Vehicle insurance (also known as motor vehicle insurance or car insurance) is insurance for cars, trucks, motorbikes, and other road vehicles. Its main use is to provide financial protection against physical damage or bodily injury caused by traffic collisions and on responsibilities that can also arise from incidents in vehicles.
Vehicle insurance can also offer financial protection against vehicle theft, and to damage to vehicles suffered from events other than traffic collisions, such as weather or natural disasters, and damage caused by collisions with immovable objects. Specific terms of vehicle insurance vary with legal regulations in each region.
What does the term “no claim discount” mean in vehicle insurance?
No claim discount is a discount given by an insurance company to its customers when the policy is extended if there are no claims in the previous year. The longer you become a customer of insurance without making a claim, the less risk the insurance company feels about your policy, and therefore the greater the discount. Each type of insurance policy (both third parties only, third parties including fire and theft risk, and fully comprehensive) can accumulate these discount clients.
On average, insurance companies will limit discounts that are allowed up to five years – which can still result in savings of up to 60%. Some may allow more, but the way this discount is calculated and at what point the calculation is applied can vary, leading to different results.
Only one no discount claim can be used per policy, so it is not possible to use a single discount and apply it to several cars. If you want to insure more than one car through the same insurance company, they can consider this.
When should I extend car insurance?
The date of renewal of your insurance policy is based on the date the policy starts. Another factor in determining your renewal date is the length of your policy period. Policies usually renew every year.
Extension information is usually sent or emailed to you 45 to 30 days before the extension. You will receive a declaration page along with other information that explains your policy policy. So ideally you extend your policy 30 days before the expiration date.
What premium do I have to pay for car insurance?
Your car insurance premium is the amount you pay to your insurance company regularly, often every month or every six months, instead of insurance coverage. After you pay your premium, your insurer will pay the coverage specified in the insurance policy. Each insurance company determines the rates differently, but your premium is usually based on details about you, the type of car you have, and the coverage you choose.