Not everyone has easy vehicle like a car, many people have bought cars on credit because of limited funding. To avoid such unwanted cars lost, damaged or crashed because it was hit by another vehicle, or caused by natural disasters such as floods, earthquakes, fires, etc., are obviously very necessary vehicle insurance. Better to buy insurance protection compared to the cost of repairs to the garage when the vehicle is damaged or installment road vehicle while the vehicle kept missing / lost.Definition of insurance. According Prof.Mehr and Cammack:
"Insurance is a tool to reduce financial risk, by way of collecting exposure units in sufficient quantity, to make the individual losses can be estimated. Then it was predictable losses borne equally by those who are members."
Definition of insurance. by Prof.Mark R. Green:
"Insurance is an economic institution which aims to reduce risk, by combining the management of a number of objects in a large enough amount, so that the overall losses can be predicted within certain limits."
Definition of insurance. by C. Arthur Williams Jr. and Richard M. Heins, which defines the insurance on the basis of two viewpoints, namely:
a. "Insurance is a protection against financial loss by an insurer."
b. "Insurance is an agreement by which two or more persons or entities to raise money to overcome financial losses."
Based on these definitions above presumably on the definition of insurance that can cover all angles of view:
"Insurance is a means to reduce the inherent risks in the economy, by combining a number of units exposed to risk in the same or nearly the same, in large enough quantities, so that the probability of loss is predictable and if the predicted loss occurs will be divided proportionately by all parties to the joint. "
Insurance function:
1. Risk Transfer
By paying a relatively small premium, a person or company can remove the uncertainty over life and property (risk) to the insurance company
2. Collection Fund
Premiums earned and collected by the insurance company as a fund to pay for the risk incurred.
:: CHOOSE CAR INSURANCE::
A growing number of car insurance products offered. Therefore, the principle carefully before buying, it should be applied, so no regrets in the future. Before deciding to select one of several car insurance products offered:
1. Determine the type of insurance coverage desired. Overall protection (All Risk) to give the best protection, but you need to take into account the economic side.
2. Do not be fixated on the size of the premium to be paid. View the credibility of these companies, especially in terms of service, claims handling and financial capacity.
3. Many insurance companies are credible and bona fide, though without the support of re-insurance company. But there's no harm in finding out the track record of re-insurance company (if any).
4. Does the company provide additional benefits, such as 24-hour claim service, free towing, guaranteed 24-hour claims processing, etc.?
5. It is better you see the company's partner shop network. How much, where its location and how the quality of these workshops.
6. Understand the correct anything what your rights and obligations. What should you do and what not. Are there any exceptions in the policy contract, what luck you have to lose?
(Excerpted from multiple sources)