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Details about Car Insurance
In the United States, it is generally accepted that car insurance covers risks and losses associated not only with driving, but also with the ownership of a car.
What includes an insurance contract?
An insurance contract usually has a set of standard provisions. Among the mandatory information related to the specifics of the car:
- year of manufacture;
- make of a car;
- engine capacity;
- special registration numbers of the car.
Additional information is always indicated:
- how it is used (what is the average mileage);
- whether a car is used in the pool system.
Be sure to indicate the insurer loss limit. All the above data and some others are given on the so-called declarative page.
The contract begins with an explanation of the terms. For example, “your insured car.” “Your insured car” can be meant both your car and the one that you later purchase during the contract term. This means that under one insurance contract one, two or more cars may be insured. Let’s imagine: a customer bought a car on a day off when insurers are not working. So, the customer’s similar general policy will automatically apply to a new car. With such a general policy, a client can buy a car anytime, anywhere, and drive it. It’s another matter that he/she must inform the insurance company within 10 days that he purchased the car and extend the contract for it. Naturally, such a policy will cost more.
Lines of insurance
The entire standard package of a car insurance policy is divided into 5 separate lines of insurance.
Line “A” refers to customer liability. Speaking about the responsibility of the car driver, this implies covering various losses associated with lawsuits for the damage caused by their client or for any damages related to driving: damage to someone else’s property, collisions, etc.
Line “B” – medical insurance for injuries sustained while using the car. The fundamental difference between “A” and “B”: in the first case, the client’s expenses are insured, in the second he is insured to receive payments for treatment if he is injured. This may also include items for which both the driver of this car is insured and family members who are with him, who also suffered an accident. (In any of the lines by agreement, additional conditions, reservations, restrictions are included as separate objects of insurance coverage.)
Line “C” is the third subsection provides coverage in case of damage caused to you by a person who, drives an uninsured car in violation of the law, or in the event that the accident is made by a person who hide from the car accident location. The technical part of this subparagraph refers to the reimbursement of medical expenses that may result from your injury. As for material damage, it is reflected in a separate subsection.
The following subline describes the liability of insurance companies for property damage. This subline contains two more parts:
- for damages associated with a traffic accident and a collision;
- for all other damages.
This section lists its set of exceptions. For example, a client cannot use the car as a taxi. If he/she uses it as a taxi for the commercial transport, then he needs to purchase another insurance policy. If it turns out that the client used the car as a taxi, and signed a contract without indicating this, he will not be compensated.
The next line includes the conditions that the client must fulfill in order to receive a refund. It starts with a listing of your responsibilities in the event of an accident. One of which, the need to call the police and the requirement to immediately start an investigation. Another example: for medical expenses, the client must agree to be examined by a doctor.
The following subsection contains general exceptions and reservations related to the entire contract. One of them, for example, may indicate that coverage extends to a customer if they drive in the United States, Canada, or Puerto Rico. If an accident occurred in Mexico, he will not receive a refund. In order to get it, you need to purchase an additional policy.
Everything described above related to the so-called basic insurance contract. Some states may require other modified insurance coverage. It is much wider in coverage.
How much does it cost to insure the car?
When determining the insurance rate, a sufficient objective set of indicators is used. At the same time, the cars are assessed by their age, by technical condition, etc.
The average cost of an automobile insirance policy, depending on the state, can range from $500 to $1,200 . If the client pays right away, then it costs him/her less. The insurance coverage can be paid in equal installments. The contract validity starts from the moment of signing the contract and making the first amount, and it does not matter if the client has paid the full insurance or not.
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