A car cover is important because it provides financial protection if your car is damaged in an accident. It also provides cover for damage and injury to other drivers, pedestrians, passengers, and anyone else involved in a collision. Because the likelihood of vehicle owners being involved in an accident is relatively high, it is reassuring to know that their auto policy will cover the financial loss suffered. Citizen Community Federal, are car insurance people and a bank with all required services.
Why you need Auto Insurance
It is a legal requirement and all motor owners must have minimum cover for compensation toward other people in the event of a crash and to cover related vehicle damage. A more comprehensive cover will also provide you with financial compensation should your car be damaged, stolen, destroyed by fire, or vandalised.
Benefits of Auto Insurance
- To protect your valuable asset with damage liability coverage, as well as that of others who may have a claim against you. The minimum legal cover requirements may not be enough to cover physical damage, repairs or replacement, and legal action from others.
- To satisfy the requirements of your finance lender. Most car loan companies insist on an adequate cover when they have granted a car loan in order to protect their investment. If you allow your premiums to lapse, the lender may insure the vehicle on your behalf and add the cost to your monthly loan repayments which will be much higher than normal car insurance. You will be able to rectify this situation if you reinstate your cover.
- To stay within the law and prevent penalties and fines. Driving a vehicle without insurance is illegal and could result in a fine or even being disqualified from driving altogether. Severe penalties and a jail sentence may be imposed especially if you have been the cause of a collision that caused the injury or death of others. The authorities also have the power to confiscate a vehicle driven without cover.
Types of Car policies
There are three general types of cover for motor vehicles: Third Party; Third Party with Fire and Theft; Comprehensive.
- Third Party
Third Party cover is the minimum cover required by law and covers damage to other people’s property and injury to others in the event of an accident.
- Third Party, Fire, and Theft
This type of policy is the same as Third Party but in addition, it covers the cost of vehicle repairs or replacement if the vehicle has been stolen or fire damaged.
Comprehensive automobile insurance is the highest level of cover that protects against loss or damage of your own as well as other people’s property. It can also be extended to include legal expenses and things like a courtesy car during the time that your vehicle is being repaired.
If your car is being driven by others, your insurer may allow you to add nominated drivers to the policy, as long as the main insured is the person who regularly drives the vehicle.
Some policies have additional clauses like breakdown cover for safety on the road.
How the Monthly Premium is Determined
The amount of insurance coverage you decide to buy will affect your monthly payment. Some of the decisions you will be asked to make will include what coverage, deductibles, and limits you choose to have.
The monthly premium will be worked out according to a number of factors including:
- Your age, marital status, and gender.
- The make and type of car you drive and the age of the vehicle.
- Where you park and drive your car.
- The annual mileage used.
- Your occupation.
- What you use the car for.
- Whether you have previously been convicted of a motoring offense.
- Other drivers in your family who will be driving the vehicle.
- Your credit history.
The following information may qualify you for a special discount on your car cover:
- Using the same company for your home and car coverage.
- Multiple vehicles insured with the same insurer.
- An excellent driving record.
- Low annual mileage.
- Protection devices fitted such as anti-lock brakes, anti-theft devices, and airbags.
- Having taken an enhanced or defensive driving course.
- If you are a student and you don’t use your car to go to college or university.
Premiums can further be reduced by paying a higher excess (the specified amount or percentage of a claim you will be required to contribute). The younger you are the higher your premium will be as statistics prove that younger people carry a greater risk of having an accident.
A no-claim bonus is accumulated for every year of accident-free driving which can contribute to a discounted premium when you renew your policy, although this is not always guaranteed. Another benefit of a no-claim bonus is that it will stand you in good stead when an accident happens that was not your fault. In this case, your no-claim bonus status will remain unaffected.
With car insurance Federal Bank owner you can get a substantial discount on your premium if you have not submitted a claim for a period of more than nine years. In some cases, this can be considerably less than regular monthly premiums as you will be considered to be an exceptionally safe driver.
What can an Auto Policy Cover?
Liability for damages and injury to others in an accident you are responsible for.
Uninsured Motorist expenses for damages and injuries caused by a driver with no cover or a hit-and-run incident.
Underinsured Motorist expenses for damages and injuries when the driver at fault’s insurance cover is not enough to pay for your loss.
Other Expenses Covered
Comprehensive policies can be purchased that pay for physical damage to your vehicle caused by fire, flood, theft, hail, or other specified events listed in the policy.
Medical expenses if you or a family member named in the policy is hit by a car or hurt as a passenger of a vehicle.
Towing or rental expenses after an accident.
Damages or injuries while driving a rental.
What does the Policy NOT Cover?
Equipment not permanently installed such as stereos, mobile phones, CD players, or stereos.
Driving your car for business purposes which should be covered by your company’s policy.
Driving your car outside of specified areas.
Settling your auto loan if the damaged vehicle’s market value is less than the outstanding amount owed. Car insurance Federal Bank Owner may offer you GAP cover for this purpose (Guaranteed Auto Protection).
In order to ensure that your vehicle is adequately covered and that your claim’s process will go smoothly when an accident occurs, Car insurance Federal Bank Owner recommends that you pay attention to the following:
- Pay your premium on time every month. Most insurers are strict regarding the due date for payments and will not offer grace periods. If you have an accident and your premiums are not up to date, your policy will be null and void and you will have to pay your own expenses and possibly those of others involved.
- Always keep your proof of coverage in a safe place and keep a copy in the car.
- If you have an accident and there are injuries, immediately call 911.
- Call the police before you move your vehicle from the scene.
Get the following important information while at the scene:
- The driver’s name, phone number, address, driver’s license number, expiration date of the license, and policy details.
- Write down the other car’s model and license plate number if you cannot get the license.
- Write down the names and contact information of any witnesses at the scene.
- When the police arrive, write down the badge number and other information of the officers on the scene.
- Ask the traffic officer where and when you can get a copy of the accident report and make a note of the number.
- Write down the exact time and location of the accident, the road conditions, and the weather. If possible take photographs of any skid marks, the damage caused, and anything else you think may be important when submitting a claim.
- As soon as possible after the accident call the company and report the accident to an agent. Make note of the agent’s name and the time and date of the call.
- Do not offer any information you are not comfortable with and do not agree to any liability.
For the best discounts on the following types of vehicle insurance:
- Motor Home
- Recreational Vehicle
- Boat / Yacht
- Commercial Vehicle