Car Insurance Is Mandatory Throughout The World
Car insurance is generally an agreement between one party (insured) and another party (the insurance company or firm) with the mutual agreement that in the event of loss or theft or damage to the car or automobile, the insurance company will pay compensation to the insured. Hence insurance is there for every body, right from individuals to real estate property and even automobiles.
Car insurance comes in many different schemes and the rate of interest varies in different countries. The only thing that is common is that car insurance or automobile insurance is mandatory through out the world. Whether or not the driver has a personal insurance covered on him, car insurance is a must.
The various schemes under which an automobile can be covered is as follows:
* Comprehensive: The term is self explanatory. No matter what the problem is, be it a theft, or damage or fire, your car is protected. Sometimes there is a separate premium for natural calamities like earthquake, hurricane etc. Some even provide a helpful umbrella by insuring against arson and riots. Actually it makes sense if the car is having a comprehensive policy. * Third party fire and theft: This policy provides you security if ones car is stolen or is damaged by fire accidents, but does not protect your car in case of an accident. This is one scheme that is not very expensive in terms of premium payment. * Third party: This covers any consequential damage done to other peoples property or injuries and even death. But repairs that arise due to an accident for the automobile should be borne by the owner. This policy is the cheapest and is the minimum requirement to be covered by an insurance policy. Considering the various laws, that is in vogue in different countries, the car insurance more or less falls into any of these categories. For people who need that extra bit, there are additions like legal protection and breakdown coverage, for which one pays a little more. Needless to say, if you want fewer headaches then one pays more. Once you have driven your car, claim free continuously for a certain number of years, the insurance company will allow one to protect his or her no claim bonus. This only means that should one have a fault claim then the number of years of no claims bonus will remain the same, but most of the insurance companies do their level best in pleasing the customer. Nonetheless, this may not put off your premium from mounting as most companies rate on claim history as a separate factor. The premium that is to be paid for car insurance varies from annual to half yearly to quarterly to monthly. Generally the one time payment like the annual payment is cheaper and the monthly is the most expensive. But due to completion going up, most companies split the annual premium into equal monthly payments.
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