If you are a owner of a car, motorcycle, truck or any other type of road vehicle, you must be insured by law.
Vehicle insurance protects the owner, the vehicle and other drivers against liability in the event of any accident. It provides financial compensation to cover injuries caused to people or their property.
In most developed countries insuring your vehicle is obligatory by law. For your van there is a minimum amount of cover required under the legislation.
It is obligatory to have a valid driving licence for the category of motor vehicle you are driving. Assuming you are driving legally, with a valid driving licence and vehicle insurance, you may claim assuming that your insurance is valid.
There are certain things that a car insurance policy will not cover, sometimes called “exclusions”, unless specifically included. Every vehicle owner should be fully aware if such exclusions are clauses in the policy deed.
The cost of vehicle policies can alter tremendously. An insurance agent who knows the auto market will be able to select the best policy for you. However, many factors will affect the premium you have to pay.
In addition to the three prinicpal types of vehicle insurance, one of which is compulsory by law, you may choose to buy optional insurance, that might include motor legal protection.
In some cases, it is not obvious who is to blame for the accident, and the amount of your liability cannot be determined. In this case, legal advice should be consulted unless the insurance firms concerned are willing to settle the matter between them.
The cost of taking legal action can be restrictive. Should this concern you, enquire about the cost of this additional cover in addition to the statuary requirements.
Insurance companies require that you act with “utmost faith”. This means that you need to disclose any factors that the company may deem relevant. If you’ve been convicted of vehicle offences previously, or have a bad accident record, you will probably have to pay a higher premium.
Another way of reducing your insurance premium is to agree to pay the first portion of any claim.
If you have a automobile accident which causes damage, you must provide your name and address, and details of your insurance policy to another driver who reasonably needs it. Assuming you are in charge of the vehicle legally, with a valid driving permit and car insurance, you can claim assuming that as your policy is valid.
Many insurance companies limit your insurance cover based on the use of your vehicle. This signifies that you may only be covered when you use your vehicle for domestic.
UK law attempts to protect all drivers by setting out precise laws before you are allowed to drive, and subsequently during the time you continue to drive.
In the UK the minimum amount of cover is called third party, which means that damage or injury to another person will be the responsibility of your insurer. A car owner can opt for Fire and Theft with obvious benefits. A comprehensive policy covers you when your vehicle be damaged in an accident. In many parts of the world property and automobile cover can be expensive in major cities and cheap car insurance is not easy to find without seeking advice from a specialist broker.
The so called Green Card is a document that is accepted in over 40 countries. Despite the fact that it offers no insurance cover, it is proof that the normal legal requirements for third party liability insurance are insured.
In the USA, each State imposes its own laws regarding vehicle policies with a minimum liability. For example in Delaware the statistics are 15/30/5. These stats refer to injury, property, and the total cover per accident. A driver with this legal amount, who became liable for a higher figure, might be sued for the difference.
In Canada, in addition to a minimum, it is obligatory that a driver has cover for both medical expenses and loss of income.