Vehicle Insurance Terms
To date, vehicle insurance terms are one of the most important points to which it is necessary to pay special attention during the insurance process. The purchase of an auto protection policy is mandatory for any vehicle in circulation. The amount of premiums will depend on the profile of the driver, the characteristics of the car and the selected coverage level, which depends on the type of contract chosen.
Get the most affordable quote on vehicle policy
Thus, it is necessary to fully understand all subtleties of the coverage agreement. So, in order to succeed you need to pay attention to the following contract aspects. Try to compare auto insurance rates online & save on policy paying less.
Auto Insurance Is Obligatory
If you own a vehicle and are going to use it, you must insure it, at least with a guarantee of liability to third parties. You will also need to purchase auto protection if your car is rented.
All land vehicles entered into circulation must be insured. These include:
- cars (private, commercial or unlicensed)
- 2 or 3 wheeled vehicles (motorcycles or scooters)
- self-adjusting mowers equipped with a seat that allows the operator to maneuver the machine.
The vehicle must be insured, even if it is not normally in circulation. For example, a vehicle which is no longer used and is towed along public roads to the demolition center must be under protection as well.
Necessary Steps and Content of the Contract
To sign a protection contract, you can purchase services from one of the following organizations:
- general protection agent,
- insurance company.
Also, it is possible to contact several agents at the same time in order to compare their offers.
You need to specify the type of coverage that you want to purchase. You must, at least, guarantee the vehicle liability protection. However, you can extend this guarantee.
If you have already been insured, you need to send a certificate received by the previous insurer. Moreover, the insurer may ask you to fill out the questionnaire so that he can assess the risks and calculate the amount of the premium.
Don’t forget to mention the following aspects:
- whether you use your car for work,
- permanent driver/s of the vehicle,
- major accidents you have been in,
- whether you received incurred sanctions (suspension of the license, etc.).
The information you provide to your insurer must be accurate. A false statement or omission can have serious consequences and is considered as fraud. In fact, the compensation that you should have received can be reduced and you will have to partially compensate the victims’ harm in the event of an accident.
If the moment of fraud is found, the contract can be declared null and void: the protection will not intervene to compensate the damage received, but it will have the right to keep the contribution.
Proposal and Signature of the Terms
The insurer must give you a proposal for protection, which includes:
- a fact sheet on prices and guarantees,
- a copy of the draft contract and its addendum or a detailed information notification.
The documents must be clear and written in apparent character. They must contain precise information about the following:
- risk cover or decline list,
- law and competent authorities in case of dispute,
- triggering of the guarantee for the liability coverage (by the harmful accident or claim).
If the protection proposal is appropriate for you, you must sign it and give it to the insurer along with the requested documents. Once the signed proposal reaches the insurer, the contract is formed and you can’t go back on your decision. However, in some cases, you may have a withdrawal period.
To reconsider your decision and cancel the contract, you have a 14-day withdrawal period in case of such situations:
- you have been approached by telephone or at your home,
- you responded to a mail merge (by regular mail or email),
- the contract was concluded via the internet.
Send your insurer a registered letter with acknowledgment of receipt indicating your intention to cancel your contract. You won’t have to justify your decision. However, you will have to pay the premium in proportion to the number of insured days. The insurer must refund the amounts already paid within 30 days of the termination. After the expiration of this period, the costs paid will increase due to legitimate interests.
In order to be fully aware of the issue of auto insurance terms, it is necessary to pay special attention to above-mentioned aspects. Follow tips to pay less on auto insurance to save more on policy. Once you complete all necessary steps, the insurer will send you a certificate proving the existence of the contract. After the conclusion of the contract, you can safely ride the streets without fear for possible damage caused to your vehicle.