subject: Even Cheap Car Insurance Comes With A Warranty [print this page] Even Cheap Car Insurance Comes With A Warranty
There is absolutely no denying that life is expensive! Consequently most individuals will research options and rates until they find a cheap insurance quote to meet their needs and requirements.
On the subject of motor insurance, I am sure that the concept of a "warranty" on the insurance policy is enough to confuse a lot of individuals! Normally a warranty is there in order to safeguard the buyer of the product or the service, but in the case of car insurance, a warranty protects the seller (the insurance company).
When you purchase a new car, it usually incorporates a service plan or maintenance plan and some form of warranty. This warranty is normally valid for a certain time period and will cover the costs of repairing certain items which are not covered under the standard service or maintenance programs. For example, if your clutch system has to be fixed after one year and it can be established that it is not caused by driver error or neglect, this will not be covered by the maintenance plan, but by the warranty.
On the subject of insurance coverage though, the warranty protects the insurance provider. This warranty is a promise from the consumer's side to comply with a specific condition as set out in the insurance contract.
A promissory warranty is something that the insured party is instructed to do (or not to do). An insurance company can provide a client with a cheap insurance quote on the condition that the client fits a tracking system in his/her vehicle. The client then promises to do this, therefore the term promissory warranty. If the client fails to keep this promise, the insurance company is permitted to terminate the insurance agreement immediately.
A different type of a warranty is an affirmative warranty. At the end of each insurance contract you will have to state that you accept the terms and conditions as set out in the insurance document and that all the information that you have provided is 100% accurate.
Prior to getting too excited about the cheap insurance quote you have received, make absolutely sure that you are fully mindful of all the conditions and terms associated with this insurance policy.
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