Last updated on June 23rd, 2018 at 03:09 pm
Car insurance (also known as auto insurance, GAP insurance, transport insurance, or motor insurance) is insurance purchased for cars, trucks, motorcycles and other vehicles. The primary use for the financial protection against property damage and / or personal injury resulting from traffic collisions and against liability that could also result therefrom. The specific conditions of the vehicle insurance varies with the legal requirements in each region.
Car Insurance – Governmental
In many jurisdictions it is compulsory for car insurance before making or keeping of a motor vehicle on public roads. Most countries relate insurance to both the car and the driver, but the degree of each varies greatly.
Some jurisdictions have experimented with a “pay-as-you-drive” insurance plan that is funded through a gasoline tax (gasoline taxes). This would address issues of uninsured motorists and charge based on the miles (kilometers) driven, which in theory could increase the efficiency of the insurance, through streamlined collection.
Car Insurance – Australia
In South Australia, Third Party Personal insurance from the Motor Accident Commission included in the license fee for people over 17. A similar arrangement applies in Western Australia.
In Victoria, Third Party Personal insurance is the Transport Accident Commission also included, with a levy, in the car registration fee.
In New South Wales, Compulsory Third Party Insurance (commonly known as CTP Insurance) is a mandatory requirement and each person car must be insured or the vehicle can not be considered legal. Therefore, a motorist can not drive the vehicle until it is insured. A ‘Green Slip,’ 2 another name CTP Insurance including general, by the color of the pages printed on the form is known, must be obtained through one of the five approved insurers in New South Wales. Suncorp and Allianz both hold two licenses to give CTP Green Lips – under the Suncorp GIO and AAMI and Allianz under the licenses and CIC Allianz / Allianz licenses. The other three licenses for the CTP Green Lips give are owned by QBE, Zurich and IAL – NRMA. APIA now delivers CTP, but only for those over 50 who no longer work full time.
A similar arrangement applies in the law.
In Queensland, CTP is a required part of the registration of a vehicle. There is the option of the insurer, but the price is government regulated by a tight band.
This is based on third party insurance usually cover only bodily injury liability. Comprehensive car insurance is sold separately for property damage to cover and lid can be used for events such as fire, theft, collision and other property damage.
Car Insurance – Canada
Several Canadian provinces (British Columbia, Saskatchewan, Manitoba and Quebec) a public auto insurance system, while the rest of the country’s private police custody. Basic auto insurance is mandatory throughout Canada with each province’s government determining which benefits are included as minimum required auto insurance and what benefits are options available for those seeking additional coverage. Accident benefits coverage is mandatory everywhere except for Newfoundland and Labrador. All provinces in Canada have some form of no-fault insurance to accident victims. The difference from province to province is the extent to which tort or no-fault is emphasized 3 The most common coverage against loss of or damage to the driver’s own vehicle is optional -. A notable exception is Saskatchewan, where SGI provides collision coverage (less than a $ 1000 deductible, such as Collision Damage Waiver) as part of the basic insurance. In Saskatchewan, residents have the opportunity to have their car insurance through a tort system but less than 0.5% of the population have taken this option.
Car Insurance – Germany
Since 1939, it is compulsory to have third party personal insurance for the keeping of a motor vehicle in all states of Germany. Besides, every vehicle owner is free to take out comprehensive insurance. All types of car insurance are provided by some private insurers. The amount of the insurance contribution is determined by various criteria, such as region, type of car or the personal style of driving.
The minimum coverage determined by German law for auto liability / third party personal insurance:
7.5 million for bodily injury (damage to persons), 1 million for property damage and 50,000 euros for financial / wealth losses in no direct or indirect connection with physical injury or property damage. Indeed all-in/combined Insurance companies usually offer some insurance limit of 50 million euros or 100 million euros (about 141 million dollars) for bodily injury, property damage and other financial / wealth loss (usually with a bodily injury coverage limit from 8 to with 15 million for each physically injured person).
Car Insurance – Hungary
Third-party car insurance is mandatory for all vehicles in Hungary. No exemption is possible to deposit money. The premium covers all damage to HUF 500M (about € 1.8 million) per accident with no deductible. The coverage is extended to 1,250 m (about € 4.5 million) in case of injury Huf. Vehicle insurance from all EU countries and some non-EU countries are valid in Hungary on the basis of bilateral or multilateral agreements. Visitors with car insurance not covered by such agreements needed for a monthly renewable policy to buy at the border.
Car Insurance – Indonesia
Third-party car insurance is a mandatory requirement in Indonesia and each individual car and motorcycle to be insured or the vehicle can not be considered legal. Therefore, a motorist can not drive the vehicle until it is insured. Third car insurance is included with a levy in the vehicle registration fee paid to the government agency known as “Samsat”. Third Party car insurance is regulated by Law No. 34 Year 1964 Re: Road Traffic Accident Fund and only to bodily injury, and managed by an SOE called PT. Jasa Raharja (Persero).
Car Insurance – India
Auto insurance in India is about the insurance covers the loss or damage caused to the car or parts due to natural and manmade disasters. It provides accident insurance for each owner of the car while driving and for passengers and third party liability. There are a number of general insurance companies also offer online insurance for the vehicle.
Auto insurance in India is mandatory for all new vehicles for both commercial or personal use. The insurance companies have tie-ups with leading car manufacturers. They offer their customers direct auto quotes. Auto premium is determined by a number of factors and the amount of the premium increases with the increase in the price of the vehicle. The progress of the Auto Insurance in India may be coincidence, theft claims or third party claims. Some documents are required for the use of Auto Insurance in India, as duly claim form, copy of the RC vehicle, driving license copy, FIR copy, original estimate and the policy signed copy.
There are different types of Auto Insurance in India:
Private car – in Auto insurance in India, private car is the fastest growing sector, it is mandatory for all new cars. The amount of the premium depends on the brand and the value of the car is what the car is registered and the year of manufacture.
Two Wheeler Insurance – The Two Wheeler Insurance under the Auto Insurance in India covers accidental insurance for the drivers of the vehicle. The amount of the premium depends on the current showroom price multiplied by the depreciation rate fixed by the Tariff Advisory Committee at the time of the beginning of the policy period.
Commercial Vehicle Insurance – Commercial Vehicle Insurance under the Auto Insurance in India offers coverage for all vehicles not used for personal purposes, such as trucks and HMVs. The amount of the bonus will depend on the showroom price of the vehicle at the beginning of the period, to make use of the vehicle and the location of registration of the vehicle. Auto insurance generally includes:
Loss or damage by accident, fire, lightning, spontaneous combustion, external explosion, burglary, burglary or theft, malicious act.
Liability for third party injury / death, third party property and liability to paid driver
On payment of an additional premium, loss / damage to electrical / electronic accessories
The car insurance is not included:
Consequential loss, depreciation, mechanical and electrical failures, malfunction or break
When the vehicle is used outside the geographical area
War or nuclear hazards and driving under the influence
Car Insurance – Ireland
The Road Traffic Act 1933, requires that all drivers of mechanically propelled vehicles in public places at least liability insurance, or to have obtained exemption – generally by depositing a (large) sum of money for the High Court as a guarantee against claims . In 1933 this figure was set at 15,000 pounds. 7 The Road Traffic Act 1961 8 (now in force) repealed the 1933 Act, but these sections are replaced with functionally identical sections.
Since 1968, those making deposits require the consent of the Minister of Transport to do this with the sum by the Minister.
Those not exempted from obtaining insurance must get a certificate of insurance from their insurer, and shows a part of this (an insurance disc) on their vehicles windscreen (if fitted). The certificate must be fully submitted to a police station within ten days upon request of an officer. Proof of having insurance or an exemption must also be provided to pay for the engine load.
Those injured or suffering property damage / loss due to uninsured drivers can claim against the Motor Insurance Bureau of uninsured drivers fund of Ireland, as the wounded (but not those suffering damage or loss) from hit and run crimes.
Car Insurance – New Zealand
Within New Zealand, the Accident Compensation Corporation (ACC) offers national no-fault personal injury insurance. 9 Injuries related to motor vehicles operating on public roads fall under the Motor Vehicle Account, for which premiums are collected through levies on petrol and through vehicle license fees.
Car Insurance – Norway
In Norway, the owner of the vehicle the minimum of liability insurance for his vehicle (s) – of any kind. Otherwise, the vehicle is prohibited to use. If a person drives a vehicle from someone else, and has an accident, the insurance covers the damage.
Car Insurance – Romania
Romanian law mandates Răspundere Civilă car, a motor vehicle liability insurance for all owners of vehicles with damages to third parties.
Car Insurance – South Africa
South Africa assigns a percentage of the money from petrol into the Road Accident Fund, which goes towards compensating third parties in accidents.
Car Insurance – United Kingdom
In 1930, the British government passed a law that every person who drives a vehicle on the road at least third party personal injury insurance. Today UK law determined by the Road Traffic Act 1988, which was last amended in 1991. The law requires that motorists either be insured, have an effect, or have a specified deposit (£ 500 000 from 1991) with the Auditor-General of the Supreme Court, against their liability for injuries to others (including passengers) and for damage to other persons’ property, resulting from use of a vehicle on a public highway or other public places.
It is an offense to use a car, or allow others to use, without assurances that the act while on the road (or public place Section 143 (1) (a) RTA 1988, as amended 1991), but has no such legislation applies on private land.
Road Traffic Act Only Insurance is different from a third party only insurance (as listed below) and is not often sold. It provides very little coverage to the requirements of the Act. For example, Road Traffic Act Only Insurance has a limit of £ 1 million for damage to property of third parties – usually third party only insurance has a greater limit for third party property damage.
The minimum level of insurance cover commonly available and which satisfies the requirement of the law, called third party only insurance. The level of coverage by a third party only insurance is basic, but exceeds the requirements of the law. This insurance covers all liability to third parties, but does not cover other risks.
More generally purchased from a third party, fire and theft. This includes all third party liabilities and includes the owner of the vehicle against the destruction of the vehicle by fire (whether malicious or as a result of a vehicle fault) and the theft of the vehicle itself. It may or may not be for vandalism. This type of insurance and the two earlier types do not cover damage to the vehicle caused by the driver or other hazards.
Comprehensive covers all the above and damage to the vehicle by the driver himself and vandalism and other programs.
This is usually the most expensive type of insurance. For valuable cars, many insurers only offer comprehensive insurance.
Vehicles which are exempted from the obligation to fall under the law, owned by certain municipalities and local authorities, national park authorities, education authorities, police, fire, health and security agencies.
The insurance certificate or cover note issued by the insurance company is legal proof that the vehicle specified on the document is insured. The law says that an authorized person, including the police, a director of insurance for inspection to produce. If the driver can not be the document upon request and proof of insurance can not be found by other means, such as the Police National Computer, drivers are no longer issued a HORT / 1. This was an assignment by seven days, at midnight of the date of issue, a valid insurance certificate (and usually other driving documents as well) to a police station at the discretion of the driver. Failure to install an insurance policy to produce, is a criminal offense. The HORT / 1 was widely known – even by the issuing authority in the treatment of the public – as “Producer”.
Insurance is more expensive in Northern Ireland than in other parts of the United Kingdom. Vague citation needed. In 2010 the cost of car insurance has risen by an average of 33%.
Most motorists in the UK are required to have a vehicle permit (sticker) prominently display on their vehicle when it is kept or driven on public roads. This helps to make sure that most people have adequate insurance on their cars, because an insurance certificate must be produced when a disc is purchased, although the insurance must be valid at the time of purchase and is not necessary for the life of the vignette.
The Motor Insurers’ Bureau (MIB) compensates victims of road accidents caused by uninsured motorists and identified. It also has some of the Motor Insurance Database, which includes details of every insured vehicle to contain the country and serves as a means of sharing information between insurance companies.
On 1 March 2011 the European Court of Justice in Luxembourg ruled that the sex could not be used by insurers to set auto insurance premiums. The new regulations come into force from December 2012. Citation needed
In June 2011 a new law known as Continuous Insurance Enforcement force in the UK means that a vehicle must have a valid insurance as a vignette, whether or not kept on public roads or non-powered 16 . If the car must be “imposed” for whatever reason, the trademark should be handed over and Sorn declaration form to say that it is off the public road.
Car Insurance – United States
The rules for auto insurance vary with each of the 50 U.S. states and other areas (see separate orial).
Car insurance may cover some or all of the following items:
The insured (medical payments)
The insured vehicle (property damage)
Third parties (car and people, property damage and bodily injury)
Third party, fire and theft
In some jurisdictions, coverage for injury to persons riding in the insured vehicle is available without regard to fault in car accident (No Fault Auto Insurance)
Other conditions under what circumstances each item is covered. For example, a vehicle must be insured against theft, fire or accident damage independently.
An excess payment, also known as a deductible is a fixed contribution to be paid every time a car is repaired with the costs billed to a car insurance. Normally this payment is made directly to the accident repair “garage” (the term “garage” refers to an establishment where vehicles are serviced and repaired) when the owner collects the car. If one car is declared as a “write off” (or “total”), then the insurance company will deduct the excess agreed on the policy of the settlement payment it makes to the owner.
If the accident was the other driver’s fault, and this error is accepted by the insurer of the third party, the owner of the vehicle are capable of the overpayment from the insurance of the other company to recover.
A compulsory excess is the least excess payment the insurer will accept the insurance policy. Minimum excesses depend on the personal information, driving record and insurance company.
To cut the premium, the insured to offer a higher excess (deductible) to pay more than the compulsory excess demanded by the insurance company. The voluntary excess is the extra amount in addition to the compulsory excess, agreed to pay in the event of a claim on the policy. If a larger excess reduces the financial risk borne by the insurer, the insurer is able to offer a much lower premium.
Basis of premium charges
Car insurance risk selection
Depending on the jurisdiction, the insurance premium or imposed by the government or determined by the insurance company, in accordance with a framework of rules adopted by the government. Often, the insurer will have more freedom to the price on physical damage coverages than on mandatory liability coverages.
If the premium is not imposed by the government, it is usually derived from the calculations of an actuary based on statistical data. The premium can vary depending on many factors that are believed to have an impact on the expected cost of future claims to have. These factors include the car characteristics, the coverage selected (deductible, limit, covered hazards), the profile of the driver (age, gender, driving history) and the use of the car (commuting or not , predicted annual distance driven).
On March 1, 2011, the European Court of Justice decided controversial insurance companies that gender as a risk factor in the calculation of insurance premiums was in breach of EU equality laws. 19 The Court held that the automobile insurance companies were discriminatory against men, and these practices must stop.
Teenage drivers who have no driving record a higher car insurance premiums. However, young drivers are often offered discounts if they undertake further driver training on recognized courses, such as the Pass Plus scheme in the UK. In the U.S. many insurers offer a good quality discount for students with good academic record and resident-student discounts for those who live away from home. Generally insurance premiums tend to be less at the age of 25 years. Some insurance companies offer “stand alone” in particular car insurance for teenagers with lower premiums. By placing restrictions on teenagers’ driving (the ban on driving in the dark, or giving rides to other teenagers, for example), these companies effectively reduce their risk. 20 A teenager driving a safer car as a sedan instead of a flashy sports car, can also lower insurance premiums. 21 Senior drivers are often eligible for retirement discounts, as a result of the lower average miles driven by this age group. Rates may increase for senior motorists after the age of 65, due to increased risk associated with many older drivers. Usually, the increased risk for drivers older than 65 years associated with slower reflexes, reaction times, and more damage-prone as a result of aging. Citation needed In addition, older drivers, aged between 60 and 70 in the U.S. must be able to demonstrate competence to maintain a license 22.
American driving history
In most U.S. states, traffic offenses, including running red lights and speeding, to assess points on a driver driving record. Since more points suggest an increased risk of future violations, insurers periodically drivers’ records, and may be increasing premiums. The laws vary from state to state, but most insurers have a moving violation every three to five years for increasing premiums. Accidents affect insurance premiums similarly. Depending on the severity of the accident and the number of the evaluated points can increase by as much as twenty to thirty percent. 23 Any driving convictions be disclosed to insurers because the driver is assessed by the risk of earlier experiences while driving on the road.
Statistics show that married drivers are less accidents than the rest of the population average, so that policy owners who are married often have lower premiums than single people.
Classification of vehicles
Two of the main factors that go into determining the underwriting risk of motorized vehicles: performance and retail costs. The most available providers of car insurance underwriting restrictions on vehicles that are either designed to be able to deliver faster speed and performance, or vehicles that retail above a certain dollar amount. Vehicles that are commonly considered luxury cars generally expensive physical damage premiums because they are expensive to replace. Vehicles can be classified as high-performance cars will generally carry higher premiums, because there are more opportunities for risky behavior. Motorcycle insurance can run lower house-life premiums, because the risk of damage to other vehicles is minimal, but still have a higher liability or personal injury premiums, because motorcyclists to deal with various physical risks, while on the road. Risk classification on cars also takes into account the statistical analysis of reported theft, accidents and mechanical failures at any given year, make, and model of car.
Some auto insurance is no distinction regarding the extent to which the car is used. However, there are low mileage discounts offered by some insurers. Other methods of differentiation include: on-road distance between the habitual residence of a subject and their ordinary, everyday destinations.
reasonable distance estimate
Another important factor in the determination of the auto-premiums the annual kilometers on the vehicle, and for any reason. Driving to and from work each day at a certain distance, especially in urban areas where public transport routes are known, presents different risks than how a pensioner who works may no longer use their vehicle. Usually this information was provided solely by the insured, but some insurers have begun to collect regular odometer readings to verify the risk.
Cent per Mile Now 25 (1986) argues classified odometer-mile rates, a kind of usage-based insurance. After the company applied its risk factors, and the customer has accepted the offered rate per mile, then customers buy prepaid miles of insurance protection is needed, like buying gallons of gasoline (gallons of gasoline). Insurance automatically ends when the odometer limit (recorded on the insurance of the auto-ID card) is reached, unless there is more distance purchased. Customers love miles on their own counter to know when to buy more. The company does no after-the-fact billing of the customer and the customer does not have a “future annual mileage” figure for the company to obtain a discount to estimate. In the case of a traffic stop, an officer can easily check that the insurance is valid, by comparing the figure on the insurance card on the counter.
Critics point to the possibility of cheating the system by odometer tampering. Although the newer electronic odometers are difficult to roll back, they can still be defeated by disconnecting the odometer wires and again later. However, as the cents per Mile Now website points out:
In practice, resetting odometers requires equipment plus expertise that makes the steal of insurance risky and uneconomical. For example, at 20,000 miles 32.200 km to steal continuous protection while paying for only the 2000 in the range 35000 to 37000 on the clock, it would need to be done at least nine times, the mileage to be held within the narrow 2,000-mile 3.200 km range covered. There are also powerful legal deterrents to this way of steal insurance protection. Odometers have always served as a measuring device for resale value, rental and leasing charges, warranty limits, mechanical breakdown insurance, and cents-per-mile tax deductions or reimbursements for business or government travel. Odometer tampering has been detected during processing the claim, the insurance expires and under decades old state and federal law, punishable by heavy fines and imprisonment.
Among cents miles per system rewards drive less automatically, without cumbersome and costly administrative GPS technology. Uniform per mile exposure measurement for the first time provides the basis for statistically valid rate classes. Insurer premium income automatically keeps pace with increases or decreases in driving activity, cutting back on resulting insurer demand increases and preventing today’s windfalls to insurers when decreased driving activity lowers costs but not premiums .