Vehicle insurance is an insurance which people purchase for their cars, trucks, motorcycles and other kind of road vehicles. The basic use of insurance is to provide financial security against damage to the car or bodily injury that has been caused by traffic collision or against liability that could take place by the accident.
It is also known as auto insurance, car insurance, GAP insurance or motor insurance. The special terms of vehicle insurance varies with the different legal regulation in each state and region. Vehicle insurance may often offer monetary protection against theft of the vehicle or other damage or the vehicle, which is cause by things other than traffic collisions.
The larger and widespread use of automobiles began after world war one. At that stage, cars were relatively much dangerous and fast. Yet there was no compulsion of having any kind of insurance for them. That means that an injured person in the accident was not liable to get any compensation from anywhere. The drivers had to face the damage costs to the cars and the property.
The compulsion of car insurance was introduced in UK first with the act called road traffic act 1930. This act insured that all the vehicle drivers and owners are insured for their liability to dead of the third parties when their vehicle is in the public road and is responsible for the accident. After UK, Germany also enacted the same legislation in 1939.
Before going for any insurance plan or policy, it is recommendable to search and compare cheap car insurance rates available from different companies. A smart customer always makes such kind of researches before buying anything. In many countries, it is compulsory to have insurance even before keeping a motor vehicle on public roads. Most of the policies relate there insurance plans to both driver and the car. However the degree of both of them varies in a lot ways.
Some countries have made a new kind of plan called “pay-as-you-drive” which has to be paid through petrol tax (gasoline tax). That would take care of the uninsured motorists and will also charge on the basis of kilometers driven which would increases the efficiency of the insurable theoretically with the help of streamlined collection.
The rates of the insurances may vary between major insurance providing companies. One company may provide you average risk with average rate while other may provide you with more risk and comparatively lower rate. People buy insurance with the help of agents or through online quoting.
If you need cheaper insurance plans, following things should be take care of:
Bundle policies: Policies that are together are always cheaper than the ones that are with different companies. You can save a lot of money by buying multi policy discount. If you are insuring a lot of things like home, car and toys, you can insure all together with the same company to maximize your savings.
Clean driving record: Best rates are given to the safe drivers. You can get cheapest insurance plans by your own efforts. Turn the Phone off, set your control on speed and pay direct attention at the road.
Good credit: Good credit can also help you to get a cheap insurance plan. Most companies keep track of your insurance credit score. You have to keep it high and other may definitely follow.
Avoid fees: Make ways for avoiding extra fees. Many of the companies charge extra fees. They are basically charging for processing and paperwork. If you could pay your premium in full, and if payment go automatically through your account can help you in saving a lot of money. Don’t be late, and avoid late fee charges.