What Role Does Car Insurance Company Play

There are many reasons why people buy a car insurance. Some buy for its benefits, some because it is necessary. The fact that having a car insurance is beneficial in times of accidents is one of the main reasons for people to buy this insurance. However what is unknown to the mass is the role of a car insurance company, especially during the time of accidents or any mishaps. One ought to know the exact is effects of having an insurance or not have on the value of the claim. What all is covered by the car insurance? - are some of the things that one needs to know.

In the article below we have listed the role that a car insurance company plays in times of accidents.

Liability insurance:

When you purchase a car insurance from the car insurance company, the company offers you a standard insurance called the liability insurance. This insurance insures the drivers against claims if made against them in the future. These claims usually come up after car accidents that occur due to negligence or recklessness.

In such times, if a claim is made against the insured for Rs. 50000 and the policy has insured one up to Rs. 1,00,000 then the insured is not liable to pay anything, But, if the claim is more than what the car insurance allows, then the insured will have to pay the extra amount.

Helps uninsured drivers:

It often misunderstood how the uninsured driver's insurance functions. There are times when you may meet with an accident with a car whose driver is uninsured. In such cases, it hardly makes any sense to go hunting down the uninsured driver. What one can do instead is, make a claim against one’s car insurance company under the section of uninsured driver coverage. But, even as one claims this, one cannot claim anything beyond the limits of the uninsured driver cover that the insurance allows.

The underinsured driver coverage:

This insurance protects one against the drivers whose coverage limits is less than that what is required to cover the damages and injuries caused by an accident or an unfortunate event with the car. The underinsured driver coverage functions in a similar fashion as that of an uninsured driver. Meaning, the claim is made against one’s car insurance company. However, the only difference is, in an uninsured driver’s coverage, one has to make claim for the entire amount. But, in an underinsured driver coverage, one needs to make a claim for the exceeding amount that the underinsured driver coverage may not offer.

Limitations of both the covers:

The only drawback or limitation to both – uninsured and underinsured coverage is that one cannot exceed the amount of the general liability coverage one has. So as to say, if the general liability coverage offers a cover of 50000 rupees, then one cannot purchase uninsured or underinsured coverage for more than this amount.

Hence it won’t be wrong to say that the car insurance company plays a pivotal role, especially during the times of accidents and general mishaps. These companies aid one’s ability to obtain the funds that one needs to pay for accidents, damages, injuries, and other such mishaps that usually occur post a car accident.

About This Author

Shaheen Shaikh http://www.adrclinic.co.uk Joined: April 29th, 2018