Vehicle insurance

Its primary use is to provide financial protection against physical damage or bodily injury resulting from traffic collisions and against liability that could also arise from incidents in a vehicle.

This meant that injured victims would rarely get any compensation in a crash, and drivers often faced considerable costs for damage to their car and property.

[2] Germany enacted similar legislation in 1939 called the "Act on the Implementation of Compulsory Insurance for Motor Vehicle Owners".

This could address issues of uninsured motorists by providing additional options and also charge based on the distance driven, which could theoretically increase the efficiency of the insurance, through streamlined collection.

In Victoria, the Transport Accident Commission provides CTP through a levy in the vehicle registration fee, known as the TAC charge.

The amount of insurance contribution is determined by several criteria, like the region, the type of car or the personal way of driving.

[citation needed] The Road Traffic Act, 1933 requires all drivers of mechanically propelled vehicles in public places to have at least third-party insurance, or to have obtained exemption – generally by depositing a (large) sum of money to the High Court as a guarantee against claims.

The law 990/1969 requires that each motor vehicle or trailer standing or moving on a public road have third-party insurance (called RCA, Responsabilità civile per gli autoveicoli).

[citation needed] Each motor vehicle on a public road is required to have third party insurance (called Seguro de responsabilidad civil).

Victims of accidents caused by non-insured vehicles may be compensated by a Warranty Fund, which is covered by a fixed amount for each insurance premium.

DPWKLLJ was introduced in 1964 and merely covers body injuries, and is operated by a SOE called PT Jasa Raharja (Persero) [id].

[32] DPWKLLJ is included, through an annual premium called the Compulsory Donation to the Road Traffic Accident Fund (Indonesian: Sumbangan Wajib Dana Kecelakaan Lalu Lintas Jalan, SWDKLLJ),[33] in the annual vehicle tax which is paid to the local Samsat (Sistem Administrasi Manunggal di bawah Satu Atap), which is responsible for cars and roads.

[33] Auto insurance in India covers the loss of or damage caused to the automobile or its parts due to natural and man-made calamities.

Romanian law mandates Răspundere Auto Civilă, a motor-vehicle liability insurance for all vehicle owners to cover damages to third parties.

[citation needed] Policyholder's own vehicle damage such as fire, theft, and accidental collision is not covered under the third-party liability insurance policy.

An excess payment, also known as a deductible, is a fixed contribution that must be paid each time a car is repaired with the charges billed to an automotive insurance policy.

If one's car is declared to be a "write-off" (or "totaled"), then the insurance company will deduct the excess agreed on the policy from the settlement payment it makes to the owner.

[51] However, in some places, such as the UK, companies have used the standard practice of discrimination based on profession to still use gender as a factor, albeit indirectly.

[citation needed] Senior drivers are often eligible for retirement discounts, reflecting the lower average miles driven by this age group.

[citation needed] In most U.S. states, moving violations, including running red lights and speeding, assess points on a driver's driving record.

Since more points indicate an increased risk of future violations, insurance companies periodically review drivers' records, and may raise premiums accordingly.

[citation needed] Any motoring convictions should be disclosed to insurers, as the driver is assessed by risk from prior experiences while driving on the road.

Certain professions may be deemed more likely to result in damages if they regularly involve more travel or the carrying of expensive equipment or stock or if they are predominant either among women or among men.

Vehicles that can be classified as high performance autos will carry higher premiums generally because there is greater opportunity for risky driving behavior.

Risk classification on automobiles also takes into account the statistical analysis of reported theft, accidents, and mechanical malfunction on every given year, make, and model of auto.

However, as the Cents Per Mile Now website points out: As a practical matter, resetting odometers requires equipment plus expertise that makes stealing insurance risky and uneconomical.

Odometers have always served as the measuring device for resale value, rental and leasing charges, warranty limits, mechanical breakdown insurance, and cents-per-mile tax deductions or reimbursements for business or government travel.

Odometer tampering, detected during claim processing, voids the insurance and, under decades-old state and federal law, is punishable by heavy fines and jail.

In following years many policies (including Progressive) have been trialed and successfully introduced worldwide into what are referred to as Telematic Insurance.

Some companies will only offer mechanical breakdown insurance, which only covers repairs necessary when breakable parts need to be fixed or replaced.