Auto insurance

From ArticleWorld

An Auto insurance is provided by insurance companies to cover cars or trucks or motors against loss due to accident or theft and sometimes fire. Again, the insurance may provide cover to the person, the vehicle, the third party (who is injured in the accident) and even all three. Most countries require by law that all vehicles be covered with some kind of insurance, and insurance is sold along with the sale of vehicles.

Premium

The easiest method of calculating premium is per car, per year without taking into account the distance a car has traveled in a single year. This does not seem to work out well for either the insurer or the insured. Thus, a limit is set and cars traveling less than that cut off distance limit are required to pay lower premiums than those that travel more. This has been named the cent per mile premium.

In various states

In USA along with the usual insurance practices mentioned above there is other coverage like a liability coverage which has the option of covering the policy holder in his/her own car or another car that they drive. Also, if someone is driving a car that is insured under somebody else’s policy then the liability coverage of the policy holder covers the driver. This liability cover extends when you rent a car though most car rentals cover their car against accidents and the rental is all inclusive.

In England the government had introduced a law in 1930 which required all vehicle owners to possess the least minimum of third party personal injury insurance. Now the English insurance laws are covered under the Road Traffic Act which requires all policy holders to be covered by not only third party personal injury insurance but also for damage to their property while on a public road or on a public place. The law further requires the policy holders to be covered against their liability to other passengers in the car. This is required by law and traffic policemen may ask a driver to produce legal evidence of coverage; failure to do so is regarded as a punishable offence.

The insurance rates in Northern Ireland are higher than anywhere else in England especially for male learner drivers under the age of 21.