is the contract between an individual and an insurance company, where the individual commits to pay the cost of insurance policy (premium) and obey the rules set by the insuring company. In return, the insurance provider pays for expenses associated with an accident or various covered losses. An individual who wishes to apply for an insurance policy is required to obtain an estimate of the premium for the insurance cover he/she chooses based on the their insurance needs.
An auto insurance policy is composed of various types of covers which include:
?Bodily harm to others
?Personal injury protection
?Bodily harm caused by uninsured motorist
?Damage to other peoples property
It is worth to note that each policy has a limit; therefore the insurance provider will not pay more for any claim. Pricing of auto insurance cover policies individually allows individual seekers the opportunity to select the policies that suit their exact needs and
budget. The policies are generally purchased to run for periods of six or twelve months and are renewable. A notification of premium payment or policy renewal is sent by the insurer to the customer. Individuals seeking cover for damages caused by their vehicles should also consider covering for damages to their own vehicles, and the following policies are the most common in the market:
?this covers against theft and damages caused by incidents caused by fire, falling rocks, hail,floods, vandalism, falling trees and hits from asteroids.
?this type of coverage reimburses an individual for damages to the vehicle resulting
from a collision from another vehicle or object like tree or guard rail incase the owner is at fault. The coverage also insures for damages arising from potholes or when your car rolls.
?this covers for damages to the wind shield and may include no deductible glass coverage including side windows, rear windows and glass sun roofs. This policy also has an
option of purchasing of the supplemental glass coverage.
?Uninsured motorist coverage
?under this cover, you get medical and property damage in case of an accident with a motorist who does not have insurance cover or who is underinsured.
?this is the policy that pays for towing expenses in the case where the insured vehicle cannot be driven after an accident.
Before purchasing any insurance cover, it is advisable to research on the insurance policy providers in the market. Therefore you are assured that the policy you purchase covers your
vehicle all the time according to your needs and value for money. Make sure to check on the financial strength of the insurance company because this will impact on their ability to pay claims and the period it takes for them to pay.