CAR INSURANCE
APRIL 21, 2021
introduction to car insurance
What is a car insurance ?
According to Insurance Information Institute : Car insurance is a contract between you and the insurance company that protects you from financial loss in the event such as accident or theft. In exchange for your paying an insurance premium, the insurance company agrees to pay the losses as outlined in your policy. The insurance covers financial and personal loss of any damages or loss to the customer’s vehicle that could happen.
Generally a car insurance provides coverage for :
- Property – financial loss of your car
- Liability – your legal responsibility to others
- Medical – the cost of all medical treatments needed.
There are two types of car insurance : car insurance and car insurance All Risk Total Loss Only (TLO). With car insurance your vehicle is only covered for accidents or the vehicle missing. With the All Risk car insurance your vehicle will be protected with all kind or risks including small collision to the vehicle missing.
Car insurance providers offer different insurance plans and packages. However, choosing the right car insurance policy can be challenging for customers. A wrong decision could occur because of the lack of access to the correct knowledge and comprehensive information.
You can use the service from car insurance broker for help. But be careful when using their service, do not accept their offers before you study the benefits of it. That’s because some brokers are capable of steering you to pick unnecessary options. Whether it’s out of self-interest or lack of knowledge, there are a number of reasons why you should not accept a car insurance broker’s advice blindly such as :
- Offering unnecessarily expensive options – Some car insurance brokers get a flat fee, some are paid on commission. It means they have intention to persuade you to buy a higher policy price then you would need.
- Manipulating numbers – To make you to sign up for an auto insurance policy, your car insurance broker may manipulate the information about its rates to their advantage. For example, they don’t mention that the rates quoted are only applicable for the first couple of months of the term, and that they will rise after the established time frame.
- Purely scams – The worst-case possibility, the insurance broker may engage in outright illegal action, such as : The broker may lie about the rates and gain the difference to their pocket. The broker may be secretly working with a black insurance company and steering the customers to take advantages of it. When the customers trying to find them, they vanished without a trace.
Comprehensive insurance policy will pay to repair or change your car if it’s harmed by something besides a crash. Such as burglary, fire, criminal damage, or even hitting a pet.
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