A high number of car accidents occur each year. It is important that everyone who drives a car, whether you are the driver or the passenger, has auto insurance. Even if it’s the cheapest insurance policy available.
A policyholder is covered by insurance. In most cases, the policy also covers any other persons who drive the vehicle. If the accident happens in violation of an agreement between the policyholder or the insurance company, then the insurance policy will not pay for the damages.
The third party liability insurance covers the vehicle if it is sold to another owner. Comprehensive car insurance policies are also available for the new owner if they exist. All deductibles will be covered by the new owner of the car if there is an active insurance policy.
Auto insurance doesn’t cover damage to vehicles that are in the company’s possession for the purpose of selling
You may not need to notify your insurer if the terms of the policy agreement have changed depending on what car insurance policy you have with them. Failure to notify the insurance company could lead to forfeiture of indemnity if there is an accident, reduction of indemnity if compensation or lapses of payment if indemnity.
To avoid these consequences, notify your insurance company immediately if there are any changes to the policy information.
It is possible to purchase auto insurance from different companies without having to terminate your existing insurance. However, if an accident does occur, the agreement in your policy will apply. This could mean that each company pays half of the accident costs.
Auto insurance also includes deductibles. They are determined based on the terms of the policy. In the event of an accident involving third party liability or damages under comprehensive auto insurance, deductibles will only be deducted once.
Situations such as these will not be covered by the deductible
1. Damages resulting from a known liable tortfeasor
2. Fire, explosions, lightening and theft may cause damages
3. Car damage from objects falling on it
Additional deductibles will apply if the vehicle is damaged by someone other than the policyholder or registered user under the auto insurance policy.
You may not be covered by your auto insurance policy for certain accidents. Your liability insurance does not apply to your auto inside policy.
1. Driver injury
2. Transport of goods on roads under contract: Damage
3. Vehicle damage
4. Damage to the vehicle that was not caused by the rental agreement
5. Items damaged by the policyholder, driver, or any other regular user of the auto insurance policy.
The comprehensive auto insurance does not cover the following:
1. Weather-related damage
2. If it can be proven that damage was caused by driving or fire, then you cannot repair damaged parts of your car.
3. Damage to the electrics and mechanical parts of your vehicle, unless you can prove that it was damaged in accordance with your auto insurance policy
4. Ridiculous driving can cause damage, e.g. Overheating, no oil change
5. Damage to the vehicle while it was being rented
6. Damage caused by intoxication
7. Grid negligence may cause damage
8. Car loss due to car seizure by law enforcement authorities
9. Guaranteed and warranted damage
10. Wear and tear on the car, scratches and other damage from use.
The agreement between the policyholder and the insurer determines the length of the auto insurance policy. Auto insurance agreements are usually annual. They are renewed annually unless the policyholder cancels in writing or the insurance company gives a month’s advance notice.
