Insurance basically, is a means by which the risk of loss is transferred from one entity to the other. The entities involved in the Insurance, is the Insurer and the Insured. The terms and conditions under which a risk is taken over by the insurer is written down as an agreement and executed by both the parties. In acknowledgment, the insurer issues the Policy of Insurance. The insurer accepts to reimburse a part or whole of the risk in exchange for a small payment of money known as premium. The quantum of premium payable depends on the value of the insurance and the risks to be covered. Insurance comes to the rescue, when the property incurs a loss/damage, when the belongings are lost by way of fire, vandalism, or theft or loss is due to negligence/omissions.
In the United States of America, it is compulsory for the owner of a vehicle to insure against risks. The authorities will impose fines during check ups, if the vehicle is not insured. The risk may be involving self, the vehicle or loss to a third party property or life. The liability of the loss may be so huge that it may not be possible to meet the liability out of one's own pocket. Insurance comes to the rescue, when the property incurs a loss/damage, when the belongings are lost by way of fire, vandalism, or theft or loss is due to negligence/omissions The policy is available for a vide variety of risks. It is left to the discretion of the vehicle owner to go for additional coverage as a precaution.
A liability clause in the policy ensures that, in case of the loss to the third party property, the liability is taken care of by the Insurance Company. The policy can be a "Comprehensive policy" covering the loss/damage to the vehicle, other than collision, which includes fire, vandalism, theft, or by animals. "Collision policy" covers the insured vehicle subject to a portion of the liability met by the owner known as deductible. An "additional interest policy" may be taken to cover the damage to the property of a third party. The "total loss" to the car can also be covered in the policy as an additional clause. This helps when the car is beyond repair because of an accident.
The insurance companies in the United States of America have introduced a scheme in which at the time of renewal of the policy a discount is allowed if the car is very sparingly run. A policy can be bought online, the premiums can be paid online, and any additional coverage can be included over phone, claims can be settled in gross time settlement. The damages caused to the vehicle or the third party will be assessed at the shortest possible time and the claims are settled at the earliest. A car owner can buy a policy from the company directly instead of an agent. This facility is known as "Direct Insurance". It is advisable to the car owner, to get a quote from different companies, compare the rates and services, and go through the record of accomplishment of the company before deciding on a particular Insurance company for the Insurance of his car.
Source by J Rathbone
