Understanding Auto Insurance

• Loss or damage due to war, nuclear accident and drunken driving.
• Loss or damage when the vehicle is used outside the geographical area specified, or driven by an unlicensed driver.
• Loss or damage due to wear and tear, mechanical/electrical breakdown and depreciation.

• Liability to employees involved with the operation of the automobile. One is insured against death or injury caused by one's automobile to the automobile's cleaners, conductors and drivers.

• Liability for injury or death to the third-party. One is insured against death or injury caused by one's automobile to the occupants of other vehicles, passengers and pedestrians.

• It covers loss or damage to the automobile caused by transit by air, road, rail and elevator, terrorism, malicious act, cyclone, flood, hurricane, storm, earthquake, strikes and riots, burglary, fire, explosion, lightning, self-ignition or an accident.

• It does not cover any loss or damage due to drunken driving or if the driver does not have a valid driving license. It also does not cover loss or injury due to mechanical/electrical breakdown and wear and tear.

• The type of the automobile.
• The age of the automobile.
• The age of the driver.
• The place where you park your automobile.
• The distance covered by the automobile every year.
• The driving history of the driver (this includes accidents and traffic tickets).
• Surprisingly, gender may also matter in certain countries.

• Do not take the cheapest policy. Make sure everything pertinent to you is covered.
• It is important to have sufficient insurance anticipating a serious accident.
• Rules can vary from country to country and even state to state. Make sure you have done your research.

• Check the reputation of the insurance company. Make sure it doesn't delay the claim process or put difficult demands for getting the claim sum.
• Get an agent to help you out. Doing things on your own may be tough.
• Make sure you pay your premiums on time. If the deadline has expired you will not be eligible for the insurance.

• You could install anti-burglary equipment on your automobile to make it less susceptible to theft.
• If you insure with the same insurer always, you could get a discount on the premium.
• Understand the terms and conditions of the policy thoroughly before purchasing the insurance.

• Choose your automobile wisely. The size and type of automobile affects the insurance premium.
• If you use public transport or car-pooling, you will reduce the usage of your automobile, which will bring down the insurance premium.

• These days it is convenient and safe to use online insurance. It is no longer the complex and stressful chore of yesterday.
• You can cover towing of the automobile, if it is immobilized in the insurance as well.

Make sure you have an automobile insurance policy, which is tailor-made to your needs, and the premium is not a burden to your pocket. Do take the relevant policy and drive with a sense of security and a stress-free mind. Carelessness regarding insurance may cost you dearly.