto insurance) is insurance for cars, trucks, motorcycles, and other road vehicles. Its primary use is to provide financial protection against physical damage or bodily injury resulting from traffic collisions and against liability that could also arise from incidents in a vehicle. Vehicle insurance may additionally offer financial protection against theft of the vehicle, and against damage to the vehicle sustained from events other than traffic collisions, such as keying, weather or natural disasters, and damage sustained by colliding with stationary objects. The specific terms of vehicle insurance vary with legal regulations in each region.
In 1930, the UK Government introduced a law that required every person who used a vehicle on the road to have at least third-party personal injury insurance. Today, this law is defined by the Road Traffic Act 1988, (generally referred to as the RTA 1988 as amended) which was last modified in 1991. The Act requires that motorists either be insured, or have made a specified deposit (£500,000 in 1991) and keeps the sum deposited with the Accountant General of the Supreme Court, against liability for injuries to others (including passengers) and for damage to other persons' property, resulting from use of a vehicle on a public road or in other public places.
Auto insurance isn’t only great protection for your vehicle, it’s also the law. All states require some degree of insurance for your vehicle to protect you and other motorists. Coverage requirements will vary based on your financial responsibility for your car and your state’s requirements. Some states even require you to have liability insurance before you even get a license.
An excess payment, also known as a deductible, is a fixed contribution that must be paid each time a car is repaired with the charges billed to an automotive insurance policy. Normally this payment is made directly to the accident repair "garage" (the term "garage" refers to an establishment where vehicles are serviced and repaired) when the owner collects the car. If one's car is declared to be a "write off" (or "totaled"), then the insurance company will deduct the excess agreed on the policy from the settlement payment it makes to the owner.
The minimum coverage defined by German law for car liability insurance / third party personal insurance is €7,500,000 for bodily injury (damage to people), €500,000 euro for property damage and €50,000 for financial/fortune loss which is in no direct or indirect coherence with bodily injury or property damage. Insurance companies usually offer all-in/combined single limit insurances of €50,000,000 or €100,000,000 (about €141,000,000) for bodily injury, property damage and other financial/fortune loss (usually with a bodily injury coverage limitation of €8-15,000,000 for each bodily injured person).
To reduce the insurance premium, the insured party may offer to pay a higher excess (deductible) than the compulsory excess demanded by the insurance company. The voluntary excess is the extra amount, over and above the compulsory excess, that is agreed to be paid in the event of a claim on the policy. As a bigger excess reduces the financial risk carried by the insurer, the insurer is able to offer a significantly lower premium.
Auto insurance in India deals with the insurance covers for the loss or damage caused to the automobile or its parts due to natural and man-made calamities. It provides accident cover for individual owners of the vehicle while driving and also for passengers and third party legal liability. There are certain general insurance companies who also offer online insurance service for the vehicle.
Yes, you surely can avail the NCB if you change your insurance provider at the time of renewing the policy. All you would need to do is producing a proof of the earned NCB from your current insurance provider. You can produce the original copy of your expiring policy and a certification that you haven’t filed any claim for the (expiring) insurance plan. A renewal notice or a letter stating that you’re entitled to the NCB from your previous insurance provider can be a proof for this.
The 12-month policy will generally start on the date that the last car insurance is up for renewal, with short-term cover used to protect the other cars in the interim. For example, if you have one car that needs to be insured from February and another in June, the February car will be insured first but the policy will actually renew in June when both cars are covered. After the last car has been insured for a full 12 months, the policy will renew each year until you choose another policy.
Also, concessions are given to customers who have a valid membership of recognized automobile associations, like Western Automobile Association, Automobile Association of Eastern India, Automotive Research Association of India and Automobile Association of Southern India. If you have an excellent claim free driving record, then you should opt for a high ‘voluntary deductible’ amount. It is an amount which you need to pay before the insurer pays claim amount. Also, you should check for loyalty discounts if you are renewing the insurance policy with your present insurance company. Professionals like doctors, chartered accountants and government employees are entitled to avail special discounts. It is noteworthy to state that you will become eligible to get discounts only if your policy is not lapsed.
Insurance companies have started using credit ratings of their policyholders to determine risk. Drivers with good credit scores get lower insurance premiums, as it is believed that they are more financially stable, more responsible and have the financial means to better maintain their vehicles. Those with lower credit scores can have their premiums raised or insurance canceled outright. It has been shown that good drivers with spotty credit records could be charged higher premiums than bad drivers with good credit records.
Direct Line general insurance policies are underwritten by U K Insurance Limited. Registered office: The Wharf, Neville Street, Leeds LS1 4AZ Registered in England and Wales No.1179980. U K Insurance Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Registration number 202810. The Financial Services Register can be accessed through www.fca.org.uk.
If a vehicle is to be "laid up" for whatever reason, a Statutory Off Road Notification (SORN) must be submitted to the DVLA to declare that the vehicle is off the public roads and will not return to them unless the SORN is cancelled by the vehicle's owner. Once a vehicle has been declared 'SORN' then the legal requirement to insure it ceases, although many vehicle owners may desire to maintain cover for loss of or damage to the vehicle while it is off the road. A vehicle that is then to be put back on the road must be subject to a new application for VED and be insured. Part of the VED application requires an electronic check of the MID, in this way the lawful presence of a vehicle on the road for both VED and insurance purposes is reinforced. It follows that the only circumstances in which a vehicle can have no insurance is if it has a valid SORN; was exempted from SORN (as untaxed on or before 31 October 1998 and has had no tax or SORN activity since); is recorded as 'stolen and not recovered' by the Police; is between registered keepers; or is scrapped.
Those not exempted from obtaining insurance must obtain a certificate of insurance from their insurance provider, and display a portion of this (an insurance disc) on their vehicles' windscreen (if fitted). The certificate in full must be presented to a police station within ten days if requested by an officer. Proof of having insurance or an exemption must also be provided to pay for the motor tax.
A compulsory car insurance scheme was first introduced in the United Kingdom with the Road Traffic Act 1930. This ensured that all vehicle owners and drivers had to be insured for their liability for injury or death to third parties whilst their vehicle was being used on a public road. Germany enacted similar legislation in 1939 called the "Act on the Implementation of Compulsory Insurance for Motor Vehicle Owners."
A lot goes into an auto insurance rate quote, including your ZIP code, coverage levels, marital status, annual mileage, driving history and vehicle make, year and model. In most states, your gender and credit history are also used to determine rates. And again, the reason auto insurance comparison shopping is so important is because rates between companies are different for each person, too.