Appearance of auto insurance

The first auto insurance policy was issued in the USA. In 1898 the Travelers Insurance Company has insured a auto for the first time. Now it is impossible to imagine the auto without an insurance policy on the roads of any civilized country.
Mr. Truman Martin became the first owner of the insured auto. He paid $12.25 for the auto insurance. And in the case of an accident he could get only $500. The price of the auto insurance policy was rather high. However, Mr. Truman’s wish to get the auto insurance policy was reasonable. The thing is that it was only 4000 people, who were able to buy a auto. Horses were the main kind of transport. They made a great danger for drivers, but auto insurance wasn’t widespread.

Situation concerning USA auto insurance changed at the 1920s, because Ford’s Conveyor opened. A number of the autos on the roads increased sharply and it was necessary to insure drivers against the emergency conditions. From this moment USA auto insurance became obligatory (not only voluntary insurance as some years ago).
Strong requirement to insure autos was officially introduced in the Massachusetts State in 1925. A short time later other states followed this example. Idea of the auto insurance aroused keen interest among the population. The auto was rather luxury, than usual transport, and nobody wanted to sustain damage.
After the example of the USA auto insurance was introduced in European countries. Thus in the fifties auto insurance became obligatory in Europe too.

Today most people have already known about different kinds of that insurance, USA auto insurance companies and can choose proper insurance scheme. There are several hundreds of the auto insurance companies at the auto insurance market. Every company offers different scheme. And you should choose suitable insurance company and conditions. A number of the questions usually appear exactly at this stage. Of course most of us are not professional at the USA auto insurance sphere. That’s why we decided to dedicate several articles to the theory of auto insurance.

Examples of insurance accident

In case of accident insurance the insurers agree to pay the defined sum to suffered person for arm or leg loss. The insurer’s right on producing the claims to guilty side can appear, for example, when the policy holder had damages, on which there are some bligations os insurer to compensate this loss according to insurance policy terms, but in the same time policy holder has the right to demand the compensation from the other person, as for civil liability in car insurance. The owner of such auto insurance policy can demand the damage compensation from his insurers in endamagement to other person based on the policy terms. If insurers pay this damage, than they will get the right to get the sums, which can be receved by policy owner from guilty side according to the common law.

Therefore in example auto insurance policy holders have the right to demand from the insurer to make action to the guilty side. Meanwhile, if the compensation will be received, it is subjected to paymanet for insurers. Maybe such event can occur, that policy holder has the right to claim to guilty side under some contract terms. For example, in insurance of the goods party, transported with motor transport in defined direction, policy holder has contract with goods carrier, according to which the carrier must take care of its safety. If there was theft after goods were left without proper care during the night, than policy holder can demand compensation of goods cost from insurers. They’ll pay. Then they can demand to claim to the carrier for breach of contract and sums,got from the carrier, are repayble to insurers.

Insurance arrangements and guarantees

Insurance arrangements mean insurance policy owner’s duty to tell only truthful facts. Thus, during factory insurance from the fire or other dangers there can be pointed the following: “It is guaranteed, that on its territory there won’t be dangerously explosive materials.”

Guarantee presence in the insurance policy assumes, that insurance owner must strictly follow them. If the guarantees aren’t observed, policy owner will have privilege to remove all responibility according to insurance policy. For example, if insured plant suffered from the flood and insurance policy owner declared the loss acording to the policy terms, but it would be determined by the insurers that there was dynamite, they would able to take off any responsibility following from the insurance policy terms, though the damage from the flood has nothing common with the fact of dynamite keeping.

Insurance policy owner’s duties as to obsrevnce of the highest principle honesty. Policy holder always knows much more about the property or other insurance objects, than insurer. Something that policy holder knows, can be turned out very important for insurer when solving some questions, connected with insurance. Insurer will insure rather driver that has no violations of the driving rules, than the one , which has it many.

American laws put on the preson, that wishes to insure, the duty before making of auto insurance contract to tell insurer all necessary for decision-making facts, connected with possibility to make insurance on certain conditions. These facts are called the facts, that have material meaning. In connection with this almost in all kinds of auto insurance you need insurance application. It is prepared by the insurer and contains the list of the questions, which must be answered by potential auto insurance policy owner. HE must give truthful answers and sign insurance application.

Insurance policy classification

Classification of insurance policy terms assumes: express terms - the conditions,that are contained in the insurance policy (for example, damages must be payed during 7 days after insured accident became) and implied terms - the terms, that aren’t in the insurance policy, but they are refered to insurance contract by act of the common law (for eaxample, policy owner and insurer are obliged to follow the highest principles of honesty).

Usually, express terms are the description of the risk, from which the insurance is covered, the period of the insurance coverage, the possible sum, on which the object is insured, insurers’ deliverance from the responsibility by appropriate circumstances.

In the insurance policy there are liabilities of either policy owner or insurer. For example , in the auto insurance policy for house property it can be specified : the loss or damaging of some house property, that have happened as a result of some accident(unexpected developments). In other express term it can be specified that the property, found in house is house property and some personal things. The accident can be fire, lightning stroke, explosion, hurricane, earthquake, flood, water leak, theft.

Auto insurance policy can contain some exceptions. For instance, from all house property pets and cars are excepted. From concept of “accident” such exceptions are disorders, strikes, floor convergence, on which house stands. In the insurance policy there can be something like that: “This auto insurance policy doesn’t include damage, loss or destruction of the property, if it had happened as a result of the war, invasion, civil war.”

Among the policy owner’s duties there is such express term: “The police has to be informed about loss accident or damage of the property after the theft.”

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