Do you know what you are getting into?
Before signing any dotted line or agreeing to pay a monthly/annual fee, know first what it means of being insured, its definition and additional details you need to understand.
Here are easy to remember explanation especially for newbies on the wheel:
- It is a form of risk management for significant potential monetary loss to another entity in exchange for monetary compensation;
- Protection against conditional liabilities;
- Ensuring debt repayment after death;
- Protecting the automobile against theft or losses sustained because of accidents.
How it works
Basically, this type of system works in t
he ‘pooling risk’ or a large group of people (that includes you in it) wanting to be protected from a particular cost by paying a ‘premium’. Because of the number of individuals protected are large and only a few do ever get into accidents all at the same time, this allows the company to profitably operate but also pay for claims that may arise.
The factors
Some might be preventable and some can never be foreseen or avoided. So if deciding of acquiring one, below are the important things regarding danger (while driving the vehicle) and choosing insurance quotes online:
- Type: having to fix any damage, bodily injury and total failure of the vehicle;
- Effects: time spent in the hospital, payments for rentals and loss of it;
- Costs: small to very large amounts;
- Mitigation: avoidance or not driving at all, safe driving and transferring the risk.
Getting the agents right
Though the last one seems impossible to do by stopping you using a vehicle just to avoid the hazards, so many people opt of coverage. Options are abundant but its best to shop around for cheap auto insurance quotes. There are two types of agents to consider
- Captive: they represent a single company and required to only do business with that one company;
- Independent: represent multiple corporations and works on behalf of the client to find the most appropriate policy.
Quick and sure
The usual policy requires you to pay annually for a full year. Yet what if you are just in need cover for only a few months or for example, going on a road trip and borrowing a friend’s van for the weekend. It would be an expensive option if you add a named motorist to your existing plan with the no-claims discount make vulnerable when they indeed get in an accident.
Simple solution
Get a short term car insurance. It is temporary and usually between 1 to 28 days only. Added advantages are:
- Your own no-claims discount won’t be affected by any claim made by other people;
- The minimum age usually ranges from 18 to 21 years old;
- A great safety buddy when teaching a friend or relative to drive;
- And other short trips like a son or daughters trip home on the holidays.
Usual information needed to fill in below:
- Details including name and address;
- License and history in driving;
- Details of the vehicle to be insured;
- Date and time you’d like to begin and end the coverage
Did I miss something? Please let me know and it would be my pleasure to help you.