When does auto car insurance start taking effect?
Car auto insurance does not mean that it takes care of all necessary expenses. How much you can get from insurance claims depends on the type of insurance policy that you take. And the policy that you take does not only depend on the risk factors that has been considered for taking coverage and the value of the car but also on your budget.
Therefore, you have to strike a balance between the cost of buying insurance and the probability of paying from your pocket for expenses not covered by the policy. The insurance budget comprises of the cost of buying the policy together with the deductibles, which is the part of the policy that has to be paid by you in the event of claims. The deductible that is right for you can be determined by factoring the number of claims that you expect to make during the tenure of the policy.
Third party insurance is mandatory
This insurance policy also known as liability insurance is mandatory by law and has to accompany the car the moment it is driven out of a showroom to hit the road.
Car Extended Warranty Experts – Click4Warranty said the policy has been developed with the premise that the driver is always at fault during an accident and is responsible for compensating the damage caused to life and property of the affected people. This is the most basic form of insurance without which a car is not allowed to be driven on road.
Other insurance policies
Since the most basic form of car insurance does not offer protection for personal injury to the driver nor it protects the car itself, there are many other insurance policies that can be taken to get the most tailor-made coverage.
- Personal injury protection – This is usually taken along with liability insurance as you are compensated for the injuries that can arise to you as the driver of the vehicle during an accident.
- Collision coverage – The cost of repairs of your car when it meets with an accident is covered and you get the value of the car if the insurance company feels that it has to be written off.
- Comprehensive coverage – Any damage that can happen to the car outside the purview of accidents are covered in this policy. It protects against fire, theft and damages from weather. It is your discretion whether you would take this policy or not.
- Uninsured/ Underinsured protection – The compensation that you might receive when you meet with an accident depends on the extent of liability coverage of the person legally responsible for causing the damage. This might be so little that it cannot cover the expenses you incur. Uninsured/ underinsured protection for motorists gives the additional cover to meet all expenses. The cost of this policy is very little as compared to the coverage that it provides.
Getting an insurance cover is not enough unless it has an effective date mentioned on it. All insurance policies commence on that date regardless of the date of issue. Make sure that the insurance is in force when you are moving around in your car.