Car insurance contract: is it advantageous for whom?

The driver, his vehicle and his family are extensively protected after signing a car insurance contract. Understand what it is and how it works.

After purchasing a vehicle, the next step to take is taking out insurance. Because, it will be through it that the driver will have a guarantee that his car, as well as his family, will be protected by the law if any eventuality happens.

Therefore, you need to understand a little about how the car insurance contract works, so that everything can be in accordance with the laws, avoiding future headaches.

Before signing any agreement, you need to do a lot of research into which insurance companies are the best. Always see the opinions of other customers, examine each contract, the values ​​and what each company is willing to offer you.

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Car insurance contract: what is it?

When signing an agreement, the insurer must receive premiums, whether in installments or cash value, to insure another person's valuable object.

In cases where your object has been lost or stolen, the insurance company from which you contracted the services must try to reverse the damage suffered by you, so that you are not left at a loss.

Therefore, a car insurance contract basically serves to protect your car against some fatalities. However, there is no effective list of items that the insurer should cover. Therefore, it is important to research before signing any agreement.

According to the Civil Code, as shown in article number 757: “Art. 757. Under the insurance contract, the insurer undertakes, upon payment of the premium, to guarantee the legitimate interest of the insured, relating to the person or thing, against predetermined risks”.

Both the service contractor and the contractor are covered by the law. Therefore, although many people are afraid to pay for insurance, it is necessary to know that the aim is always to ensure that your assets are protected in the best possible way.

Coverage offered by the insurer

It is worth mentioning that each insurance company has its own pre-formulated contract. This way, a person will not be doing wrong when researching and comparing values ​​and benefits between companies.

Immediately after choosing the insurance company, carefully analyze the policy, that is, the terms present in the car insurance contract, which describe the established rules that benefit both parties after signing.

In this case, it is recommended that the client hire a broker, to avoid possible mistakes or doubts regarding the terms proposed by the contractor.

The more benefits an insurer offers, the more advantageous it will be for the vehicle owner. Check below a list of the main coverages offered by insurance companies:

• 24-hour assistance;
• Backup car;
• Accidents (crashes, rollover or skid;
• Assault (robbery);
• Natural causes (hurricane, earthquake, lightning, windstorm, hail or meteors);
• Extra protection for glass items (windows, flashlight, headlight and windshield);
• Car shielding.

Just as it is extremely important and in the contractor's interest to know which causes the insurance should cover, it is necessary to know what was left out of the contract. This prevents the insurance company from being called and then being unable to help you.

Therefore, the policy must be read and re-read several times, to understand in the smallest details, which services you are paying for. If there is some coverage that you want, but that the company does not offer, it can be added to the contract.

Therefore, try to make a contract that covers all, or most, of your needs. At this crucial time, the help of a professional in the field is essential. Because you will not always understand everything that is written in the contract clearly.

How long does the contract last?

In general, companies close contracts based on a 1-year duration, and it is the customer's choice to decide whether or not to continue with the services after this period.

The length of service offered is a crucial factor when concluding the agreement, as it will be from that day onwards that the driver and his vehicle will begin to enjoy the benefits arising from the conclusion of the contract.

Always keep in mind the date on which your contract will expire, because, if an accident occurs or you need to contact the contracted company, they will be unable to do absolutely anything for you, since the services are temporarily unavailable, requiring a renewal of the contract to so that the driver and his vehicle can once again enjoy all the benefits he is paying for.

Therefore, having a car insurance contract is very important, as it offers additional protection for the vehicle, as well as for the driver and third parties who are inside the car during any unforeseen event.