Auto insurance functions

Date: Jul 31 2009
Filed In: Auto Insurance Reviews, Auto Insurance101

One of the most essential when driving on the roads today is auto insurance or car insurance. Many other countries do not support or give car insurance, but most of the countries make car insurance mandatory.

The main purpose too have an auto insurance is to cover the legal responsibilities and threat like physical damage and possessions, property damages cause by your car, traffic accidents, medical expenses for people injured in the car accident. Having a car insurance helps people save up a lot of money as they don’t need to pay for the medical or damages as a result of a car crash. This will be covered by the car insurance company who use the premium that they charge their policy holder to pay for the cost.

Usually the auto insurance covers 3 parties. Most of the time your auto insurance should cover you the policy holder, the insured car and the other party’s car, driver, passengers. The auto insurance also covers against fire, theft, and or accident damage. In the case of damages caused by negligence or the fault of the driver, the driver won’t be given any of the insurance claims and the damage will not be covered by the auto insurance policy. The total amount of the cover depends on the worth and condition of the premiums.

Many countries make buying auto insurance before you drive your new car on the roads mandatory. In some cases a person without any auto insurance will not have the amount of money to pay off all the damages caused by the crash and it is a unwise decision to have your auto insurance before driving any car.

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