Car Insurance

Auto insurance or car insurance or motor insurance is the investment made by the vehicle owner in case a risk is incurred while the lifetime of its usage. The primary aim is to provide protection against losses incurred as a result of theft, fire damage, or accident damage independently. Such type of Insurance usually covers: the Insured party, the insured vehicle and third parties.

In first world countries, it is mandatory to purchase auto insurance before driving on public roads. Penalties in form of substantial fine, license and/or registration suspension or revocation, as well as jail, are enforced too.

In some cases, the insurer enjoys the freedom allot the price on physical damage coverage than on mandatory liability coverage.

Other features of Auto-insurance Companies are:

• Gender - Since women are less prone to auto-accidents than males, due to their low rate of driving habit, the companies keep the youth surcharges lower for former than the latter.
• Age - Teenage drivers with negligible driving experience have higher car insurance premiums.
• Reasonable estimation – Insurance Companies rely on a reasonable estimation of the average annual distance expected to be driven which is provided by the insured
• GPS-based system, Odometer-based systems and OBDII-based system are also incorporated.

Some of the multinational Insurance Companies in the Auto Insurance industry are:

•  All State Insurance Company

•  The Chubb Corporation

•  The Farmers Insurance Group of Companies

•  The Hartford

•  Liberty Mutual Group

•  Metlife

•  Nationwide

•  Prudential Insurance Company of America

•  State Farm

•  Travelers Insurance