A Beginner's Guide to Car Insurance. Accidents happen, and when they do, insurance is what keeps our finances safe and sound. Whether an auto collision is your fault or somebody else's, your car insurance coverage should help you. How much it helps, however, is up to you, and this is determined by the combination of options that comprise your insurance policy. Buying Car Insurance In order to protect yourself without overpaying, explore the factors you should consider in putting together the right coverage for your vehicle, as well as how to select a good insurance company that will handle your claims if an accident happens. It can be confusing, but remember that taking it step-by-step makes it a much easier experience.
To figure out what works best for your car insurance needs—and your budget—think through the following four issues. Personal injury and personal liability Always put your and your family's safety before anything else. Uninsured drivers Major accidents Getting stranded Deductible vs. premium Don't Overdo It. Motor, Sports, Classic Vintage Car Motor Insurance Online. 3 Ways to Get Cheap Car Insurance. What is Auto Insurance? Understanding auto insurance—the basics Auto insurance is a contract between you and the insurance company that protects you against financial loss in the event of an accident or theft. In exchange for your paying a premium, the insurance company agrees to pay your losses as outlined in your policy. Auto insurance provides coverage for: Property – such as damage to or theft of your carLiability – your legal responsibility to others for bodily injury or property damageMedical – the cost of treating injuries, rehabilitation and sometimes lost wages and funeral expenses Basic personal auto insurance is mandated by most U.S. states, and laws vary.
Policies are generally issued for six-month or one-year timeframes and are renewable. Who is covered by my auto insurance—and under what circumstances? Your auto policy will cover you and other family members on your policy, whether driving your car or someone else’s car (with their permission). Is auto insurance coverage mandatory? Motor Vehicle Insurance. Motor vehicle insurance, also called automotive insurance, a contract by which the insurer assumes the risk of any loss the owner or operator of a car may incur through damage to property or persons as the result of an accident. There are many specific forms of motor vehicle insurance, varying not only in the kinds of risk that they cover but also in the legal principles underlying them. Read More on This Topic insurance: Automobile insurance Nearly half of all property-liability insurance written in the United States is in the area of automobile insurance. Set up as a comprehensive… According to the Insurance Information Institute, in the United States in the early 21st century, about two-thirds of the money spent on premiums for private passenger auto insurance went to claims.
In many countries, other approaches to automobile accident insurance have been tried. Get unlimited ad-free access to all Britannica’s trusted content. Read More on This Topic insurance: Automobile insurance. Vehicle Insurance. History[edit] Widespread use of the motor car began after the First World War in urban areas. Cars were relatively fast and dangerous by that stage, yet there was still no compulsory form of car insurance anywhere in the world. This meant that injured victims would seldom get any compensation in an accident, and drivers often faced considerable costs for damage to their car and property. 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.[1] Germany enacted similar legislation in 1939 called the "Act on the Implementation of Compulsory Insurance for Motor Vehicle Owners. "[2] Public policies[edit] In many jurisdictions, it is compulsory to have vehicle insurance before using or keeping a motor vehicle on public roads. Australia[edit] Bangladesh[edit] India[edit] Motor Insurance Explained. You have to have motor insurance before you can drive your vehicle in a public place. It protects you, your vehicle and other motorists against liability in case there is an accident. It provides financial compensation to cover any injuries caused to people or their property. Jump to table of contents Types of insurance cover Third party only This cover is the legal requirement. Most insurance companies offer additional levels of insurance cover that go beyond the legal requirement.
Third party fire and theft This provides the same cover as third party only and also insures you should your vehicle be damaged by fire or stolen. Comprehensive This provides the same cover as third party fire and theft. Providing a courtesy car while your car is being repaired, legal expenses, insurance to recover your uninsured losses (such as your excess)roadside recovery schemesvehicle repairs in case of breakdown If you're involved in an accident If you're involved in an accident with an uninsured motorist. A Beginner's Guide to Car Insurance.