Car insurance is usually a legal obligation for motorists in most countries because accidents often happen and you can’t be too careful on the road. Apart from being compelled by the law any sane driver or car owner knows that the benefits outweigh the demerits. So let’s take a look at what a car insurance is, reasons for getting one and the various types of motor vehicle covers that are available in the market.
A car insurance or an automobile insurance is an agreement or a contract between the car owner and the insurance company of his choice regarding the safeguarding of the driver against any financial damage or physical injury that may arise due to an accident or robbery. The insurance cover is calculated according to the premium paid in reference to the policy.
The Importance of Car insurance
The first and the most common reason for getting an insurance cover for your vehicle is that the law demands it, you are required by law to own one. Most drivers usually forget to pay for it especially when you’ve taken so long without driving your vehicle until one day a traffic police stops you and then you remember but by then it’s too late.
Types of Auto insurance
A third party insurance in most countries is mandatory for all cars. This covers you from any loss or injury pertaining to the other vehicle that you may have damaged, but it doesn’t cover you or your car. Regardless of who caused the accident a good insurance policy will cover any passenger in both the cars involved in an accident, cover their medical bills or their injuries. While a third party covers the other car it will also cover the passengers in your car.
Another type of cover known as a collision cover or a personal injury cover will take care of the damage costs no matter who is to blame. Insurance doesn’t cover only accidents but also natural disasters such as a storm, fire or floods where no human error could have caused it or even foresee. This is where a comprehensive insurance comes in handy. On top of covering damages caused by natural acts of God it will cover you from vandalism, car theft and even theft of items stored in your car. This cover is the best especially when its either a brand new vehicle or you keep a lot of expensive equipment in your car.
Insurance usually helps drivers negotiate with the other car owners, thereby reducing the workload and stress of the whole process. This will give you a peace of mind in any event helping you not to deviate from your normal business routine and also lets you drive free of any worries or concerns about what may happen. The cover will also be of good help where the health insurance does not cover, and will greatly reduce the medical bill. An insurance cover is also helpful when a single car is driven by different drivers for example a company or family car, as it will cover whoever is driving at the time of accident.
In conclusion, for your own or other passengers protection you should get a good insurance cover from a good company. It is best to have it and not need it rather than need it and not have it.