Auto Insurance Basics You Need to Know

Have you decided to buy an auto insurance but have no idea how it works? Check the car insurance basics before taking a decision. This knowledge will help you to have a clear picture of what it is and what rights you, as an insurance owner, have. Let's get started!

Types of Insurance Payments

Payments for insurance can be made in various ways depending on the conditions of 2go auto insurance. Insurers practice the following types of damages:

  • Payment of cash to restore the vehicle;
  • Compensation minus depreciation of the vehicle;
  • Payment of repairs in the repair shop at the choice of the insurance company;
  • Covering the cost of repairs in any organization chosen by the insurer of the hull insurance.

The policy can provide only one type of payment or several, for example, payment of money or repair. In the second case, the applicant chooses which way is preferable for him: to receive cash or a referral for repairs. In cases where the insurance indemnity is paid in cash, the policyholder is responsible for the targeted use of funds. Therefore, the car owner must submit the car to the insurance company after the repair. According to the results of the inspection, a special act is drawn up, which is attached to the insurance contract. Failure to comply with this requirement entails the removal from insurance of body parts for the repair of which the payment was made.

Terms of Payments on Auto Insurance

Before buying insurance, you should understnand that terms of payments on insurance may vary from different insurance companies. As a rule, the term for consideration of an insurance claim does not exceed 10–15 days. If a car is stolen or broken so badly that the payment of its full cost is required, the decision making time is increased to one month or more.

The term of consideration begins after the delivery to the insurer of all documents stipulated by the insurance regulations. If the applicant brought not a complete set of papers, the case is suspended and written off to the archive, where it is kept until the missing references are received.

When deciding whether to buy or not to buy insurance, you need to remember that the harm on the auto-citizenship is compensated only for the innocent party. The traffic offender will have to pay for the repair of his car himself. In addition to a traffic accident, the car can also be damaged by other accidents: natural disasters, hitting an obstacle, attacking animals. The cost of rebuilding the property in such circumstances is in many cases fully borne by the owner of the vehicle. Find out how much insurance you need to cover more cases here.