car insurance 101 (1)

car insurance, or auto insurance, refers to a type of commercial insurance that is responsible for bodily injury or death or property damage caused by natural disasters or accidents.

Motor vehicle insurance, or "vehicle insurance", is a means of transportation insurance which takes the motor vehicle itself and the liability of third parties as the subject of insurance.

Its insurer clients are mainly legal persons and individuals with different types of motor vehicles; its insurance targets are mainly various types of cars, but also include special vehicles such as trams and battery cars and motorcycles.

definition

Auto insurance refers to a type of property insurance. Also known as auto insurance. It is a kind of transport insurance with the motor vehicle itself and the civil liability of the motor vehicle as the subject of insurance.

Development history

Origin of the story

The world's first automobile insurance appeared in the United States in 1898. American Traveler Insurance Co., Ltd. in 1898 gave Truman Martin of Buffalo, New York the first auto insurance. Martin was very worried that his car would be hit by a horse. There are only more than 4,000 cars in the United States, but the number of horses has reached 20 million, and the car remains the main form of transportation. After more than 100 years, the United States has 220 million cars and the number of horses has been reduced to 2 million horses. Auto insurance, which was considered a novelty over a century ago, has become a common phenomenon.

First insurance

The first automobile insurance policy was issued in 1895 by the British Legal Accident Insurance Company with a premium of £ 10 to £ 100 for an automobile liability insurance policy, which can be insured under a increase in insurance premiums.

Development of automobile insurance

The real development of auto insurance is that after the Second World War, on the one hand, the popularity of cars made the risk of road accident a universal social risk; on the other hand, many countries will include all kinds of

Motor vehicle civil liability is included in the scope of compulsory insurance. Therefore, the auto insurance business is a universal insurance business worldwide.

Characteristics

The method of compensation for motor vehicle insurance is usually repair, but if the replacement price of the vehicle is cheaper than the cost of repair, the insurance company is likely to declare that the vehicle is completely damaged. In general, the amount of auto insurance coverage is the purchase price of the new car or the value of the vehicle at the time of insurance, but the vehicle is in service and is depreciated. In addition, the insurance company will set an absolute deductible, so in case of total loss, the compensation is definitely It will be less than the amount of insurance. The insurance period for this type of insurance is generally one year or less. If no claim is made during the insurance period, you can benefit from the preferential treatment rate not compensated when you renew the insurance. .

classification

Basic insurance

Basic auto insurance includes loss of vehicle insurance and liability insurance.

Vehicle loss insurance refers to motor vehicles suffering from natural disasters or accidents that meet the provisions of the insurance contract, and the insurer must compensate for losses caused by the vehicle itself.

Liability insurance means that when a motor vehicle encounters an accident, causing injury or death or loss of property to another person, the insurance company must indemnify. Liability insurance is compulsory insurance in most countries of the world because it protects the interests of innocent victims.

Additional risk

Additional insurance for motor vehicle insurance includes: insurance against theft of entire vehicles, individual insurance in the event of glass breakage, insurance against loss of vehicles, insurance against loss by spontaneous combustion, insurance against loss of new equipment, liability insurance on board, faultless liability insurance and liability on board for falling goods Insurance, exclusive deductible special insurance, etc. Those who have not taken out basic insurance cannot take out additional insurance.