[ad_1]
Based on the high rate of accidents which happen each year, it is imperative that anyone driving a car whether it is your car or a friend’s car must have an auto insurance policy even if it is the least of all insurance policies available.
An insurance covers the policyholder and in most cases it covers other people who use the car or the driver. However if the car gets into an accident which is not in the interest of the policyholder, or in violation with the agreement between the policyholder and the insurance company, the insurance policy will not cover the damages from such accident.
In instances where the insured vehicle gets sold to another person, the new owner is covered by the third party liability Insurance and also by the comprehensive car insurance policy (if there is any) within a period of 3 weeks after the change of ownership. When there is a new active insurance policy, all deductibles under the insurance will be paid by the new car owner.
Auto insurance does not cover damage to vehicles in company possession for purpose of sale
Depending on the car insurance policy agreement between you and your insurance company, there might not be a need for you to notify them when the terms in the policy agreement changed. The consequence of refusal to notify the insurance might be forfeiture indemnity and compensation if an accident occurs or reduction of the indemnity and compensation or lapses in the payment if indemnity and compensation.
Therefore to avoid the consequences stated above, whenever there is a change in the policy information notify your insurance company immediately.
You can purchase the same auto insurance from two different insurance companies without terminating the initial insurance with the first company but when an accident occurs, the agreement in your car insurance policy will applied, and this may mean that both companies pay half is the cost for the accident each.
Another important thing to note regarding auto insurance is the deductibles which are based on the agreement in the auto insurance policy. Deductibles are deducted only once in cases of an insurance event involving both third party liability and damages under the comprehensive auto insurance.
No deductible will apply in situations such as:
1. Damages from a known liable tortfeasor
2. Damages from fire, explosion, lightening or theft
3. Damages from items falling on the car.
Furthermore, there will be additional deductible if there is driving damage to the car by another person other than the policyholder, or any registered user of the three car under the auto insurance policy.
There are certain accidents which your auto insurance policy may not cover. Under the liability insurance, your auto inside policy does not cover;
1. Injury to the driver
2. Damage from the carriage of goods by road under the acts of contract
3. Damage to attached vehicle
4. Damage which occurred at the time the vehicle was rented out unless it can be proved that the damage is as a result of occurrence which is in accordance with the auto insurance policy
5. Damage to items belonging to the driver, policyholder, anyone stated in the auto insurance policy it a regular user.
The following accidents are not covered by the comprehensive auto insurance:
1. Damage resulting from weather conditions
2. Damage car parts during repairs unless it can be proved the damage had occurred during the driving or by fire
3. Damage in the electrician and mechanical parts the vehicle, unless it can be proved the damage occurred in accordance with the auto insurance policy
4. Damage resulting from reckless driving i.e. Overheating or no change of oil
5. Damage which occurred while the car was rented out
6. Damage which occurred from intoxication of the driver
7. Damage caused intentionally by grid negligence
8. Loss of the car due to seizure of the car by law enforcement authority
9. Damage under warranty and guarantee
10. Damage from usage of the car such as wear and tear, scratches on the car body and so on.
Duration of the auto insurance policy is based on the agreement between you and the insurance company. Most auto insurance agreement are annual and are renewed yearly unless it’s canceled in writing by the policyholder or the insurance company with a month’s notice.
[ad_2]
Source: http://ezinearticles.com/?Terms-and-Conditions-of-Auto-Insurance&id=9555724
