Car and home insurance

Car Insurance, often used interchangeably with ?motor insurance? or ?car insurance?, is an insurance policy that provides coverage against losses incurred due to car accidents. Through car insurance, an insured can easily avail of various benefits provided by the insurance company in respect of losses occurred because of car accidents.

CAR INSURANCE IN THE UK

In United Kingdom, car insurance is generally termed as Motor Insurance. The concept of motor insurance was introduced in 1930, when the U.K. Government set up a law according to which all motorists are required to have at least third party personal injury insurance.

The Act states that every person deriving a vehicle on the road is required to be insured against their liability for injuries to other persons or their property resulting from use of a vehicle on a public road or in other public places.

The insurance certificate issued by the insurance company contains legal evidence that the vehicle specified on the document is certainly insured.

TYPES OF CAR INSURANCE POliCIES

Following are the basic types of car insurance policies :

Liability Coverage Liability coverage can be broadly classified into two categories:

Bodily Injury LiabilityProperty Damage Liability

Physical Damage Coverage Physical Damage Cover can be broadly classified into two categories:

Comprehensive CoverageCollision Coverage

Uninsured and Underinsured Motorist Coverage Uninsured and Underinsured Motorist Coverage can be broadly classified into four categories:

Underinsured Motorist Property Damage

Uninsured Property Damage

Underinsured Motorist

Uninsured Motorist

Other Coverage Other insurance coverage may include the following :

Personal Injury Protection Coverage

Medical Payments

Travel Protection Plan

Accidental Medical Protection Plan

Rental Car Reimbursement

Accidental Death Benefit

PRICING STRATEGY FOR THE FUTURE

In almost all the car insurance plans, the premium charged by the insurance companies is based upon certain factors such as car characteristics, selected coverage, car usage, driving history, credit rating, age and gender of the driver. However, in case of governmental liability insurance, there are fixed premium charges.

In case of mandatory liability insurance, though in some countries, risk factors are taken into consideration, whereas, in other countries, a fixed rate of premium is charged, irrespective of the state of an individual.

HOW TO FILE A CLAIM

In case of the occurrence of an accident, it is the duty of the insured to inform the insurance agent about it and immediately file a claim. Before filing claims, the insured should ensure that he has attained the following documents in order to ease the processing of claims:

Name of the driver License number of the driver Insurance policy number A copy of the police report Contact numbers of the witnesses Medical bills in case of injury, etc.

VIOLATING THE LAW

A driver who has not got himself or his vehicle insured is known as an uninsured driver.