Definition of car insurance

This insurance is intended to protect the car owned by the insured against risks such as: collision, total theft, injuries to occupants and damages to third parties in their person and their property in case of vehicular accidents. Usually these insurance are handled by packages, which include different coverages that will be contracted at the client's will, such as:
Total theft of the car.- Protects it in case of total theft of the vehicle.

Civil Responsibility.- Covers the liability that may be incurred by the owner or any person who, with his authorization, uses the vehicle for material damages caused to third parties in their property, personal injury or death to third parties and compensation for moral damages that are legally determined . Also covered are the expenses that the insured had to pay in the event of a civil trial against him for civil liability.

Medical expenses.- Provide for the payment of medical expenses for bodily injuries of the insured or the other occupants of the vehicle, in traffic accidents occurred while they are inside the compartment, house or cabin intended to carry people.

Legal defense and counseling.- The company offers professional services of lawyers in case of accident or total theft of the car, to process the freedom of the insured to the corresponding authorities, as well as the return of the injured vehicle. Provides legal protection services, processes the insured's parole during the trial, releases the vehicle, processes the necessary bail bonds and makes payments of expenses except administrative fines.

Damage to property - Covers damages or material losses suffered by the vehicle as a result of circumstances that are not excluded in the policy.

Risks that are not hired in auto insurance

There are risks that are not covered in the contracted insurance so it is very important to review the policy to verify the situations in which the Insurance Company will not pay the damages. Among the most common causes of non-payment are:

1: When the driver has no license or driving license, if this situation directly influences the performance of the accident or risk.

2: For breakage, mechanical decomposition or lack of resistance of parts, unless these are caused by the risks that are covered by the policy.

3:Loss or  damage to the lower part of the vehicle due to off-road or poor roads.

4: If the driver is in a state of intoxication or under the influence of drugs when these situations directly influence the accident that caused the damage.

Note:
It is important for you to know that the risks that are covered are described in the policy that has been given by your insurer, which specifies the assets that are protected by your insurance, the risks covered and the amounts insured for those assets. It also stipulates assets that are not covered and additional risks that may be subject to additional coverage if you wish, but these should be specified at the time of insurance.

When for any reason you request a change in the conditions of your insurance policy, the insurer must provide you with a document called an endorsement stating such modifications to make them valid.

It is important that you avoid the omission or false statement of facts that you make regarding the risk to be insured, otherwise it may result in termination of the contract and therefore loss of the right to receive compensation.

Compensations that are covered in case of applying for car insurance

• In case of loss the compensation will be paid at the commercial value of the protected asset, unless you have contracted a policy at replacement value.

• The payment of your car in case of theft or total loss will be made based on its commercial value, that is, the payment contemplates the depreciation of the same according to the books that the insurers handle for these effects.

• In order for the company to process payment and / or repair due to damages, you must provide all documentation and information that it requires, or failing that, carry out the necessary procedures for the replacement of such documents, since without them they will not be able to deliver the respective indemnification.

Term of validity for auto insurance

The term of the policies is the time during which the insurer recognizes its responsibility to cover in some proportion the expenses incurred by you, arising from an accident. The period of validity may vary from annual, semiannual, quarterly, etc.

Term for the payment of your insurance policy

Each of the Insurance Companies may offer different terms for the payment of the policies, although the term types are usually annual, semi-annual, quarterly or monthly. It should be noted that if you choose an annual payment method you will only pay the cost of the insurance in a single exhibition, but if you choose a different one such as the semiannual, quarterly payment, etc., the insurer will include within the insurance price an amount extra as financing cost.

As soon as you contract your car insurance regardless of the form of payment you have chosen (annual, semiannual, quarterly, etc.) according to the law you have 30 days to make the payment of your policy, as well as to make any clarification in the content of the same. Once this period has expired, if you have not paid the insurance to the insurance company, the insurance company can cancel your policy and your car will not be protected.

It is also important that you know that every time the term of your policy expires, and once you have informed your insurer through your insurance agent, your desire to renew it, will have the term of 30 days indicated in the previous paragraph.

Most insurers offer auto insurance plans, so it is important that before deciding on any, contact the different insurance agents of those companies to make a budget based on the insurance you need and that best suits your needs. With all this you will be able to choose the insurance plan that best suits your budget and your needs.

Elements that make up auto insurance

1. The contractor: Is the person who pays for the services of an insurer.
2. The beneficiary: Is the person who enjoys the services offered by the insurer.
3. The insurer: The company that will offer the services in the event of an accident.

More information to take into account, in case of hiring car insurance

• In the insurance sector, each of the insurance institutions offers various insurance and coverage to the public, which include different costs, premiums, deductibles, co-insurance, terms and even applicable additional benefits, so before deciding on any insurance company in particular, it is advisable to evaluate the set of variables that they offer and are better suited to the specific needs of each interested party to take out some insurance.
• The auto insurance policy or contract is specifically designed to protect the material asset (automobile). Depending on the type of coverage you acquire.
• Any natural or legal person can take out insurance against damages, taking into account that the insurance company only responds for the damage caused, up to the amount of the limit of the amount and value insured.
• The insurance contract or policy is that proof of insurance where conditions such as insured sum, costs and other obligations of both parties are specified.
• Do not sign any documents without reading them.
• Ask any questions you have.
• Also, do not sign or pay your policy if you do not agree with the terms of the policy.

In which cases the insurer does not grant the benefits of the auto insurance policy

It should be noted that the vehicle is the insured, and the benefits granted by the insurer in case of an accident do not depend on the person driving the insured vehicle, except in cases such as the following:

1. That the driver is in a state of intoxication or under the influence of drugs.
2. That the driver drives the vehicle without the permission of the contractor.
3. Do not bring a license or driving license.
4. Not having the required documents, such as circulation card.
5. Failure to pay your policy in a timely manner, or not to have paid the renewal within the thirty days corresponding to the expiration of the previous policy.

Recommendations by insurers in case of an accident

1.Save calmness.
2. Do not enter into any agreement with the parties involved.
3. Not discussing or accepting responsibilities.
4.No order repair of the vehicles without the express authorization of the adjuster or the insurer.
5. Identify the vehicles with their numbers of plates and if possible name and address of the drivers.
6. Do not abandon the unit, except for reasons of force majeure.
7. Report the accident to the insurer.

What data you should have on hand in case of an accident

The data that must be at hand when an accident occurs are:
1. Number of insurance policy.
2. Name of the insured and name of the driver.
3. Make, model, license plates and engine serial number, of the insured vehicle.
4. If possible, the exact place of the accident indicating street, colony and some reference that allows its more prompt location.

Note: In most cases the coverage you purchase covers the entire national territory, however there are cases in which it also protects you abroad, for which you must confirm with the insurance institution the scope of the policy that you acquired or is to be acquired.