Based on the high rate of accidents that occur each year, it is imperative that anyone who drives a car, whether it be your car or a friend’s car, should have an auto insurance policy, even if it is the smallest of all. insurance policies available.
An insurance covers the policyholder and in most cases covers other people who use the car or the driver. However, if the car is in an accident that is not in the interest of the policyholder, or in violation of the agreement between the policyholder and the insurance company, the insurance policy will not cover the damages from said accident.
In cases where the insured vehicle is sold to another person, the new owner is covered by Public Liability Insurance and also by the comprehensive auto insurance policy (if any) within 3 weeks after the change of ownership. When there is a new active insurance policy, all insurance deductibles will be paid by the new car owner.
Auto insurance does not cover damage to vehicles owned by the business for sale
Depending on the auto insurance policy agreement between you and your insurance company, you may not need to notify them when the terms of the policy agreement change. Refusal to notify insurance may result in loss of compensation and indemnity in case of loss or reduction of compensation and indemnity or interruption of payment of compensation and indemnity.
Therefore, to avoid the consequences mentioned above, whenever there is a change in the information in the policy, immediately notify your insurance company.
You can buy the same car insurance from two different insurance companies without canceling the initial insurance with the first company, but when an accident occurs, the agreement in your car insurance policy will apply, and this can mean that both companies pay the half the cost. for the accident each.
Another important thing to keep in mind regarding car insurance is the deductibles that are based on the car insurance policy agreement. Deductibles are deducted only once in cases of an insurance event involving third party liability and damage under comprehensive auto insurance.
No deductible will apply in situations such as:
1. Damages of a person responsible for the known damage
2. Damage due to fire, explosion, lightning or theft
3. Damage from objects falling on the car.
In addition, there will be an additional deductible if someone other than the policyholder or any registered user of the three cars under the auto insurance policy is injured while driving the car.
There are certain accidents that your auto insurance policy may not cover. Under liability insurance, your interior auto policy does not cover;
1. Driver injuries
2. Damages arising from the transport of goods by road by virtue of contractual acts
3. Damage to attached vehicle
4. Damage that occurred at the time the vehicle was rented, unless it can be proven that the damage is due to an event that is in accordance with the automobile insurance policy.
5. Damage to things of the driver, policyholder, any person indicated in the auto insurance policy or regular user.
The following accidents are not covered by comprehensive auto insurance:
1. Damage resulting from weather conditions
2. Damage auto parts during repairs, unless it can be proved that the damage was caused by driving or fire.
3. Damage to the electrical and mechanical parts of the vehicle, unless it can be proven that the damage occurred according to the auto insurance policy.
4. Damage resulting from reckless driving, i.e. overheating or failure to change oil
5. Damages that occurred during the rental of the car
6. Damage caused by intoxication of the driver
7. Damage caused intentionally by network negligence
8. Loss of car due to seizure of car by law enforcement authorities
9. Warranty and warranty damage
10. Damage due to the use of the car, such as wear, scratches on the body, etc.
The duration of the car insurance policy is based on the agreement between you and the insurance company. Most auto insurance contracts are annual and renew annually unless canceled in writing one month in advance by the policyholder or insurance company.