Adverse selection is a phenomenon wherein the insurer is confronted with the probability of loss due to risk not factored in at the time of sale. This occurs in the event of an asymmetrical flow of information between the insurer and the insured. Description: Adverse selection occurs when the insured deliberately hides certain pertinent information from the insurer. The information may be of crit
No. Third-Party Car Insurance is obligatory for all motor vehicles. Third party risk insurance is compulsory under the statute of the Indian Motor Vehicles Act, 1988. You may be a good driver, but it does not negate the fact, that the vehicle you drive can become the victim of a disaster that was caused by another vehicle. In such a situation, you will be grateful that the driver involved has a third-party car insurance cover that you can raise a claim on.
To calculate the added cost in purchasing comprehensive and/or collision coverage we looked at annual insurance quotes for a 30 year old male from New York across four different insurance companies, and the ten best-selling vehicles in the US. We look at the range of rates you could pay from basic liability to policy plans with comprehensive and collision coverage. Collision typically costs more than comprehensive, although some companies require you to carry both rather than just one. Comparing quotes across at least three companies can get you lower car insurance rates.
When you purchase comprehensive coverage, you will select a set deductible, which is the amount you pay out of pocket toward a covered claim. Let's say you choose a $500 deductible, and your car is later damaged by hail in a covered claim. If it costs $1,500 to repair your car, you would pay your $500 deductible, and your insurance would pay the remaining $1,000.