While taking car insurance, a person will have to read through the Terms and Conditions before buying the policy. As all claims can be processed only according to the terms and conditions agreed to, every individual has to understand the various conditions before agreeing to sign the papers. If there are certain conditions, that you do not understand or, are not clearly written, you will have to ask for clarification from the required authorities.
Consideration Paid on the Car Insurance
Car insurance is always made for a particular period. You will have to pay a certain consideration as premium, according to the terms agreed to. The insured will be indemnified for his loss or damage to his car and its accessories. The loss or damage may arise due to fire explosion, burglary, theft, riot, earthquake, typhoon, terrorist activities, landslide, etc. These are conditions that may or may not occur, but the premium has to be paid, to get your car insured.
Insurance will also be made for the glass components, rubber, and nylon parts and for depreciation of the car, due to wear and tear over its lifetime. Damage to the external paints may also occur over the years. Insurance will cover the cost of repair and replacement of parts.
The sum insured on the policy will be an understanding between the policyholders with his insurer when the policy period commences. The depreciation rate will be calculated according to the age of the car and the mileage run over its life.
All terms and conditions will adhere to the Vehicles Act of each country. Though the basic conditions are the same in all countries, there are certain differences that vary with each country. The details of injury have to be clearly provided to claim the insurance amount.