Car

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Know exactly what you are getting insured for in your Car Insurance policy

Do you know these facts about Car Insurance?

The purpose of Car Insurance is to provide financial protection against physical damage and/or bodily injury resulting from traffic collisions and against liability that could also arise there from.

1. A Car Insurance policy can, but doesn’t always, cover the following items:

• The insured party (medical payments)

• The insured vehicle (physical damage)

• Third parties (car and people, property damage and bodily injury)

• Third party, fire and theft.

• The cost to rent a vehicle if yours is damaged.

• The cost to tow your vehicle to a repair facility.

Make sure what you need, is covered in your policy and that no unnecessary extras were sneaked in.

2. Excess payment or deductable, is a fixed contribution that must be paid each time a car is repaired with the charges billed to a car insurance policy. Even when your car is declared a “write off”, the excess agreed on the policy will be deducted from the settlement payment.

Be sure to have the excess amount available!

The Car Insurance premium vary depending on factors that are believed to have an impact on the expected cost of future claims, eg:

• Car characteristics and vehicle classification

• Coverage, excess, limit and covered perils

• Driver profile eg age, gender, driving history and marital status

• Usage of the car, commute to work or not, predicted annual distance

• Credit ratings

Though you can’t control all, you most certainly can control some!

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Beware of Car Insurance Pitfalls!

Possible Car Insurance Pitfalls

Agents will offer reduced limits in order to offer a low price. Don’t fall for it!

Bodily Injury Liability (BI) is what pays for the other driver’s injuries if you are in an at-fault accident. Every driver should carry at least 50/100. It is very easy to run up huge medical expenses. You could be charged with an at-fault accident when it really is not your fault – like hitting someone from behind when they slam on breaks.

The same advice applies to Property Damage Liability (PD) which pays when you hit someone’s vehicle or other property. Consider coverage very carefully to prevent huge out of pocket costs.

A common pitfall is to wait too long to file a claim. Many have no idea what and how much their policy covers, which results in nasty surprises when filing a claim. Understand your policy!

More interesting Car Insurance Information:

Car Insurance: The Best vs the Cheapest

Vehicle Insurance Options

Gap Insurance: Your Financial Safety Net

Road Insurance Tips

 

 

Ref.: sonnyknowsinsurance.com/auto-insurance-pitfalls/

wikipedia.org/wiki/Vehicle_insurance