Motor Insurance originated in UK, where first motor policy was introduced into England in 1894 to cover third party liability in 1899, the policy was extended to cover the accidental damages similar to what is known as comprehensive policy today.
In the present times it is mandatory to get a car insurance before driving on public road in most of the countries. The penalties for not purchasing car insurance vary from country to country but most of them involve a fine, suspension or revocation of the license and in some cases even imprisonment.
The car insurance can cover:
- The Insurer
- The Vehicle
- The Third Party.
Of the three, the third party insurance is mandatory in most of the countries and is often deducted as a part of license (as in South Australia) or as percentage of money from petrol goes towards the road accident fund to compensate the third part (as in South Africa).
Car Drivers in UK are required to display vehicle excise duty disc when they are driving the car on public highway this ensures that they are fairly covered by an insurance policy. Multinational car insurance companies have accordingly tailored their policies to suit the laws of the countries.
Car insurance companies worldwide are witnessing changes in the mode of operation. In the past 68% of personal auto insurance market was written by direct writers as opposed to insurers that primarily rely on independent agents & brokers. But the trend is now changing world over.
The consumers prefer to research and purchase insurance online after comparing and contrasting the insurance quotes of several companies. The online shopping of the insurance gives them the advantage of seeking knowledge and choosing from the gamut of varieties available.
Most of the market research agencies have found that there is a stark rise in seeking information about the various benefits offered by the insurance companies, finding the benefits offered and also purchasing the insurance. (Research agencies have reported that almost 87% of the customers scan various insurance agencies and 58% purchase their car insurance online). The popularity of online purchase of car insurance is due to easy availability of information and time saving, cost effective convenient.
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