But if the car gets into an accident which is not in the interest of the policyholder, or in violation with the agreement between the policyholder and the insurance company, the insurance policy will not incorporate the damages from such accident.
When there is a new active insurance policy, all deductibles under the insurance will be paid by the new car owner.
The consequence of a refusal to notify the insurance might be forfeiture indemnity and compensation if an accident happens or reduction of the indemnity and compensation or lapses in the payment if indemnity and compensation.
1. Damages from a known liable tortfeasor
2. Damages from fire, explosion, lightning or theft
3. Damages from items falling on the car.
Furthermore, there will be additional deductible if there is driving damage to the car by another person other than the policyholder, or any registered user of the three cars under the auto insurance policy.
There are certain accidents which your auto insurance policy may not cover. Under the liability insurance, your auto inside policy does not cover;
1. Injury to the driver
2. Damage from the carriage of goods by road under the acts of contract
3. Damage to the attached vehicle
4. Damage which occurred at the time the vehicle was rented out unless it can be proved that the damage is as a result of occurrence which is in accordance with the auto insurance policy
5. Damage to items belonging to the driver, policyholder, anyone stated in the auto insurance policy it a regular user.
The following accidents are not covered by the comprehensive auto insurance:
1. Damage resulting from weather conditions
2. Damage car parts during repairs unless it can be proved the damage had occurred during the driving or by fire
3. Damage in the electrician and mechanical parts the vehicle, unless it can be proved the damage occurred in accordance with the auto insurance policy
4. Damage resulting from reckless driving i.e. Overheating or no change of oil
5. Damage which occurred while the car was rented out
6. Damage which occurred from the intoxication of the driver
7. Damage caused intentionally by grid negligence
8. Loss of the car due to the seizure of the car by law enforcement authority
9. Damage under warranty and guarantee
10. Damage from the usage of the car such as wear and tear scratches on the car body and so on.
Duration of the auto insurance policy is based on the agreement between you and the insurance company.
Most auto insurance agreements are annual and are renewed yearly unless it’s canceled in writing by the policyholder or the insurance company with a month’s notice.