Auto insurance is a very important thing and should be undertaken by every car owner & drivers. The auto insurance is the protection or guard of the damage incurred by the vehicles or injuries received by the driver due to some sort of accident. Damages to the vehicle due to any kind of natural calamities such as flood, thunder and lightning, rain, land sliding, strike riots inundation, and/or any sort of malicious or mean damages, etc. are not covered in any normal insurance type All the above damages are defined as Own Damage losses. Auto insurance for such risks is not at all compulsory (mandatory) it is sole discretion of the owner of the vehicle. The “Comprehensive Insurance” is the insurance of the vehicle which covers all the risks of all damages and ruins on the vehicle as well as on the ruined property.
In the above mentioned incidents liabilities of the vehicle or car insurance act upon. There are many types of auto insurance available in the market now a day. Some of the available auto insurance policy has a minimal coverage on the damaged car and property and even minor injuries on the human body. Rest of the auto insurance in the market provides only some minor damages on the vehicle such as minor scratches and dents on the cars caused by the accident of the policy holders of the car insurance policy. There are some of the auto insurance policies which only cover physical injuries of the drivers caused by the accidents of the human body of the policy holders of the insurance policy.
There are certain responsibilities which are legal in nature & should be entrusted with the auto insurance companies. The main purpose of these auto insurance is to protect the car and its driver from accidental damages. In case of auto insurance the state requires certain amount of liabilities or responsibilities. These liabilities are mostly financial in nature. The policy holders of the auto insurance needs to pay back a certain insurance premiums to the company while enjoying the auto insurance coverage. There are also some kinds of auto insurance available now where the accidental damages and human injuries of the driver who might be the policy holder along with the passenger of the vehicle are covered during the time of accident.
If any vehicle which is used for commercial purpose such as a car shared by many people endures an accident while the policy holder driving the car or present inside, also if the policy holder is solely responsible for the occurrence of the accident then the other passenger may claim monetary assistance from the policy holder. Before purchasing any auto insurance one is always advised to read the instructions and understand the entire clause for the above mentioned critical cases.
It is always beneficiary for the policy holder to choose an auto insurance policy which would cover the maximum amount of ruins in case of physical injuries and materialistic damages for not only the driver or policy holder but also other passengers.
The basic level of auto insurance is some kind agreement or bond between the policy holder who is considered as the first party and the auto insurance provider company which is said the second party. There is another party called the third party which is the most important one. The third party is the person who generally has the major involvement in the car accident.
The legal responsibility of the auto insurance company or provider
As a matter of fact as a general consideration accident might have occurred at least once to every driver once in a while even to the most careful one. Mostly the accidents occur due to the mistake made by the driver himself. Accidents though minor, can cause huge damages on properties. In such cases the liabilities or legal responsibility of the car or auto insurance acts on. There are various sorts of auto insurance. Some of the auto insurance policies available in the market cover a small amount of accidental property damages and human injuries. Others only cover the accidental ruins such as scratch and dents which might have been incurred by the car of the individual during the time of accident.
The liabilities or legal responsibility of insurance provider is to provide protection to the assets of the policy holders. The state always requires some sort of responsibility for any insurance. The state requires certain proof of the financial liability of the driver while driving a car. A certain amount of premium has to be paid and in turn the insurance company will provide accidental coverage to the policy holder and the car in case of an accident. Sometimes the accidents cause so much damage to property or car and even injuries to the driver himself or herself that the auto insurance money are not enough for the policy holders.
If a car is most used by a group of people or used commercially & that car while enduring an accident along with the driver & other people present inside the car & the accident occurs due to the policy holder’s mistake, then these passengers are legally able to claim money from the policy holder. So, while purchasing an auto insurance always be aware of such things. And moreover, it is advised that while choosing the car insurance choose the one which covers maximum damages and injuries of not only the driver or the policy holder but also the other passengers present in the car while the accident.
Non-insured or under insured motorist protection
The last but not the least basic insurance policy is considered for the individual who are not insured or under insured. There are many possibilities when the drivers do not literally cause the accident but many damages are caused. In such case, if the faulty driver or rider does not have auto insurance then no monetary support, property damages and even the injuries caused will not be covered. So, it is suggested to depend on the own auto insurance company for any monetary coverage.