Why You Need To Check The Fine Point With Auto Insurance

Learn why Auto Insurance is crucial to your peace of mind

The moment you purchase your vehicle, what follows next is for you to get auto insurance for it. It may seem like throwing your money considering you are still relatively new to driving.

But, the moment your vehicle is involved in any form of accident, is when you realize that it was no mistake after all.

What is auto insurance and how important is it?

Auto insurance is paying of certain amounts of money ? either monthly or yearly ? to an insurance company to provide protection to your vehicle against unforeseen situations like accidents.

An accident is just what it is ? an accident. No one plans for it, they just happen. When your vehicle is involved in an accident, the insurance company, as per the policy you have with them, will be there to cater for some if not all the costs incurred.

The company is the one that determines the amount you pay as premium. Premium is your yearly or monthly subscription for the policy you have signed up for.

They determine this by taking into consideration some factors e.g.

  • Age
  • Gender
  • Residence
  • The work you do
  • The model of the car
  • Past insurance history

The aim of the insurance is to cushion you against losses financially and will provide cover for the following:

Property: When your car gets spoiled as a result of an accident or it is stolen

Liability: What you are legally responsible for, when an accident occurs, in terms of harm to the body or damaged property.

Medical: The hospital bills incurred for treatment of injuries. In rare cases, wages lost as a result of the accident, as well as funerals.

So who is it that is covered?

  • The family members that you indicated on signing up for the policy. They could be driving your personal vehicle someone else?s.
  • It also covers someone not written in your policy, but was driving your car with your permission.

When you sign up to a personal  insurance cover it means you get compensation in the event of an accident when you are using the vehicle for personal needs and not business.

We have what is known as comprehensive auto insurance cover: basically taking care of claims arising from accidental events. It does not cover:

  • Intentional damage to vehicle
  • Natural vehicle breakdown caused by poor maintenance
  • Things not included in the policy like floods, earthquakes etc

As it is the case with any service provider, before putting pen to paper on any deal, read and understand the finer details. You don?t want to be at loggerheads with the insurance company for making demands on things not stipulated in the contract.