Auto Insurance is an insurance purchased for vehicles such as cars, buses, trucks, motorcycles, caravan, trailer etc.

The objective of the Auto Insurance is to provide protected against the losses as a result of accidents as well as damages caused by the said vehicle.

It is compulsory for vehicles to have an auto insurance before it can be used on the public road.

Auto Insurance is fixed term and usually renewable yearly.

Before buy an Auto Insurance, you need to understand the following terms:

1)     Premium: The amount of money paid to insurance company in return for a protection.

2)     Sum of Insured:  The amount of money compensate by the Insurance company should an accident happened to the vehicle.

3)     Excess Payment: A fixed amount that you had to pay if a claim made to the insurance company. The excess payment act as a deterrent for policy holder to make insurance claim for small amount of money.

What determines the Insurance Premium Rate?

The factors determine an Auto Insurance Premium are :

1)     Sum of Insured: The higher the amount of insured, the higher the premium paid.

2)     Age of the Drive :  The younger the drive, the higher the premium

3)     Gender: In certain country, female enjoy lower premium.