What Are The Terms & Conditions of Auto Insurance?

Terms and Conditions of Auto Insurance: So you want to know the terms and conditions of auto insurance? 

Due to the high rate of accidents which occur each year, it is essential that anyone driving a car whether it is your car or a friend’s car must have an auto insurance policy even if it is the least of all insurance policies available. Here’s List Of Questions High Networth People Should Ask About Insurance
What Are The Terms & Conditions of Auto Insurance?
Insurance incorporates the policyholder, and in most instances, it includes other people who use the car or the driver.

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.


In cases where the insured vehicle gets sold to another person, the new owner is covered by the third party liability Insurance and also by the comprehensive car insurance policy (if there is any) within a period of 3 weeks after the change of ownership.

When there is a new active insurance policy, all deductibles under the insurance will be paid by the new car owner.

Auto insurance does not include damage to vehicles in company possession for purpose of sale
Depending on the car insurance policy agreement between you and your insurance company, there might not be a need for you to inform them when the terms in the policy agreement changed.

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.

Hence to avoid the outcomes stated above, whenever there is a change in the policy information tell your insurance company immediately.
You can purchase the same auto insurance from two different insurance companies without stopping the initial insurance with the first company, however, when an accident happens, the agreement in your car insurance policy will be applied, and this may imply that both companies pay half is the cost for the accident each.
Another important thing to note about auto insurance is the deductibles which are based on the agreement in the auto insurance policy. Deductibles are deducted only once in cases of an insurance event involving both third party liability and damages under the comprehensive auto insurance.

No deductible will apply in situations such as:

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.

What Are The Terms & Conditions of Auto Insurance?
Facebook Comments Box

Leave a Comment

What Are The Terms & Conditions of Auto Insurance?

Terms and Conditions of Auto Insurance: So you want to know the terms and conditions of auto insurance? 

Due to the high rate of accidents which occur each year, it is essential that anyone driving a car whether it is your car or a friend’s car must have an auto insurance policy even if it is the least of all insurance policies available. Here’s List Of Questions High Networth People Should Ask About Insurance
What Are The Terms & Conditions of Auto Insurance?
Insurance incorporates the policyholder, and in most instances, it includes other people who use the car or the driver.

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.


In cases where the insured vehicle gets sold to another person, the new owner is covered by the third party liability Insurance and also by the comprehensive car insurance policy (if there is any) within a period of 3 weeks after the change of ownership.

When there is a new active insurance policy, all deductibles under the insurance will be paid by the new car owner.

Auto insurance does not include damage to vehicles in company possession for purpose of sale
Depending on the car insurance policy agreement between you and your insurance company, there might not be a need for you to inform them when the terms in the policy agreement changed.

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.

Hence to avoid the outcomes stated above, whenever there is a change in the policy information tell your insurance company immediately.
You can purchase the same auto insurance from two different insurance companies without stopping the initial insurance with the first company, however, when an accident happens, the agreement in your car insurance policy will be applied, and this may imply that both companies pay half is the cost for the accident each.
Another important thing to note about auto insurance is the deductibles which are based on the agreement in the auto insurance policy. Deductibles are deducted only once in cases of an insurance event involving both third party liability and damages under the comprehensive auto insurance.

No deductible will apply in situations such as:

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.

What Are The Terms & Conditions of Auto Insurance?
Facebook Comments Box

Leave a Comment