Vehicle insurance is generally known as car insurance or GAP Insurance, or even moto insurance. This insurance is normally purchased for motorcycles, trucks, cars and other road vehicles. The basic function of the insurance is tro protect the vehicles from damage or bodily injured caused by a collision. It varies from one country to another one, and few of them also includes the financial protection towards theft and possible damage to the vehicle caused by other than collision.
Dealing with car insurance means engaging with some levels of coverage matter. It covers the insured party or medical payment, property damaged caused by the insured, physical damage of the insured vehicle, third parties like bodily injured, property damage, and also car and people, fire and theft, no fault auto insurance, rent vehicle cost, repairing cost, accidents involving uninsured motorist. Still, all of those matters requires certain condition and circumstances.
If you are dealing with auto insurance, you must be familiar to what is called excess. Yeah, sometimes, people tend to call it as deductible, a certain amount of payment which is charged everytime you are going to repair shop which is finally collected to the insurance policy. Generally, this payment is only paid for repairing cost of a car damage by accident. In addition, once the ar is entitled as total, it means that the company will deduct the excess on the policy. If the accidents is the other driver fault, and of course if it is accepted by the third insurer, there is a chance for the vehicle owner to claim the excess payment of the other driver’s insurance company.
Then, you have to know as well about a compulsory excess. An excess is called compulsory is it is the minimum excess payment that is possibly accepted on the insurance policy. Compulsory excess will vary from one individual to another one depending on personal details, history of the driving records and also the insurance company.
Further, people will also deal with volunteer excess. It is meant to reduce the premium rate, so the insurer party is willingly to pay higher deductible excess rather than the compulsory excess. It can be told that volunteer excess is the extra or over amount of money which is paid more than the compulsory excess. It is generally written in the claim section on the policy form of the insurance. In short, the bigger excess that is paid means the less financial risk haunting the drivers. Of course, the insurer is allowes to manage the premium rate to the lowest.
You may also wonder how a company could release the basic amount of the premium charges. Generally, premium charge of insurance company has been regulated by governement, but it is also possible for the company to personalize the mandated charge due to certain circumstance and also shadowing the goverment rules. It often happens to the insurer to prefer to self personalized premium rate rather than the mandatory one because they could asses their capability and decide how much rate that they could afford. Statistical data are the main sources to determine the amount of the premium charge which is not mandated by the government. The premium rate is basically depending on the expected cost of the future claim by several factors like accident. Those factors cover the type of the car, its characteristics, the type of the coverage, the details of the driver including age and track record, and also the usage of the car including mileage.
Some auto insurance take gender as the factor to determine the amount of the premium. Later, it is sentenced to against the law using men discrimination to determine the premium. Further, age can be the main factor to rise the premium rate. Generally, young driver with no track driving record cost higher that those which are experienced. However, there is still a chance to get lower premium rate if the young driver join a trusted training center that possibly reduce the risk of getting involved in collision. Some incurance company also gives new bonus for a student with good record on academic matter. Some rules that ban teens to drive after dark or giving rides to other teens also work to reduce the risk.
How to Read Your Insurance Policy?
DEC PAGE: Abbreviated phrase for Policy Declaration page
MED PAY: Abbreviated phrase for Medical Payments
UIM: Acronym for Underinsured Motorists
UM: Acronym for Uninsured Motorists
PD: Acronym for Property Damage