Everything You Wanted To Know About Car Insurance

1.9K

In the times we are living in almost all of us have a vehicle, and the importance of it is quite clear. There is nothing more effective to take you from point A to point B than a car. And with the ongoing revolution who knows we might be able to see and experience the battery electric vehicles everywhere around in the near future. That saying, gasoline vehicles do have quite a chance of being replaced, and it is for the benefit of Ozone and the environment in general.

Anyways, if you have a car, you might know that insurance is pretty important. Still, there are numerous options when it comes to ensuring your car, and not all are the same price. For someone not that experienced and educated on the matter it might be pretty confusing. That is why we decided to make a little guide on car insurance and give you a few tips on how to make the right choice!

What Is A Car Insurance ?

So, similar to a life insurance the concept of a car one is pretty clear – it works on, use it or lose it policy’’. You pay a certain amount of premium a year and that way you ensure that you will get a re

fund in case your car is somehow damaged, or you experience an accident. If you are lucky enough and do not actually go through anything of this you will be losing the money you paid, but there that’s how it works, and it isn’t so bad after all. You get a 20% bonus if you don’t use the insurance, and on the sixth year, it turns into a 50% bonus, so it is quite worth staying away from possible trouble.

Now, you might ask what is the maximum amount of money you can get, and it is determined by the Insured Declared Value. It basically stands for the market value of your vehicle, and it is going to be less as the year’s pass (for the same vehicle, due to amortization). And what you need to know is that when renewing your car insurance you should do it in the given 90-day time frame in order to skip on possible penalties.

What Should Your Car Insurance Cover ?

So, there are a few things you would want your car insurance covers. First of all, it is loss or damage due to natural calamities – this includes anything that isn’t caused by your or a third-party. On the other hand, loss or damage due to man made calamities is one of the staples, and it usually includes strikes, burglaries, etc. And then again you have a third party liability and personal accident.

img source: businessinsider.com

This covers the damage in possible accidents caused by you or someone else driving the car and frees you from legal consequences of accidental third-party damages.

While this is what your car insurance should provide there are things you shouldn’t expect. First of all, no insurance will cover the damage that you did while driving on alcohol or drugs, and no insurance will cover damage caused by an uninsured person. On top of all that in case of war or nuclear damage the insurance agency isn’t responsible to cover you.

Summary

It is pretty clear that getting car insurance is a must, and although you have to pay a yearly premium, it is of huge benefit in both of the scenarios. If you suffer damage, you will get costs covered, and on the other hand, if you stay out of accidents, you will be paying fewer premiums as you get certain no-loss bonuses. It is a win-win situation either way!