Vehicle Insurance
Next to home contents insurance, vehicle insurance is the most common type of insurance policy purchased today. Vehicle, or auto or motor insurance, covers the policy holder in the event of damage caused by or to the insured motor vehicle. Premium payments vary widely based as they are on the type and age of the vehicle insured, as well as the age and driving history of policy holder. Competition is steep for this most lucrative of business with insurance companies constantly offering deals and attractive terms to win new clients to their policy pools.
Although kept as a closely-guarded secret, gender differences between insurance claimants is significant, and policy prices will vary depending on the sex of the policy holder. While a politically hot potato, risk assessors are sensitive to such differences, and essentially call a spade a spade. Of more critical importance is the premium difference by age, with by far the greatest number of vehicle accidents occurring to vehicle owners in the 18 to 25 year age bracket. This is of significance to society as a whole in terms of the damage and suffering caused by such accidents, but it is also of great pertinence to vehicle insurance actuaries who will insist upon extremely high premiums being paid by persons in that age bracket, particularly if they have had previous convictions for bad or dangerous driving.
Modern developments in vehicle insurance now make use of technology, making premium adjustments for vehicles fitted with speed and distance gauges such as odometers, as well as those with built-in global positioning devices (GPS). These devices can determine whether drivers have exceeded speed limits and the GPS devices can track vehicles in the event that they have been stolen.
Motor insurance is normally of two distinct types – third party cover and comprehensive cover. Third-party insurance will provide the holder with cover in the event that damage is done to a third-party vehicle or individual. Such cover would compensate any person or vehicle damaged as the result of the insured party’s actions. Comprehensive covers third-party damage as well as damage done to the insured’s own motor vehicle. Third-party cover is obligatory in most countries, while comprehensive cover, while not obligatory, is certainly advised.
For more infomation on small business insurance choose from the list below. |
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