Everything You Need To Know About Car Insurance

Car Insurance is understood as a safeguard provided to cars, with its primary purpose being financial security against any damages they could receive from accidents or other incidents. It may also provide insurance against theft or damage caused by natural disasters.

Types of car insurance:

  • Liability: This type of insurance pays for the third party’s expenses if needed after an accident.
  • Collision: This type of insurance covers the repair or replacement costs of the policyholder after getting into an accident, regardless of whose fault the accident is.
  • Comprehensive: This type of insurance covers the expenses incurred by damage caused to the policyholder’s car after an incident that is not an accident, i.e. natural disasters, etc.
  • Personal Injury Protection: This type of insurance covers all the medical expenses of the policyholder after an accident.
  • Medical Payments: This type of insurance covers only the direct medical expenses incurred by the policyholder after an accident.
  • Uninsured/ Underinsured Motorist: This type of insurance covers medical expenses and damage costs incurred after an accident with a driver who does not have the required or any insurance.

Benefits of car insurance:

Without car insurance, all costs of repair or replacement of the car will have to be paid out of our earnings. This could drain one’s finances quickly. By having car insurance, we will be able to enjoy the following benefits,

  • Damage/ loss to the personal vehicle: An insurance policy safeguards the car from burglary and damage from external factors among other things. Should your car be damaged in any way, you will be able to receive compensation or repair services.
  • Large network of garages: Some insurance companies have access to a variety of garages everywhere, which should provide you with a hassle-free experience if you visit them.
  • Third-party liabilities: Any damage or harm that is caused to a third party or their car will be covered for you by having car insurance.

As a car owner, you must be wise enough to choose a car insurance policy that minimizes the risks and it should be based on the type of car, location, frequency of usage, etc. Therefore, before buying insurance make sure you keep in mind all these factors, compare, and analyse all the policies and choose the one that suits your needs the best, as the popular adage goes, precaution is always better than cure.

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Robert Burns