VEHICLE INSURANCE

VEHICLE INSURANCE

Abstract

          Vehicle insurance provides financial cover against damage caused to an insured automobile that occurs due to an accident, fire or theft. It also covers financial liability against damage caused to another person's property in the event of an accident.

           Nearly every country lays down specific rules to regulate vehicle insurance within its purview. The personal driving record, type and age of the vehicle, mileage and the area are the usual factors that determine policy premium. The extent of auto insurance cover also governs the premium amount.

Project description

Categories of Vehicle Insurance

                   Vehicle insurance can be divided into three broad categories on the basis of the cover.

Third Party Vehicle Insurance:

          Most countries require third party insurance by law. Many states have a specified minimum limit for third party insurance. It pays for the loss that occurred upon another person's property. This applies in case of an accident in which the insured vehicle is deemed responsible. It protects the policyholder against financial liability towards the affected party.

          Third party insurance can be further divided into physical damage liability insurance and bodily injury liability insurance. Physical damage liability insurance pays for the repair of the damaged third party vehicle. Meanwhile, bodily injury liability insurance covers the medical expenses incurred by the third-party due to an accident.

Collision Vehicle Insurance:

          This type of vehicle insurance covers damage to the insured vehicle in case of an accident. In this type of insurance, the term 'accident' refers to collision with another car or an object resulting in loss of control leading to total damage. Collision policy comes with a deductible, which is the amount that an individual has to pay beforehand itself. Apart from the legally mandatory third party insurance, collision cover is also essential to avert financial damages.

Comprehensive Vehicle Insurance:

          This policy provides cover against damage caused to the insured vehicle besides an accident. It includes theft, fire, vandalism and hails. A high-end comprehensive cover includes periodical repairs, guarantee on vehicle parts and vehicle's physical enhancement.

          The key to buying a cost-effective auto insurance cover is to understand the coverage one requires. The best way to start understanding this is to compare vehicle insurance quotes of different companies and buy the very best coverage accordingly.

SYSTEM ANALYSIS

Existing system

          Instead of going to my insurance agent’s or broker’s office in person, I want to apply for and potentially purchase automobile insurance online by using the E Buy web site. I have made this decision to apply for and potentially purchase insurance using the E Buy website at my sole discretion and I have not been influenced by the agent or broker or its representatives in making this choice

           In order to apply for insurance on line, instead of reviewing printed disclosures, applications, agreements and signing my name to pieces of paper, I will be reading those disclosures, applications and agreements on the EBuy website and clicking on buttons that say "Accept" or "I Agree." Every time I click on a button that says "Accept" or "I Agree," I intend that click to be my "electronic signature" and to have the same effect as if I had actually handwritten my signature on a piece of paper.

           I understand that in order to initiate future changes to my policy I may be required to submit a written request with my actual signature

proposed system

          Airbag system fraud is a public safety concern for consumers and the automobile insurance system.

          Efforts to combat this problem one that could place innocent consumers at risk of serious bodily injuries have been piecemeal.

           This model is intended to address the issue in a coordinated way. It is through this collective effort that consumers will be protected and the integrity of the insurance restraint system assured.

          Progressive was the first major auto insurance company to launch its own website in 1995. Since then, it has continued to roll with technology changes, and today, an individual can shop for comparison rates, buy a policy online in real time, manage their policy, talk to customer service, and report a claim – all online,