Financial & Travel Musings

Although nearly everyone has it, auto insurance is probably one of the least understood types of insurance around.

However, most of us only come across the less understood areas of this insurance rarely. For example, do you actually know what would happen if you wrote off your car? You might assume that, of course, it would mean that you’d get a new car and that they’d pay for a rental car until the new car arrived. Not so. What normally happens is that they’ll pay for a car equivalent to what your car was which means that if your car was three years old then they’ll pay out the value of a three year old version of your car. Similarly, there are quite short limits on how long they’ll pay for a rental car.

If you’ve imported the car yourself you’ll come across the problem that many insurers will only insure models of cars that were sold in your country. So, in our case we’ve a diesel model of a car for which only petrol models were on sale where we’re moving then we’ve a problem getting insurance.

You can find out a lot of this information if you read your policy document, but then who bothers to do that?

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This entry was posted on Friday, January 9th, 2009 at 5:15 pm and is filed under Insurance, Miscellaneous. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.