There are approximately 20 various types of insurance policies available and auto, home, life and health top the charts.
The concept of insurance has been recorded to be first practiced as far back as 2nd and 3rd millennium B.C. Just about anything you think about or hold value too these days can be insured. Auto or vehicle insurance is one of the most common types of insurance and is a basic policy to protect you against losses incurred from car accidents, theft, vandalism and various other mishaps. Auto insurance can be purchased for different vehicles like cars and trucks as well as recreational items like motorbikes, boats and motor homes. In recent years the internet has been instrumental in helping people to know the various policies available to meet their needs and compare prices.
What’s auto insurance for anyway?
Auto insurance is basically a contract between you the customer or car owner and an insurance company. According to this contract you the customer agree to pay a certain amount of money or premium to the insurance company and the company agrees to payout any losses as defined in the policy.
The main items covered in auto insurance policies are:
1. Property: in case of damage or theft of a car the reimbursement is paid under the property coverage.
2. Liability: covers expenses incurred for bodily injury or property damage to the other person and or yourself.
3. Medical expense: medical coverage helps pay for treating injuries, rehabilitation and funeral expenses.
Most insurance policies are valid for six months to one year and need to be renewed before the policy expires to avoid gaps of coverage where you would be liable if something were to happen. Insurance companies will usually notify you by mail when it is time to renew your policy. Insurance companies charge a flat rate premium regardless of how much the vehicle is used. Some insurance companies also offer various types of discounts.
The Benefits of Auto Insurance:
In order to protect your assets and financial situation it is very important to purchase auto insurance, this is the main purpose of auto insurance. Auto insurance is not only important for the protection of your vehicle but also in most countries it is required mandatory by law.
It is very important to conduct a detailed study when buying auto insurance coverage because there are different types of policies with different benefits. Consult an expert before investing in any insurance to ensure you get the right type and best rates possible.