Due to the nature and dynamics of the car industry, it is faced with massive risks especially due to accidents which may occur at any time. Statistics indicate that the automobile industries faces the most number of accidents and property loss as compared to other sectors that other insurance policy covers, Laws in almost all countries forbid the driving of automobile without necessary insurance policy cover. Vehicle owners are faced by a big problem when it comes to the choice an insurance policy. Hasty policy buying often lead to wrong choices and huge loses are incurred by the insured person.
According to (Malcolm 78), the first and the most important factor is the cost of the insurance cover, most insurance companies offer differing rate for a given policy. Before buying an insurance cover there is need for critical evaluation of the price. This can be done through requesting several companies to send their price quote for each car insurance cover. Cheap insurance premiums can be very deceptive, it is important that the car asks for and reads the whole insurance policy document before settling on the insurance cover policy. There are different insurance packages each covering a different set of individual protection. Some of these include; Third Party Insurance; which is a very cheap cover and protects the insured from third party risks e.g. fire and car theft. Body Injury; which pays up to certain coverage limit, injury and death to the people with the operator of the car at the time of the risk. Defense costs; which are incurred during the law suit are also covered. Property Damage; which pays up to a given coverage limit for the other vehicles involved in an accident in which you are legally responsible for the accident. Medical Expenses; pays for all hospital bill, doctors and funeral expenses to those injured in accidents. Uninsured And Underinsured covers all pain and suffering that are not covered by the medical cover. Collision Coverage ; covers damage for the vehicle up to a given limit, Compressive Cover; full policy that pays for up to a given specified amount for vehicle damage, vehicle loss and damage due to theft, floods, fire, vandalism, hail. It covers for all expenses regardless whose fault it was. It's a general requirement for those with car loans. Rental Reimbursements; pay up to a given specified limit, the charges for rental services when your vehicle is being repaired. Labour and towing (breakdown cover), covers for charges incurred in transporting a damaged vehicle to the garage. Delivery of oil battery and other accessories are covered but their actual costs aren't included (Sternberg 143) the payment method is another vital consideration which is dictated by the amount of money at hand during a given duration (Vaughan 241). Depending on the vehicle owner cash inflows, he can decide to pay insurance premiums yearly or the policy can be paid in monthly installment. Monthly installments are preferred by many but are more expensive as there in a small additional cost charged because of paying over a period (Rogers 133)
Another very important factor is where the car owner lives, with the advancement of technology, insurance covers are availed online, it is however important to