Getting Started With an Auto Insurance Policy

The auto insurance policy provides extensive coverage for you, your vehicle and third party depending upon the type of insurance policy you have chosen. You have to pay a certain amount as premium and the insurance company pays you for the damage or loss which has been sustained by your car. Car insurance is expensive but also the best way to be secure in time of crisis such as theft or accident of your precious automobile. There are different types of auto insurance available:

  1. Fully comprehensive auto insurance policy: As the name suggests, it is comprehensive because it covers you fully against all types of loss like theft, accident or other damages. You get 100% security with this type of insurance for your vehicle.
  2. Third Party: It provides coverage for another person (third party) who has suffered damages from your car. It has to be your fault and is applicable if you own an old vehicle.
  3. Third Party (Fire  Theft): This provides third-party coverage against loss by fire and theft.
  4. Specialized car insurance: This type of insurance is for the vehicles which are 25 years old and which require special services. But before you purchase this type of policies, you have to be sure about the source from which you are going to purchase this policy. You must decide your budget beforehand, as this type of policy is usually expensive.

Auto Insurance Policy
After deciding your budget, you must select the type of coverage you want for your policy. Discuss your requirements and problems with these companies and choose the policy that is able to provide you with the coverage required by you.

It is important to know what coverage you have before you decide to file your claim and the best time to do this is usually when you get your renewal papers. Quite often, people find out after they have filed their claims, that they were not covered for something or that their deductible is higher than they thought.

Take time to find out the following parts of your insurance policy:

1. Policy declarations: This is the personalized part of your insurance that tells you all about who is covered by the insurance, what type of vehicle is covered, policy number, etc.

2. Coverage: It lists out the costs of each type of coverage and that for the specific insurance like body injury and comprehensive coverage. It also spells out how much your deductibles are.

3. Endorsements: These are changes which your insurance company makes in your policy. Read these endorsements very carefully as they may make changes in the wording and coverage. Read them at the initial stage when you get the insurance policy or at any time when you are holding the policy.

4. Exclusions: These are the factors that may make the insurance company reconsider its decisions of providing an auto insurance policy and may prompt the company to cancel the insurance.

5. Conditions: These are the stipulated points stating the requirements you and the insurance company need to fulfill to maintain the policy such as how you pay your premium or cancel an auto insurance policy.

Understanding your auto insurance policy is very crucial for proper use of the policy in a time of need.

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