Auto Insurance - Fully comprehensive car insurance
In general the regulations for all types of car insurances are like those in Europe. The titles are compulsory car insurance, comprehensive automobile insurance and services.
Compulsory Insurance
To make sure that a victim of an accident gets compensation, this insurance is required by law. Driving without it is against the law. The following criteria will apply when calculating the price for car insurance:
Standard factors of compulsory car insurance
type of car
no-claims bonus
regional structure
wage group
Individual factors of compulsory car insurance
mileage per year
age of the car
age of the driver
user of the car
.
Even after discounts, for instance 20 years of driving experience, you still get 100% insurance cover.
Comprehensive Auto Insurance
There are many options when it comes to choosing auto insurance. With this insurance you are insuring yourself against accidents caused by you.
The fully Comprehensive Auto Insurance will cover the following risks:
- Accident (e.g. when crashing into a car ahead of you)
- Damage to your car caused by others
- Damage to your car caused by fire or explosion
- Theft or destruction of your car
- Damage caused by storm, thunder and lightning or flooding
- Earthquake protection
- Accidents involving animals
- Broken auto glass
- Fire caused by electrical faults
In all the above cases you will need to pay the excess stated on your policy. An auto insurance policy is a contract between you and an insurance company. You agree to pay the cost of the insurance policy, called a premium, and to obey the insurance company's stated rules. In return, the insurance company agrees to pay for certain expenses associated with an accident or other covered losses.
Optional insurance coverages such as comprehensive and collision are commonly purchased by consumers.
Each type of auto insurance coverage has a limit, meaning that the insurance company will not pay more than this amount for a claim. You are required to purchase certain minimum limits for each of the required coverages. Given the high costs associated with serious accidents, most drivers buy coverage limits beyond the minimum requirements.
Not all fully comprehensive car insurance policies are the same though. Some insurers, for example, include a courtesy car if your vehicle is off the road, or windscreen cover as a standard feature. With others, however, extras such as these come at a price.
Compensation Service
In any situation the maximum amount your insurance company will pay out is the value of your car or the damaged parts on the day of the accident. This is called reacquisition, which means the price you would need to pay for a car of the same age and mileage similar to yours. If you have a clause in the policy requiring you to pay any additional money linked to a particular problem, the insurance company will deduct this from their payment.