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Introduction to Car Insurance
A
car insurance is an extremely important fragment i the insurance
industry as it protects you, the owner, your car and other road users
from the liability that may be fall. It aims at providing financial
compensation arising from such unforeseen events. It is required by
law in most parts of the world for a car to be covered by an
insurance.
In the event that you are found to be at fault in an
accident, a liability coverage ensures that the insurer pays for the
damage caused to another person’s property and/or injuries suffered
as a result. The two broad classifications of car insurance are third
party insurance and comprehensive insurance. Third party insurance
may be the cheapest option and covers what may be said to be a bare
minimum.
This will cover damage to the other party as well. Your own
passenger will also be covered under this insurance type. However, if
found liable for the accident, you will not be covered in terms of
medical liability and you will have to cover the costs of your
vehicle repairs. Further, the third party insurance does not cover
any liability arising from theft of the motor vehicle. On the other
hand, a comprehensive car insurance can be said to offer a wide range
of protection among the other car insurance policy arrangements. In
addition to the third party compensations discussed earlier, the
comprehensive cover will cater for your own vehicle’s repair as
well as accident happened due to your own fault.
The downside to the
comprehensive insurance is that it will cost more in terms of
premiums as opposed to the third party cover. It is however, very
important before signing up for either the type of cover to discuss
thoroughly with the insurance company or agent on what is offered
because the little details would vary from cover to cover, company to
company or agent to agent. It is also very paramount to find out if
some risks will be covered before making a decision to avoid a
situation where a claim will be made only to be notified that the
particular risk was not covered in the policy. Common risks not
covered include civil unrest and natural calamities like floods and
hurricane.
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