Auto Insurance:

Coverage typically includes:

Auto Insurance

• Property coverage, for damage to or theft of the car
• Liability coverage, for the legal responsibility to others for bodily injury or property damage
• Medical coverage, for the cost of treating injuries, rehabilitation and sometimes lost wages and funeral expenses
• COVERAGE LEVELS:

Auto insurance can cover some or all of the following items:

• The insured party (medical payments)
• Property damage caused by the insured
• The insured vehicle (physical damage)
• Third parties (car and people, property damage and bodily injury)
• Third party, fire and theft
• In some jurisdictions coverage for injuries to persons riding in the insured vehicle is available without regard to fault in the auto accident (No Fault Auto Insurance)
• The cost to rent a vehicle if yours is damaged.
• The cost to tow your vehicle to a repair facility.
• Accidents involving uninsured motorists.

Different policies specify the circumstances under which each item is covered. For example, a vehicle can be insured against theft, fire damage, or accident damage independently.

If a vehicle is declared a total loss and the vehicle’s market value is less than the amount that is still owed to the bank that is financing the vehicle, GAP Insurance may cover the difference. Not all auto insurance policies include GAP insurance. GAP insurance is often offered by the finance company at time the vehicle is purchased.

DEDUCTIBLE: (Excess Payment)

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 auto 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 “total loss”), then the insurance company will deduct the excess agreed on the policy from the settlement payment it makes to the owner.

If the accident was the other driver’s fault, and this fault is accepted by the third party’s insurer, then the vehicle owner may be able to reclaim the excess payment from the other person’s insurance company.

Compulsory excess

A compulsory excess is the minimum excess payment the insurer will accept on the insurance policy. Minimum excesses vary according to the personal details, driving record and the insurance company.

Voluntary excess

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, auto insurance, auto insurance, auto insurance