Car Insurance Definition: Knowing the Concept of Auto Insurance Will Help Us Make Appropriate Decisions at the Time of the Election
Definition of Car Insurance
We talk a lot about buying insurance for our car. That is a requirement to circulate, that allows you to walk quietly, which is a good or bad investment. But what are we talking about exactly? Do we know the definition of car insurance ?The most important concepts derive from the fact that it is a contract in which rights and obligations are established for two parties with respect to a vehicle. Hiring insurance for our car is necessary, fundamentally, for two reasons:
- On the one hand, it is necessary to comply with Traffic Law No. 24,449 which minimally requires having a civil liability policy, which allows us to face demands that we may suffer for damages that we can cause with the car.
- To be able to protect our patrimony and person before the misfortunes that can be had in the street.
"The Motor Insurance is intended to:
- Protect the patrimony of the insured and / or driver, before the damages and losses caused by the insured vehicle or by the load that transports.
- Compensate the damage suffered by the vehicle as a result of Fire, Accident and / or Theft or Theft ".
- Pure premium: which includes the civil liability rate (variable according to the car) and a percentage determined by each insurer in relation to the accident rate, applied to the insured sum of the vehicle's hull and which varies according to the type of coverage contracted.
- Acquisition expenses: corresponds to the commission of the producer-adviser.
- Operating expenses: refer to those administrative costs of the insurance company.
- Commercial Premium: is composed of the above, that is: for the pure premium, the acquisition and exploitation expenses.
- Some insurers also include an amount corresponding to the amount for this concept and the financial charge.
The satisfaction that comes with getting a new vehicle is one of the great experiences we experience in our adult life, the complacency is even greater if it is the first vehicle we buy and this feeling is not only because we are acquiring a new good but because that good represents our independence, our mobility autonomously without having to depend on other means of transport.
Just as a new vehicle in the family or for work activity represents great joy and ease for our daily lives, the new acquisition also requires certain obligations or duties as drivers we must meet. One of them and perhaps is the main one, since it is what we first think about after buying a car is to obtain an insurance policy for that car.
If we go to the most theoretical and think about the definition of car insurance we can say that an insurance policy is a contract we made with a company or insurance company with specific clauses so that this is responsible for financial compensation in case an unforeseen, eventual or sinister occurrence with the allegedly insured vehicle while we pay a monthly amount of money agreed previously.
It should be noted that the amount we pay monthly will depend on the type of policy we hire, since in the Argentine insurance market there is a wide range of products and services in terms of security for your vehicle .
One of the most basic insurance and also represents an obligation to be met by all those who drive a car on routes or streets in Argentina is the civil liability insurance also called insurance against third parties of the automotive. This policy guarantees that the company will respond in case of third-party claims for damages that may be caused to both the life and the property of other people involved in the accident or accident. We speak of obligation since this insurance is protected by law 24,499 of the national constitution, also called the Traffic Law, therefore the person who does not comply may be punished by this legislation since it is assumed that he is committing a crime.
Auto insurance
An insurance is a protection that not only protects your assets, but also benefits your economy in case of an accident or some other unforeseen event.The benefits of insurance are many, in the case of automobiles, depending on the coverage and the policy that you acquire, it reduces a large part of the expenses caused by an accident; injuries to third parties and their own; legal defense and damages caused to properties, among other things.
There are many products that are offered in the insurance market, which allows you to choose the one that best suits your needs and pocket.
Do not leave it for later
Imagine that you are in your car and suffer an accident on the road; that in addition to the mishap there are other damages, including people; or that one day your vehicle is stolen. If you did not have auto insurance, what would you do? Definitely you would not be prepared but you would have to face a heavy expense, for which you might end up in debt.
If you are one of those who think "I do not need auto insurance because I am very responsible when driving", we tell you that even if you are, unfortunately you are not free from any mishap since you can not always be the cause, you could be the affected.
Upon receiving your policy, you should check that all information is correct: name and address of both the insured and the insurance institution, policy number, description of the vehicle, contracted coverage, amount of coverage, sum insured, deductible, validity and form of payment.
Keep in mind that you have 30 days to request the correction of the information. It is important that all your personal data is true, otherwise the insurer may not pay the compensation.
DOCUMENT
The insurer must deliver a document with the general conditions of the product contracted with the coverage and exclusions, as well as rights and obligations of both the insurance institution and yours.
COVERINGS
The most common coverages are: broad, limited and liability, but the exact characteristics of each depend on the insurer with whom you hire. Below we give you the most common features of each type:
Wide
- Material damage
- Total theft of the vehicle.
- Civil liability of goods and people.
- Extension of civil liability when driving any car.
- Legal defense, legal assistance and bail payment.
- Medical expenses of vehicle occupants.
- Road assistance in case of mechanical or electrical failures.
- Drag crane.
Limited
- Total theft of the vehicle.
- Civil liability of goods and people.
- Legal assistance and bail payment.
- Medical expenses of vehicle occupants.
Civil liability
- Civil liability of goods and people.
- Legal defense and legal assistance.
- Medical expenses of vehicle occupants.
Now, beyond the type of coverage you hire, all insurances establish a series of exclusions in which the collection of the same can not be made effective, for example: partial theft of parts or articles left in the vehicle, such as telephones, bags, computer equipment, backpacks, etc .; likewise, if the driver does not have a license or permit to drive or if he is drunk or under the influence of drugs.
MORE INFORMATION
- Cousin: It is the price that determines the insurer to protect your car and whose amount you must cover as agreed. You can do it annually, some institutions offer you the possibility of paying the insurance up to 12 months without interest, associated with a credit card, do accounts and opt for the option that best suits your needs.
- Deductible: It is the amount that is established in each policy and that you must cover in case of an accident, this can be fixed or according to a percentage of the value of your vehicle.
- Sum assured: It is the maximum amount that the insurer must cover in case of an accident and is determined according to the value of the vehicle's invoice, or to the commercial value established in the corresponding guide books.
- Report it immediately to your insurer.
- Identify the driver and vehicle involved.
- For no reason you reach a verbal agreement.
- Wait for the company's adjuster.
For your insurance cover the damage caused by fire, lightning, explosions, earthquakes, hydrometeorological hazards (such as cyclone, hurricane, landslide, hail and flood), falling objects, buildings, structures, trees, branches, among others, you should check that you have contracted a broad coverage, since the civil liability does not cover this type of damage.
Before a flood of consideration or flood, the advisable thing is not to continue advancing with the car, independently of which you have contracted the wide coverage. If you decide to move forward, it can be considered as risk aggravation, since it increases the possibility of damage to the vehicle and the insurer could deny payment.
What should you do in case of car accident?
- Keep calm
- Leave the car where it is, call the insurer and report the problem.
- Try to have the policy number at hand, since it will be necessary to raise the report, in case you do not have it, the insurer will inform you about the procedure to follow.
Some advices:
- Compare the prices, legal services and additional products offered by different insurers, as well as the conditions established to make the insurance valid.
- According to your income, select the policy that best suits your possibilities.
- For the insurance quote, particularities of each vehicle are taken into account such as: age, brand and model of the unit, type of coverage, age of the driver, etc.
- Do not sign any blank page, read the contract in detail and check the cases or claims provided, the clauses and all exclusions.
- If your insurer does not give you the attention it offered you, you can request support at CONDUSEF.
- Remember that if you fall behind in your payments, it is likely that the insurer will cancel the coverage immediately.
- Verify that your policy contains all the elements that you were offered when hiring.
