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Selecting the Right Auto Insurance Policy

By Compuquotes Team on March 27th, 2008
Auto Insurance

The law requires anyone who operates a motor vehicle to have auto insurance to protect themselves financially, as well as others who might be injured or left with damaged property with you at fault. Types of insurance can vary to accommodate any number of needs and requirements. From simple liability insurance that protects you from minimal liabilities to more far reaching and complex policies.

Operators of passenger vehicles have different requirements than owners and operators of commercial vehicles. Taxi owners have different needs than limo. Owners. A large truck that hauls lumber would have different insurance needs than a large truck that hauls toxic material. So the needs and requirements of vehicle owners vary greatly. Legal requirements also vary greatly for private and commercial vehicles.

In general auto insurance involves five factors or conditions. These are as follows.
[Declarations] This area contains personal information regarding other persons who will be operating the insured vehicle. It will contain the information on the duration of the coverage, what type of coverage you have purchased, & information on deductibles if there are any, any policy limits and basic information on the vehicle.

[Exclusions] In this section everything in the policy that is excluded will be noted. Any policy limitations will be itemized. This area will let you know if there are any limitations in your policy that need to be adjusted to better fit your needs. Another area of a policy is its [conditions]. It itemizes all the conditions that bind and obligate both the policy holder and the carrier, including premiums to be paid, claim filing procedures and parameters and any other conditions for implementing a claim on the policy.

[Coverage parts] is the area that itemizes and outlines coverage limitations and areas of coverage. It will outline how much and what type of liabilities you are protected from. What your policy will and will not protect you from. If you are or are not covered for theft, collision, any medical, etc. It will be detailed in the coverage parts section of your insurance contract. The purpose of this section of your policy is to outline what you are paying for when you pay your premium.

[Definitions] outlines the terms of the policy holder. This where the devil is in the details��� so to speak. It will list any reason or clause that will nullify their obligations to the terms of the contract. It will detail the policy holder's rights in the event a claim is filed against the policy. Any and all possible reason tat the policy holder can divest themselves from the policy will be listed in this portion of the contract. It should be read carefully fully understood in its entirety.

Mandatory insurance requirements vary world wide. Some require only automobile coverage while others require compulsory auto and driver insurance. Limitations and stipulations vary also. How the insurance is implemented may also vary from a flat per vehicle rate to a per mile or kilometer rate. This can determined by an odometer reading or sometimes by a global positioning system.

See average annual insurance rates for more than 2,000 vehicles

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