An introduction to Auto Insurances
An auto insurance policy covers the risk of loss of income, property or personal injury caused by an automobile accident. A standard premium for a single person can be about $500 per year, with multi-person policies being more expensive. Most people have a way to raise the money to cover their premiums, such as by taking out loans or drawing from retirement accounts. Insurance companies note that rates may depend on various factors including location and driving record. In some countries, owning multiple cars may come with restrictions as well as specific insurance policies which are designed to reduce the risk of theft and vandalism against each car in particular. In the case of multiple cars, one car may be insured separately, while for example another would be taken into account in calculating the total insurance policy.
There are many types of motor vehicle insurance policies available. While the type of insurance varies from country to country, auto insurances policies are generally divided in three main categories: personal accident cover, medical cover, and comprehensive cover.
The term "personal accident cover" is used to describe coverage for injuries or death resulting from something that was not caused by alcohol or drugs. However, in some jurisdictions it also includes coverage for accidental death and dismemberment if a person is injured by a dog or vandalism. Personal accident coverage may be optional in some jurisdictions.
"Medical cover" is the term used to describe coverage that pays for injuries or death resulting from an accident. Medical insurance will pay for the costs of treatment, rehabilitation, and other related expenses incurred by a person as a result of an automobile accident. It typically covers a limited period of time, with benefits sometimes being extended if there is still an ongoing need for treatment. Some jurisdictions require every driver to purchase some form of medical payment protection (often called "medPay" for "medical payment"). This ensures that medical cover is in place regardless of any medical conditions or prior claims history. It is usually paid for by a monthly premium.
"Comprehensive cover" means coverage for damages to a vehicle or passengers as a result of an accident. While comprehensive cover is typically required in all motor vehicle insurance policies, it may also be optional in some jurisdictions.
In many other jurisdictions, the minimum amount of insurance that must be purchased to legally drive a vehicle varies by jurisdiction. This is dependent on the type of automobile and the laws of each country. In most cases, it does not include any type of medical payments protection, also known as "Med Pay". In addition, if one's car is stolen, the cost can be quite expensive if it is not insured. In many jurisdictions, if one is stopped by a police officer and found to be driving without proof of insurance, the driver will be fined. This amount can range from several hundred dollars to thousands of dollars. In addition, if one does not carry the proper proof of insurance for the jurisdiction in question, their car may even be impounded for a period of time until proper documentation is provided.
In France, Italy and some other countries, it is compulsory to carry a certain level of third party personal injury cover only: that cover does not apply however to property damage (see "Carrying insurance for vehicles that are not owned") and/or third party cover for property damage (just called "comprehensive").
In the United States, where mandatory coverage is not entirely uncommon, it is even more common for individuals to carry excess liability insurance against the possibility of being sued. The amount of excess that one carries is usually based on a standard formula when buying car insurance or can be calculated from information in one's application for a driving record.
In many jurisdictions, such as England and the Australian state of New South Wales, it is compulsory to purchase a minimum level of third party cover (sometimes termed "uninsured motorist" cover) which covers liability arising from an accident with another vehicle or pedestrian (see "Uninsured motorists' insurance") , without any extra cost for the driver. In Australia, the minimum amount of "uninsured motorists' insurance" which must be purchased is based on a standard formula when buying car insurance. The amount of "uninsured motorists' insurance" that one carries is usually calculated from information in one's application for a driving record.
In the US, most automobile insurers will not write a policy for two-wheeled vehicles such as motorcycles and mopeds. They may cover these vehicles on an ancillary basis if one brings their own coverage to the table.
An active police driving warrant will disqualify a motorist from being covered by his or her insurance company, even if the company has no knowledge of the warrant. This is because the insurer will not insure people who have been involved in an accident, as they will be considered at risk of committing a further offense. Police officers can be obliged to apply for an on-the-spot ticket for moving traffic offences such as speeding, and their vehicle registration plates are always checked by the police. Also, police drivers must report being involved in certain types of accidents.
In some jurisdictions, spare car keys are used to provide additional keys to other individuals when approaching a locked car. Some car keys can be produced by the owner of a vehicle, and the corresponding immobilizer systems do not prevent their use. Therefore, if an individual has access to another person's spare car key and obtains a copy of it (or makes a copy), they can use that spare car key to steal or drive that vehicle. This is a very serious problem in many countries, especially for those cars with mechanical locks (where the key must be inserted into the lock). In these countries, some companies and organisations produce immobilizers which disable the use of spare car keys. For example, in Europe all Renault Twingo models equipped with mechanical locks were manufactured with an immobilizer system which prevents their use.
Many vehicles have additional security features such as electronic immobilizers which prevent a car from being started or driven if it is not authorized to do so. These systems are becoming increasingly sophisticated, and some manufacturers of cars that are equipped with them make the manufacturer's electronic key fob available for their customers to use in place of the standard key they provided to the dealer at the time of purchase. In many countries, these fobs can only be used if the vehicle has already been started using the owner's actual key. This additional security is intended as an extra measure against theft of a car's keys, in addition to any other measures taken by the carmaker or dealer.
In some countries, the above methods are not used. In those countries, theft of the key will necessitate that the vehicle's lock be replaced, and while this is often an expensive process (due to the time involved in having a locksmith make a new one, as well as having to have the car towed to an automotive locksmith), it has been estimated by many experts that stolen keys are responsible for between 90% and 95% of vehicle thefts.
The cost of spare keys can vary. In some cases spare keys can be made by anyone who has access to a key duplicator machine.
Conclusion
There are a number of things that car owners should consider before deciding whether or not they need a spare key for their vehicle. First of all, it should be noted that the costs and inconvenience of having a spare key can range from several dollars to tens or even hundreds of dollars in some cases. In addition, anyone who chooses to have a spare key should also consider whether they wish to purchase insurance (even if they have adequate coverage to cover property damage) or not, as well as the possibility that the vehicle may be stolen and their empty key fob used to steal another vehicle (or in some cases the individual could be arrested for driving without insurance).