Auto Insurance is insurance for car, two-wheeler and three wheeler the main segment is car insurance. Auto insurance is also work as a hedge tool to protect your first investment in the automobile or car .Suppose anyone buy his or her first car and it mate with accident in first ride than the owner loss all his\her investment in a day. Auto insurance is helps to hedge the auto investment by indemnify the loss arises by the accident.
Auto insurance is also indemnifying the accidental coverage to the insurer which also gives some extra advantage to the insurer.
The main coverage area under the auto insurance comes as:
1. Coverage for the loss of vehicle: Insurance Company indemnifies value of the vehicle which insured.
2. Accidental coverage to the Insurer: Auto insurance company paid accidental claim to the insurer, claim amount depend on the basis of terms and condition.
3. Coverage the loss arises to the third party: Insurance Company paid the loss to the third party arises by the accident.
Insurance company can’t fulfill the coverage on certain Scenario:
1. Violation of rules and regulation: If the car driven by the minor age and they don’t have valid license.
2. Violation of traffic rules and regulation: If the insurer drive car after taking alcohol.
3. Not disclosed all the material fact of the insured property: Suppose the insurer use the stolen car in that condition also the insurance company not indemnify the loss arises by the accident.
4. If the insurer intentionally met with accident: If the insurer intentionally met with the accident, or damage his car than the insurance company not indemnify the loss arises to the insurer.
Thank you so much for describing the basic steps to obtain auto insurance policy. Its true that nowadays its easy to purchase a policy because of Internet. But a person should first understand all the available coverage options so as to choose the one that are needed.
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