Insurance

Understand the Characteristics of a Car insurance

Car insurance is for emergency purposes. It provides for the compensation in case one gets involved in an accident or any other mishappening takes place with him. There are two parties insured and the insurer in an insurance arrangement. The insured is the one who buys the insurance from the company and pays the premium for it as well. The insurer is the insurance company that enters into a legal contract with the insured and it is bounding upon the company to pay compensation to the insured as per the terms and conditions mentioned in the insurance agreement. So, car insurance has a lot of features such as:

  • Types of policies

There are a lot of car insurance policies such as Liability Insurance, Collision Coverage Insurance, Comprehensive Insurance, Personal Injury Protection Insurance and Uninsured/ Underinsured Motorist Protection Insurance. The person who is willing to buy insurance can buy any insurance out of all these as per their convenience and choices. There are different kinds of insurance available according to different countries and their rules and laws. One has to go according to the laws and availability.

  • Risks covered

There are two types of risks prone to cars. One kind of risk is the natural disasters such as earthquake, flood, storm, tsunami or any other occurrence that is considered as an act of God. Another kind of risk is man-made disasters such as collision, theft, vandalism, robbery, accident, fire, riots or any other act that is done due to an act of man. The risks covered depend upon the type of insurance bought. Every kind of insurance covers a different kind of risk. The person should choose such insurance that covers most of the risks.

  • Value of insurance cover

The amount of cover means the amount of insurance policy the insured holds. The cover amount should be chosen carefully. If the cover amount is less than required then at the time of accident or mishappening, the compensation will not be enough. If the cover amount is more than the required then the insured has to unnecessarily pay premium more than what is required. So, the party buying insurance should discuss the insurance cover amount with experts to get the right amount.

  • Premium

The insured has to pay an amount to the insurance company over a fixed period of time. Mostly it is paid monthly but in some cases, the insured pays some installments in advance to get a discount. The premium amount depends on the model of the car, age, fuel capacity, fuel type and other features of cover. Your premium is also based on the amount of value cover. It also considers factors such as age and profession of insured.

  • Premium saving options

There are options by which the insured can save the premium. One option is by getting discounts. Students can get a student discount on the basis of good discounts. Sometimes insurance companies also offer good discounts which can save premium. Another option is no claim bonus. In case the insured did not claim anything in last year, then he gets a discount in the current year premium. This helps the insured to pay less and save money.

  • Claims

The insured can claim compensation from the insured in case of an accident or other disaster that took place. The companies these days provide cashless claims only if the insured gets the vehicle repaired at their authorized garage. Another option is to get compensation from an insurance company and getting the car repaired from own preferred garage.

So, these all are the characteristics of car insurance. There are many companies that provide these features. Usually, there is confusion between Progressive vs Esurance. Both companies provide car insurance with all the above- mentioned features. They both provide insurance at economical prices.

About the author

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Mithilesh Chaubey has been working with international clients for over a decade. He provides comprehensive digital marketing services, coaching, and content writing services. His educational background in marketing has given him a broad base from which to approach many topics. His writing skills may be confirmed independently on various websites