Auto Insurance Terms And Conditions And How They Apply
Normally, all insurance policies cover some damages but exclude others. While insuring a vehicle you should check the offered auto insurance terms properly. Many insurance policies can be used for light motor vehicles and are applicable for social, domestic or business purposes. These policies may cover different risks and provide compensation accordingly. But there are certain exclusions in each policy. Getting into the habit of reading between the lines can be of vital importance for you. All the motor vehicles owners, be they ordinary individuals or corporate groups, must get their car insurance policy registered. An auto insurance policy protects the motor vehicle from loss or damage of the vehicle.
Let's investigate the risks that are covered under auto insurance policy terms: * Natural disasters like flood, earthquake and cyclone may cause damages to you or your vehicle and an auto insurance policy may provide you compensation in such cases. * We have no control over fire, lightning, ignition accidents, sudden explosion, burglary or theft. Auto insurance policies cover them all. * Your vehicle may suffer destruction during a riot or a strike. Therefore insurance companies cover these damages. * Transit by road, air or elevators may cause some serious damages to your car. Insurance policies provide cover for them. * You too can cause accidents and if someone gets injured or dies, you are liable for the injury or death of that person. In theses cases, your insurance company pays the compensation to the third party. * Loss of electrical equipments due to accidents is also covered under such policies but only after the payment of some premium amount. The insurance company grants limited compensation in following cases: * The company may grant the amount spent on repairs or replacement depending on the sum insured and depreciation. * There is a limited amount for garaging and towing charges. It varies from policy to policy. *Damage to the tires is compensated in the form of 50% recovery amount. * If the damage exceeds the total cost of the vehicle, your case can be written-off. There can be certain situations when your insurance company refuses to pay. Let's consider some of the common exclusions that form auto insurance policies. * Some policies are not applicable beyond a definite geographical area. Then, irrespective of who caused the accident, one is not provided with the insurance benefits. * Drunken driving is the commonest exclusion given by auto insurance companies. *Sometimes, negligent driving can reduce the insurance benefits you are entitled to * Nuclear war is such a condition which is not covered under most auto insurance policies. * Depreciation, wear and tear and failure or breakage can also be part of the exclusions. |
