This is security that is provided for motor vehicles against calamities. Auto insurance gives assurance for compensation in the case of a road accident involving an insured vehicle. This cover also protects against other losses incurred as a result of other calamities. Other damages may result from fire, weather disasters or collision with stagnant objects.
This insurance policy is usually affected by diverse factors. Initially, there lacked compulsory covers on vehicles hence endangering lives in cases of accidents. Later, the compulsory vehicle insurance was actualized for all motor vehicles. Not only were the passengers in the car insured, but also passengers. Another excess amount is also charged in the event of an accident.
This protects the vehicle and gives the owner assurance in the case of destruction. It also helps in that the passengers and pedestrians also get compensated in case they are involved in the accident. There are a number of factors that usually determine the premium charged on a particular vehicle.
The residential place of the car owner determines the amount of premium to be paid. If the person lives in a place with high crime rate, then the premium charged is usually high. The sex of the vehicle owner also determines the premium charged.
Similarly, age is another factor in that young people who are new to driving usually attract high premium charges. One’s consistency in driving usually determines how much they will pay as premium. The career of the driver is also evaluated when it comes to premium charges determination. The distance might determine the amount of monthly payment to be made as premium. The mileage to be covered affects the possibility of the occurrence of unfortunate events.
A business insurance on the other hand is a cover that protects a business against losses to the business. A business may be covered against a range of risks that may be incurred. A company will check the probability of calamities before taking an insurance cover.
Intentional and non intentional mistakes can be covered for to avoid losses by the company. To be safe in the event of theft or damage to property, a property insurance policy is vital. Product liability insurance is also an insurance policy provided for businesses. In the case of disruption that leads to losses for a business, an insurance cover may be taken.
Another cover that is also offered in business insurance is the cover against business insurance . To avoid losses, an organization should be covered for its property and business operations. A covered business will usually thrive in its activities and have better performance.