Vehicle insurance (also known as car insurance , motor insurance or car insurance ) is insurance for cars, trucks, motorcycles, and other road vehicles. Its primary use is to provide financial protection against physical damage or bodily injury caused by traffic collisions and to liability that may also arise from incidents in the vehicle. Vehicle insurance may also offer financial protection against vehicle theft, and for damage to vehicles suffered from events other than traffic collisions, such as keys, weather or natural disasters, and damage caused by collisions with immovable objects. The specific terms of vehicle insurance vary with the legal regulations in each region.
Video Vehicle insurance
Histori
The widespread use of cars began after the First World War in urban areas. The car is relatively fast and dangerous at that stage, but there is still no mandatory car insurance anywhere in the world. This means that injured victims rarely get compensation in an accident, and drivers often face substantial expenses for damage to their cars and property.
Car insurance schemes must first be introduced in the United Kingdom with the 1930 Road Traffic Act. This ensures that all vehicle owners and drivers must be insured for liability for injury or death to third parties when their vehicles are used to the public. Street. Germany enacted a similar law in 1939 called the "Law on the Implementation of Mandatory Insurance for Motor Vehicle Owners."
Maps Vehicle insurance
Public policy
In many jurisdictions, it is mandatory to have vehicle insurance before using or maintaining motor vehicles on public roads. Most jurisdictions link insurance with cars and drivers; However, each level varies greatly.
Some jurisdictions have experimented with "pay-as-you-drive" insurance plans that use tracking devices in vehicle or vehicle diagnostics. This will address the issue of uninsured riders by providing additional options and also mile-based (kilometers) driven costs, which could theoretically improve insurance efficiency, through efficient collection.
Australia
In Australia, Third-party (CTP) insurance is a state-based scheme that only covers personal injury liability. Comprehensive and Third Party Property Damage insurance is sold separately.
- Comprehensive Insurance covers damages to third parties and insured property and vehicles.
- Third Party Property Damage covers damage to property and third party vehicles, but not an insured vehicle.
- Third Party Property Damage with Fire and Theft also protects the insured vehicle insurance against fire and theft.
Third-party Mandatory Insurance
CTP insurance is associated with vehicle registration. It was transferred when the vehicle that was registered was sold. This includes the owner of the vehicle and any person who drives against the claim for liability in respect of death or injury to persons caused by the mistake of the owner of the vehicle or the driver, but not for damage. Mandatory Third-Party Insurance is a coverage covering a third party with vehicle repair costs, property damage or medical expenses encountered as a result of an accident by the insured. This may include any form of physical damage, physical injury or property damage and cover the costs of all reasonable medical care for injuries received in accidents, lost wages, maintenance service fees, and in some cases compensation for pain and suffering. In particular, the rider or the insured is liable for his own loss because he is not liable for any damages in that kind of insurance.
In New South Wales and Northern Territory CTP insurance is mandatory; every vehicle must be insured when registered. A 'Greenslip,' another name where CTP insurance is generally known for the color of the form, must be obtained through one of five licensed insurance companies in New South Wales. Suncorp and Allianz both have two licenses to issue CTP Greenslips - Suncorp under the GIO and AAMI and Allianz licenses under the Allianz and CIC/Allianz licenses. The three remaining licenses to issue CTP Greenslips are held by QBE, Zurich and Insurance Australia Limited (NRMA). APIA Insurance and Shannons and InsureMyRide also provide CIO insurance licensed by GIO. In addition to Greenslip, additional car insurance can be purchased through insurance in Australia. This will include claims that can not be provided by standard CTP insurance. This is known as comprehensive car insurance.
Similar schemes apply in the Australian Capital Territory through AAMI, GIO, and NRMA (IAL).
In Victoria, a Third Party Personal insurance from the Transport Accident Commission is also included, through a levy, in the vehicle registration fee. Similar schemes exist in Tasmania through the Motor Accident Insurance Council.
In Queensland, CTP is a mandatory part of registration for vehicles. There is an insurance option but the price is controlled by the government in a tight band.
In South Australia, Third Party Personal Insurance from the Motor Accident Commission is included in the license registration fee for persons over 17. Similar schemes apply in Western Australia, although there is only one CTP insurer, the Western Australian Insurance Commission (ICWA).
Canada
Several Canadian provinces (British Columbia, Saskatchewan, Manitoba and Quebec) provide general car insurance systems while nationwide insurance is provided privately [third party insurance is privatized in Quebec and mandatory. This province covers everything except vehicle (s)]. Compulsory car insurance throughout Canada with each provincial government determines the benefits included as the minimum required car insurance coverage and which benefits are available to those seeking additional protection. Coverage of accident benefits is mandatory everywhere except Newfoundland and Labrador. All provinces in Canada have some form of non-error insurance available to accident victims. The difference from province to province is the extent to which tort or no-fault is emphasized. International drivers entering Canada are permitted to drive any vehicle that permits allow for a 3-month period in which they are permitted to use their international license. International law provides visitors to countries with International Insurance Bonds (IIB) until the 3-month period ends where international drivers must provide themselves with Canadian Insurance. IIB is recovered every time an international driver enters the country. Damage to the driver's own vehicle is optional - one exception to this is in Saskatchewan, where SGI provides collision coverage (less than $ 1,000 deductible, such as the acquittal of collision violation) as part of its basic insurance policy. In Saskatchewan, residents have the option to have their car insurance through the tort system but less than 0.5% of the population has taken this option.
German
Since 1939, it is mandatory to have third party personal insurance before maintaining motor vehicles in all German states. In addition, every vehicle owner is free to take out a comprehensive insurance policy. All types of car insurance are provided by some private insurance companies. The amount of insurance contribution is determined by several criteria, such as territory, type of car or personal way of driving.
The minimum coverage specified by German law for third party car insurance/personal liability insurance is: 7.5 million euros for bodily injury (damage to persons),.5 million euros for property damage and 50,000 euros for indirect financial/lucky losses or indirect coherence with bodily injury or property damage. Insurers usually offer 50 million euros (100 million euros) in insurance for damages, property damage and other financial losses (usually with coverage of body injuries 8 up to 15 million euros for every body injured person).
Hong Kong
According to article 4 (1) of the Motor Vehicle Insurance Act (Cap Rule of Third Party) (Cap. 272 ​​â € <â €
Third party vehicle insurance is required for all vehicles in Hungary. No exceptions are possible with money deposits. This premium covers all damage up to HUF 500M (approximately EUR1.8M) per accident without deductible. Coverage is extended up to HUF 1.250M (approximately EUR4.5M) in case of personal injury. The vehicle insurance policies of all EU countries and some non-EU countries apply in Hungary under bilateral or multilateral agreements. Visitors with vehicle insurance not covered by the agreement are required to purchase a renewable monthly policy at the border.
Indonesia
Third party vehicle insurance is a mandatory requirement in Indonesia and every individual car and motorcycle must be insured or the vehicle will not be considered legal. Therefore, the rider can not drive the vehicle until it is insured. Third Party vehicle insurance includes through retribution in the vehicle registration fee paid to the Samsat government agency ( One Manunggal Administration System under One Roof ), which is responsible for cars and roads. Third Party Vehicle Insurance is regulated under Law no. 34 Year 1964 Re: Road Traffic Accident Fund and only covers bodily injury, and is managed by a SOE named PT. Jasa Raharja (Persero). The Government of Indonesia has a road insurance fund covering life insurance for traffic accidents. Annual fee is called Mandatory Donation Fund for Traffic Accident or Donation of Mandatory Road Traffic Accident Fund .
India
Car insurance in India handles insurance for loss or damage caused by a car or its parts due to natural and man-made disasters. This provides accident cover for individual owners of the vehicle while driving and also for passenger and third-party legal liability . There are some general insurance companies that also offer online insurance services for that vehicle.
Car insurance in India is a mandatory requirement for all new vehicles used for either commercial or personal use. Insurance companies have relationships with leading car manufacturers. They offer their customers instant automatic quotes. Auto premiums are determined by a number of factors and the amount of premiums increases with the increase in vehicle prices. Car insurance claims in India can be an accident, a theft claim, or a third party claim. Certain documents are required to claim car insurance in India, such as a signed claim form, a copy of an RC vehicle, a driver's license, a copy of the FIR, the original estimate and a copy of the policy.
There are different types of car insurance in India:
Personal Car Insurance - Personal Car Insurance is the fastest growing sector in India as it is a liability for all new cars. The premium amount depends on the value and value of the car, the country where the car is registered and the year of manufacture. This amount can be reduced by requesting an insurance company for No Claim Bonus (NCB) if no claims are made for insurance in the prior year.
Two Wheel Insurance - Two Wheel Insurance in India covers accident insurance for vehicle drivers. The premium amount depends on the current showroom price multiplied by the depreciation rate set by the Tariff Advisory Committee at the beginning of the policy period.
Commercial Vehicle Insurance - Commercial Vehicle Insurance in India provides protection for all vehicles not used for personal use such as trucks and HMV. The amount of premium depends on the price of the showroom of the vehicle at the commencement of the insurance period, the manufacture of vehicles and the registration of the vehicle. Car insurance generally includes:
- Loss or damage by accident, fire, lightning, self-ignition, external explosion, robbery, theft or theft, malicious actions
- Liability for third-party injury/death, property and liabilities of third parties to paid drivers
- Upon appropriate additional premium payment, loss/damage to electrical/electronic accessories
Auto insurance does not include:
- Consequences of loss, depreciation, mechanical and electrical damage, failure or damage
- When the vehicle is used outside the geographic area
- War or nuclear danger and drunk driving
Ireland
The Road Traffic Act, 1933 requires all drivers of mechanical-engine vehicles in public places to have at least third-party insurance, or have obtained an exception - generally by depositing large sums to the Court of Appeal as collateral against claims. In 1933, this figure was set at Ã, Â £ 15,000. The Road Traffic Act, 1961 (currently in force) repealed the 1933 action but replaced this section with a functionally identical section.
From 1968, those who made the deposit requested the Minister of Transport's approval to do so, with the amount prescribed by the Minister.
Those who are not exempt from insurance should obtain an insurance certificate from their insurance provider, and display some of these (insurers disks) on their windshield (if installed). The full certificate must be presented to the police station within ten days if requested by the clerk. Evidence of having insurance or exemption should also be provided to pay motor vehicle taxes.
Those injured or damaged property/loss due to an uninsured driver may file a claim against the Motor Insurance Bureau of an uninsured driver fund of Ireland, as well as those injured (but not those suffering damage or loss) from a hit-and-run breach.
Italy
Law 990/1969 requires every motor vehicle or trailer standing or moving on public roads to have third party insurance (called RCA, ResponsabilitÃÆ' civile per gli autoveicoli ). Historically, part of the insurance certificate should be displayed on the windshield of the vehicle. This last requirement was revoked in 2015, when the national database of insured vehicles was built by the Insurance Companies Association (ANIA, Associazione Nazionale Imprese Assicuratrici ) and the National Transport Authority (Motorizzazione Civile i)) to verify (by civilians and public authorities) if the vehicle is insured. There is no exception policy for disposition of this law.
Driving without the necessary insurance for the vehicle is a violation that can be prosecuted by police and fines ranging from 841 to 3,287 euros. Police also have the power to seize vehicles that do not have the necessary insurance, until the vehicle owner pays a fine and signs a new insurance policy. The same rules apply when a vehicle stands on a public road.
The minimum insurance policy covers only third parties (including insured persons and third parties carrying vehicles, but not drivers, if they are not appropriate). Also third parties, fire and theft are general insurance policies, while all inclusive policies (kasko policy) include damage to vehicles that cause accidents or injuries. It is also common to include a rejection clause from an insurance company to compensate damages against an insured person in some cases (usually in DUI cases or other law violations by the driver).
Accident casualties caused by uninsured vehicles can be compensated by the Road Guarantee Fund (Fondo garanzia vittime della strada ), covered by a fixed amount (2.5%, like 2015) of each RCA insurance premium.
New Zealand
In New Zealand, the Accident Compensation Corporation (ACC) provides nationally unilateral personal injury insurance. Injuries involving motor vehicles operating on public roads are covered by Motor Vehicle Accounts, where premiums are collected through levies on petrol and through vehicle license fees.
Norwegian
In Norway, vehicle owners must provide minimum liability insurance for their vehicles - in any form. Otherwise, the vehicle is illegal to use. If someone drives someone else's vehicle, and has an accident, insurance will cover the damage. Note that policy operators may choose to limit coverage to apply only to family members or people over a certain age.
Romanian
Romanian law mandates R? Spundere Auto Civil ?, motor vehicle liability insurance for all vehicle owners to cover damage to third parties.
Russian Federation
Motor vehicle insurance is compulsory for all owners in accordance with Russian law.
South Africa
South Africa allocates a percentage of money from fuel into the Road Accident Fund, which is intended to compensate third parties in accidents.
Spanish
Every motor vehicle on public roads has third party insurance (called "Seguro de responsabilidad civil").
The police force has the power to seize vehicles that do not have the necessary insurance, until the vehicle owner pays a fine and signs a new insurance policy. Driving without the necessary insurance for the vehicle is a violation that will be demanded by the police and will be punished. The same rules apply when a vehicle stands on a public road.
The minimum insurance policy covers only third parties (including insured persons and third parties carrying vehicles, but not drivers, if they are not appropriate). Also third parties, fire and theft are general insurance policies.
Accident casualties caused by uninsured vehicles can be compensated by the Guarantee Fund, which is borne by a fixed amount of each insurance premium.
Since 2013 it is possible to contract insurance with such a day as is possible in countries such as Germany and the UK.
United Arab Emirates
When buying auto insurance in United Arab Emirates, the traffic department requires 13-month insurance certificates each time you register or renew vehicle registration.
United Kingdom
In 1930, the British government introduced a law requiring everyone who uses the vehicle on the road to have at least third-party personal accident insurance. Currently, this English law is defined by the Road Traffic Act of 1988, (generally referred to as RTA 1988 as amended) which was last modified in 1991. The law requires that motorists be either insured, or have made certain deposits (Ã, Â £). 500,000 in 1991) and deposits the amount deposited with the General Accountant of the Supreme Court, against the obligation to injure another person (including passengers) and for damage to the property of another person, resulting from the use of vehicles on public roads or in other public places.
It is a violation to use a motor vehicle, or to allow others to use it without insurance that meets the requirements of the Act. This requirement applies when every part of the vehicle (even if mostly located on private land) is on a public highway. There are no laws applicable on private land. However, private land that has reasonable access to the community (eg, supermarket parking lot during opening hours) is considered to be included in the requirements of the Act.
Police have the power to seize a vehicle that does not seem to have the necessary insurance. A driver who is caught driving without insurance for the vehicle he is responsible for driving purposes, may be prosecuted by the police and, after being convicted, will receive a permanent penalty or judge's judgment.
The vehicle registration number shown on the insurance policy, together with other pertinent information including the effective date of coverage, is sent electronically to the existing UK Motor Insurance Database (MID) to help reduce uninsured driving incidents in the area. Police can check passing vehicles within the range of automatic license plate recognition (ANPR) cameras, which can search for MID instantly. It should be noted, however, that the proof of insurance fully rests on the issue of a Motor Vehicle Insurance Certificate, or a closing note, by a Legal Insurer, to be applicable, must have been previously 'submitted' to the insured person in accordance with the Act, and printed in ink black on white paper.
Insurance certificates or insurance records issued by insurance companies are the only legal evidence that the certificate-related policies meet the requirements of applicable laws applicable in Great Britain, Northern Ireland, Isle of Man, Guernsey Island, Jersey Island and Alderney Island. The law states that an authorized person, such as a police officer, may require a driver to make an insurance certificate for inspection. If the driver can not show documents immediately upon request, and the insurance proof can not be found by other means such as MID, then Police are empowered to seize the vehicle instantly.
The immediate seizure of an apparently uninsured vehicle replaces the previous method of handling the inspection of the premises where the driver is issued with HORT/1 (so called because the order is the number 1 issued by the dept. Traffic Office of the Road House). This 'Ticket' is an order that requires that within seven days, starting midnight from the date of issue, the driver in question will take a valid insurance certificate (and usually other driving documents as well) to the driver's preferred police station. Failure to produce an insurance certificate is, and still is, an offense. The HORT/1 is generally known - even by the issuing authority when dealing with the public - as a "Producer". Since these are rarely issued now and MID is relied upon to indicate the presence of insurance or not, it is an obligation on the insurance industry to accurately and quickly update the MID with the details of current policies and insurers that fail to do so can be penalized by those regulating the body.
Vehicles kept in the UK today must continue to be insured unless the Official Road Notice (SORN) has been formally submitted. This requirement came after the change in law in June 2011 when a regulation known as Continuous Insurance Enforcement (CIE) came into effect. The impact of this is that in UK vehicles that are not otherwise SORN, must have an applicable insurance policy whether or not it is stored on a public road and whether or not it is encouraged.
Insurers, and Vehicle Import Duties (VED)/license data, shared by relevant authorities including the Police and this is an integral part of the CIE mechanism. All UK registered vehicles, including those exempt from VEDs (eg, Historical Vehicles and low or zero emission cars) are subject to the VED taxation application process. Part of this is a vehicle insurance check. Physical receipts for VED payments are issued in a paper disc which, before October 1, 2014, means that all motorists in the UK are required to display clear tax discs in their vehicles when they are stored or driven in public. Street. This helps to ensure that most people have adequate insurance on their vehicles because insurance is required to purchase the disk, even though the insurance is only valid at the time of purchase and is not a must for the life of the tax disc. To solve the problems arising where the vehicle insurance is subsequently canceled but the tax discs remain in effect and displayed on vehicles and vehicles then used without insurance, CIE regulations can now be applied as Driver & amp; Vehicle License Authority (DVLA) and MID databases are shared in real-time meaning that taxed but uninsured vehicles are easily detected by the authorities and the Traffic Police. Post 1 October 2014 is no longer a requirement to display motor vehicle excise taxes (tax discs) on vehicles. This happens because the entire VED process can now be set electronically and in addition to MID, doing away with the cost, to the UK Government, issuing paper discs.
Should the vehicle be "laid" for any reason, the Exit Line Notice (SORN) must be submitted to the DVLA to certify that the vehicle is off the public road and will not return to them unless SORN is canceled by the vehicle owner. Once the vehicle has been declared 'SORN', then the legal requirement to ensure it stops, although many vehicle owners may want to retain protection for vehicle loss or damage when the vehicle is off the road. A vehicle which is then put back on the road should be subject to new applications for VED and insured. Part of the VED application requires an electronic MID check, in this way the legitimate presence of vehicles on the road for both VED and insurance purposes is strengthened. Therefore the only circumstance in which a vehicle can not have insurance is if it has a valid SORN; exempted from SORN (not imposed on or before 31/10/1998 and has no tax activity or SORN since); recorded as 'stolen and not found' by the Police; are among the registered guards; or deleted.
Road Insurance Only Insurance is different from Third-Party Insurance (detailed below) and is not often sold, except for support, for example, corporate bodies that wish to insure themselves at upon the requirements of the Act. This provides a very minimum cover to meet the requirements of the Act. Insurance Road Traffic Insurance Only has a limit of Ã, Â £ 1,000,000 for damage to third-party properties, while third-party insurers usually have a larger limit for third-party property damage.
Motor insurance companies in the UK place limits on the amounts they are accountable in the event of any claim by third parties against legitimate policies. This can be partially explained by the Great Heck Rail Crash that weighs more than £ 22 million in insurance companies as compensation for casualties and property damage caused by the actions of insured drivers of motor vehicles that cause disasters. No restrictions apply to claims from third parties for death or personal injury, but UK car insurance is now generally limited to Ã, Â £ 20 million for claims or series of claims for loss or damage to third party properties caused by or arising from one incident.
The minimum level of insurance available generally, and which meets the requirements of the Law, is called only third party insurance . The level of protection provided by Third-party insurance is the basis, but exceeds the requirements of the action. This insurance assumes any obligation to third parties, but does not cover any other risks.
The more commonly purchased are third parties, fires, and theft . This includes all third party liabilities and also includes the owner of the vehicle against the destruction of a vehicle by fire (whether dangerous or by vehicle fault) and the theft of an insured vehicle. It may or may not include vandalism. This type of insurance and the two prior types do not cover damage to the vehicle caused by the driver or other hazards.
Comprehensive insurance covers all of the above and damage to the vehicle caused by the driver itself, as well as vandalism and other risks. This is usually the most expensive type of insurance. Interestingly, it is customary in the UK for insurance customers to refer to their Comprehensive Insurance as "Completely Comprehensive" or popular, "Completely Comp". This is a tautology because the word 'Comprehensive' means full.
Some classes of vehicle ownership, or use, are "Crown Exempt" of the requirements to be covered by the Act including vehicles owned or operated by certain councils and local authorities, national park authorities, educational authorities, police authorities, fire authorities, health agencies, security services and vehicles used for or from the purpose of Rescue Delivery. Although exempt from the requirement to ensure this does not impart immunity to claims made against them, so other Crown exclusion authorities may elect to insure conventionality, preferring to bear the cost of known insurance premiums rather than receiving open exposure effectively, insuring themselves in under Crown Exceptions.
The Motor Insurers' Bureau (MIB) compensates victims of road accidents caused by uninsured and unattended drivers. It also operates a MID, which contains details of each vehicle insured in the country and acts as a means to share information between Insurance Companies.
Immediately after the introduction of the Road Traffic Act in 1930, an unexpected problem arose when motorists needed to drive vehicles other than their own in a real emergency. Volunteering to move a vehicle, for example, when another rider has fallen ill or been involved in an accident, may cause the driver 'escort' to be charged because there is no insurance if other car insurance is not used by the driver. To resolve this situation, an extension of UK Car Insurance was introduced which allowed the Policy Holder to personally drive another motor vehicle that was not hers and not hired for him under a purchase or lease agreement. This extension of coverage, otherwise known as "Driving Other Car" (if given) usually applies only to Policy Holder. The cover provided is for Third Party Risk only and there is absolutely no cover for loss or damage to the vehicle being driven. This aspect of UK motor vehicle insurance is the only one that is meant to cover the driving of the vehicle, not the use.
On March 1, 2011, the European Court in Luxembourg ruled that gender can no longer be used by insurance companies to set auto insurance premiums. The new decision will come into effect from December 2012.
Investigation of repair & amp; fraudulent claims
In September 2012, it was announced that the Competition Commission had launched an investigation into the British system for credit repair and leasing of credit from alternative vehicles leading to claims from third parties after the accident. If their client is deemed innocent, the Accident Management Company will take over their client's claims and arrange everything for them, usually on a 'No Winning - None' basis. This indicates that the insurer of the vehicle is faulty, can not intervene to have control over the fees applied to the claim by means of repair, storage, vehicle rental, referral fees and personal injury. The subsequent costs of some of the items submitted for consideration have been the cause of concerns over the past few years as this has led to an increase in premium costs, contrary to the general duty of all involved to reduce the cost of claims. Also, the recent madness of "Cash for Accidents" has substantially increased the cost of the policy. This is where two parties manage the collision between their vehicle and one driver making excessive claims for damage and no injury to themselves and the passengers they arrange to be "in the vehicle" at the time of the collision. Another recent development has seen accidental crashes caused by drivers "slamming" on their brakes so drivers behind attack them, this is usually done at a roundabout junction, when the following driver is looking to the right for incoming traffic and does not notice that the vehicle in front suddenly stopped for no reason. The 'suspension' of a motorcycle collision on Public Highway for the purpose of attempting insurance fraud is considered by the Court to be an organized crime and for such a handled belief.
United States
The regulations for vehicle insurance differ from 50 US states and other territories, with each US state having its own mandatory minimum coverage requirement ( see separate main article ). Each of the 50 US states and the District of Columbia requires the driver to have insurance coverage for both bodily injury and property damage, but the minimum amount of coverage required by law varies by state. For example, the minimum body injury coverage requirement ranges from $ 30,000 in Arizona to $ 100,000 in Alaska and Maine, while the minimum property damage liability requirements range from $ 5,000 to $ 25,000 in most states.
Rate of coverage
Vehicle insurance may include some or all of the following items:
- The insured party (medical payment)
- Property damage caused by the insured
- An insured vehicle (physical damage)
- Third parties (cars and people, property damage and body injuries)
- Third parties, fires, and thefts
- In some coverage the jurisdiction for injury to a person driving an insured vehicle is available without regard to errors in a car accident (No Auto Damage Insurance)
- The cost to rent a vehicle if your property is damaged.
- The cost to withdraw your vehicle to a repair facility.
- Accidents involving uninsured motorists.
Different policies determine the circumstances in which each item is covered. For example, a vehicle may be insured against theft, accidental fire damage, or accidental damage.
If the vehicle is declared a total loss and the market value of the vehicle is less than the amount still owed to the bank that finances the vehicle, GAP insurance may cover the difference. Not all auto insurance policies include GAP insurance. GAP insurance is often offered by finance companies when the vehicle is purchased.
Excess
Overdelivery, also known as deductibles, is a fixed contribution to be paid every time a car is repaired at a cost billed to an auto insurance policy. Usually these payments are made directly to the repair of "garage" accidents (the term "garage" refers to the place where the vehicle is serviced and repaired) when the owner collects the car. If a person's car is declared "write off" (or "totaled"), then the insurance company will reduce the agreed excess on the policy of settlement payments made to the owner.
If the accident is another driver's fault, and this error is accepted by a third party company, then the vehicle owner may be able to recover the overpayment from another person's insurance company.
The advantages themselves can also be protected by excess motor insurance policies.
Mandatory Excellence
A mandatory surplus is the minimum minimum payment that will be accepted by the insurance company on the insurance policy. The minimum excess varies according to personal details, driving records and insurance companies. For example, drivers and other types of young or inexperienced incidents may incur additional mandatory additional fees.
Voluntary excess
To reduce insurance premiums, the insured party may offer to pay the excess higher (deductible) than the required surplus required by the insurance company. Voluntary excess is an additional amount, exceeding and above the mandatory surplus, which is agreed to be paid in the event of a claim to the policy. Because the great advantages reduce the financial risks brought by the insurer, insurance companies can offer a much lower premium.
Depending on its jurisdiction, insurance premiums may be mandated by the government or determined by an insurance company, in accordance with the regulatory framework established by the government. Often, insurance companies will have more freedom to set prices on the coverage of physical damage than on the protection of obligatory obligations.
When a premium is not mandated by the government, it usually comes from the calculation of an actuary, based on statistical data. Premiums may vary depending on many factors that are believed to affect the expected costs of future claims. These factors may include car characteristics, selected coverage (deductible, limit, hazard cover), driver profile (age, gender, driving history) and car use (round-trip or not, predicted annual spacing driven).
About
Owner address can affect premium. Areas with high crime rates generally lead to higher insurance costs.
Gender
Because male drivers, especially younger ones, on average are often considered to be more aggressive, the premiums imposed for policy on vehicles whose main drivers are males are often higher. This discrimination may be imposed if the driver passes a certain age.
On March 1, 2011, the European Court ruled an insurance company using gender as a risk factor when calculating insurance premiums had violated EU equality legislation. The court ruled that car insurance companies discriminate against men. However, in some places, such as the UK, companies have used standard discrimination practices based on the profession to keep using gender as a factor, albeit indirectly. Professions that are more often practiced by men are considered more risky even if they have not been before the Court's decision while the opposite is applied to the dominant profession among women. Another effect of the decision is that, while the premium for men has been lowered, they have been raised for women. This equity effect has also been seen in other types of insurance for individuals, such as life insurance.
Age
The teenage drivers who do not have a driving record will have a higher car insurance premium. However, younger drivers often offer a discount if they conduct further driver training on a recognized course, such as the Pass Plus scheme in the UK. In the US many insurance companies offer quality discounts for students with good academic records and student-student discounts for those living away from home. Generally insurance premiums tend to be lower at the age of 25 years. Some insurance companies offer special "stand-alone" car insurance policies for teenagers with lower premiums. By placing restrictions on teen driving (prohibiting driving after dark, or giving a lift to other teenagers, for example), these companies effectively reduce their risk.
Senior drivers often qualify for retirement discounts, reflecting the lower average miles driven by this age group. However, rates may increase for senior drivers after the age of 65, due to an increased risk associated with much older drivers. Typically, an increased risk for drivers over the age of 65 is associated with slower reflexes, reaction times, and becomes more susceptible to injury.
AS. driving history
In most U.S. states, transfers violations, including running a red light and speeding, assessing points on the driver's driving record. As more points indicate an increased risk of future violations, the insurance company periodically reviews the driver's records, and can raise the premiums accordingly. Assessment practices, such as debits for poor driving history, are not prescribed by law. Many insurance companies allow one violation to move every three to five years before raising the premium. Accidents also affect insurance premiums. Depending on the severity of the accident and the number of points assessed, the rate may increase by twenty to thirty percent. Any automotive belief should be disclosed to the insurer, as the driver is assessed with the risk of previous experience while driving on the road.
Marital status
Statistics show that married drivers on average experience fewer accidents than other residents so married policy owners often receive lower premiums than single people.
Profession
The driver's profession can be used as a factor to determine premiums. Certain professions may be considered more likely to result in damage if they regularly involve more travel or carry expensive equipment or stocks or if they are dominant either among women or among men.
Vehicle classification
The two most important factors that determine the underwriting risk of motor vehicles are: performance capability and retail costs. The most common car insurance providers available have limitations on vehicle guarantees designed to be able to achieve higher speed and performance levels, or vehicles that retail above a certain dollar amount. Vehicles that are usually considered luxury cars usually carry a more expensive physical damage premium because they are more expensive to replace. Vehicles that can be classified as high-performance cars will bring a higher premium in general as there is greater opportunity for risky driving behavior. Motorcycle insurance can bring lower property damage premiums because the risk of damage to other vehicles is minimal, but has a higher liability or premium personal injury, as motorcyclists face different physical risks while on the road. The risk classification on cars also takes into account statistical analysis of theft, accidents, and mechanical damage reported in each year, manufacture, and model of the car provided.
Distance
Some car insurance plans do not differentiate in terms of how many cars are used. However there are low mileage discounts offered by some insurance providers. Other differentiation methods will include: the distance between ordinary subjects and their usual daily aims.
Estimated reasonable distance
Another important factor in determining auto insurance premiums involves the annual mileage imposed on the vehicle, and for what reason. Driving to and from work every day at a certain distance, especially in urban areas where public traffic routes are known, presents a different risk from how pensioners who do not work longer can use their vehicles. A common practice is that this information is provided solely by the insured person, but some insurance providers have begun accumulating regular odometer readings to verify the risks.
odometer-based system
Cents Per Mile Now (1986) recommends the grouping of a mile-odometer tariff, a type of usage-based insurance. Once the company's risk factor has been applied, and the customer has received the per-mile rate offered, the customer purchases miles of prepaid insurance coverage as needed, such as buying a gasoline gallon (liter of gasoline). Insurance automatically ends when the odometer limit (recorded on the car insurance ID card) is reached, unless more distance is purchased. Customers track miles on their own odometer to know when to buy more. The company does not charge customers, and customers do not have to estimate the "annual mileage" for the company to get a discount. In the event of a traffic stop, the officer can easily verify that the current insurance, by comparing the figures on the insurance card with that on the odometer.
Critics point to the possibility of system fraud by odometer interference. Although newer electronic odometers are difficult to roll back, they can still be defeated by releasing odometer cables and reconnecting them later. However, as the Cents Per Mile Now website shows:
As a practical matter, rearranging odometers requires equipment plus expertise that makes risky and uneconomical insurance theft. For example, to steal 20,000 miles [32,200 km] of continuous protection while paying only 2000 in the range of 35000 to 37000 on the odometer, the reset must be done at least nine times, to keep the odometer reading within a narrow 2,000 miles [3,200 km] covered coverage. There is also a powerful legal deterrent for how to steal insurance protection. Odometers always serve as a gauge for resale value, lease and lease fees, warranty limits, mechanical damage insurance, and tax cuts per cent per mile or reimbursement of fees for business or government travel. Odometer interference, detected during claims processing, canceling insurance and, under state and federal laws that are decades old, may be subject to severe fines and imprisonment.
Under a system of pennies per mile, rewards for less driving are delivered automatically, without the need for complicated and expensive administrative GPS technology. Measuring uniform exposure per mile for the first time provides the basis for statistically valid tariff classes. The insurance premium income automatically keeps pace with the increase or decrease in driving activity, reducing the demand for insurance generated for tariff increases and preventing today's windfall to insurance companies, when decreased driving activity lowers costs but not premiums.
GPS-based systems
In 1998, the Progressive Insurance Company started a pilot program in Texas, where drivers received a discount for installing GPS-based devices that tracked their driving behavior and reported the results via cell phone to the company. The program was discontinued in 2000. In subsequent years many policies (including Progressive) have been piloted and successfully introduced worldwide into what is known as Telematic Insurance. Such 'telematic' policies are usually based on black box insurance technology, they are from stolen vehicles and fleet tracking but are used for insurance purposes. Since 2010, GPS systems and Telematic Insurance have become more important in the automotive insurance market not only aimed at the market of specialized car fleets or high-value vehicles (with an emphasis on recovery of stolen vehicles). Modern GPS-based system labeled as 'PAYD' Pay As You Driving insurance policy, 'PHYD' Pay How You Drive or since 2012 Smartphone car insurance policies that utilize smartphones as GPS sensors, eg.. A detailed survey of the smartphone as a measurement probe for telematics insurance is provided at
OBDII-based system
The Progressive Company launched Snapshot to give the driver a special insurance rate based on the recording of how, how much, and when their car was driven. Snapshots are currently available in 46 states plus the District of Columbia. Since insurance is set at the state level, Snapshot is not currently available in Alaska, California, Hawaii, and North Carolina. Driving data is transmitted to the company using an on-board telematic device. The device is connected to the OnBoard Diagnostic (OBD-II) port of the car (all US gasoline cars built after 1996 have OBD-II.) And transmit speed, time, and number of miles of driven cars. Cars that are rarely driven, in less risky ways, and at less risky times, can receive substantial discounts. Progressive has received a patent on the method and system of application of insurance-based use and has licensed these methods and systems to other companies.
Metromile also uses OBDII-based systems for their mileage-based insurance. They offer the correct pay-per-mile insurance in which the behavior or driving style is not taken into account, and the user only pays the base rate along with the fixed rate per mile. The OBD-II device measures mileage and then sends mileage data to the server. This should be an affordable car insurance policy for low mileage drivers. Metromile currently only offers personal car insurance policies and is available in California, Oregon, Washington, and Illinois.
Credit rating
Insurance companies have started using credit ratings from their policyholders to determine risk. Motorists with good credit scores earn lower insurance premiums, because it is believed that they are more financially stable, more responsible and have the financial means to keep their vehicles better. Those with a lower credit score may raise premiums or canceled insurance. It has been proven that good drivers with poor credit records may incur higher premiums than bad drivers with good credit records.
Insurance based on behavior
The use of non-intrusive load monitoring to detect drunk driving and other risky behaviors has been proposed. The US patent application that combines this technology with a usage-based insurance product to create a new type of car insurance product based on current behavior is open to public comment about patent partners. View Behavior Based Security . Insurance based on behavior focused on driving often called Telematics or Telematics2.0 in some cases monitoring focus on behavior analysis such as fine driving.
Repair insurance
Auto repair insurance is an extension of car insurance available in all 50 states in the United States that includes natural wear and damage to the vehicle, regardless of the damage associated with a car accident.
Some drivers choose to buy insurance as a means of protection against damage that is unrelated to an accident. In contrast to standard and basic coverage such as comprehensive insurance and collision, car repair insurance does not cover vehicles when damaged in a collision, during a natural disaster or in the hands of vandals.
For many, this is an attractive option for protection once the warranty on their car ends.
The provider may also offer a sub-division of car repair insurance. There is standard repair insurance covering vehicle use and damage, and natural damage occurs. Some companies will only offer mechanical damage insurance, which only covers the necessary repairs when damaged parts need to be repaired or replaced. These parts include transmission, oil pumps, pistons, time gears, flywheels, valves, axles and joints.
In some countries, insurance companies offer direct repair programs (DRPs) so that their customers have easy access to the recommended auto repair shop. Some also offer one-stop shopping where damaged cars can be lowered and adjuster handles claims, cars are repaired and often replacement rental cars are provided. When repairing a vehicle, a car repair shop is required to follow instructions related to original equipment manufacturer (OEM) choice, original equipment supplier parts (OES), suitable parts spare parts (MQ) and general replacement parts. Both DRP and non OEM parts help lower costs and keep insurance rates competitive. AIRC (International Car Body Repair Association) Secretary General Karel Bukholczer explains that DRP has a major impact on car body repair shops.
See also
References
External links
- How Car Insurance Works in HowStuffWorks
Source of the article : Wikipedia
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