Almost everyone has a car these days and hence owning cheap car insurance is a must. The number, as well as the frequency of accidents, has increased highly these days. In most of the countries only because of this reason it is mandatory to own a car insurance if you own a car. In other words, ensuring your car is the basic requirement as well as the basic law.
The car insurance protects the driver against being caught driving without insurance and covers him all the injuries he would get if in case the car meets with an accident. It would also help you in paying the compensation to the one you have hit while driving. In short, there are three different types of vehicle insurance:
Third party insurance: This option is the most basic car insurance option, providing cover in the event of damage to a third-party vehicle. With third-party insurance, you are not covered for damage to yourself or your vehicle.
The third party, fire and theft insurance: The next option is the third party, fire and theft cover, which, over and above cover for third party damage, protects you in the event your car is stolen or damaged by fire. It will cover you for any injury or even death caused to third parties, as well as possible legal costs incurred during an event like this. If you have the third party, fire and theft cover, you will be able to not only claim for damage or loss to your car, but also for your car audio system for instance (up to a certain amount). The fire cover applies to events where your car is completely burnt but may also apply to other fire damage to your vehicle.
Fully comprehensive insurance: Fully comprehensive insurance gives you the best possible protection for your vehicle. With this cover, not only third-party damage, fire and theft are covered, but damage to your own vehicle as well, whether the damage is incurred during a road accident or by natural causes. Should your vehicle be written off, your insurance company will pay out its replacement cost as long as you are not caught driving without insurance.
What issues does car insurance cover?
- Accident or collision cover: This one covers all the repairs in case there is any damage to the insured car. And also provides cover for any injuries sustained by the policyholder.
- Medical or Personal Injury Protection (PIP): This clause in the policy will cover the expense for the treatment of the occupants in the policy holder’s car at the time of the accident. All the hospital bills and other expenses included.
- Uninsured Motorist’s covered: This clause covers all the expenses that are incurred by the insurer when they are injured in an accident with an uninsured driver or car.
- Bodily Injury Liability: In case the policyholder lands in any trouble and injures any third party or the accident results in the death of a third party, the insurance covers that. All the expenses are covered and any legal obligations or problems are avoided.
- Comprehensive: This includes all the damage caused by natural calamities like earthquake, explosion, fire, flood, falling objects, hurricane, landslide, and others.
- Property Damage Liability: If the policyholder damages any third party’s property, then it is covered under this clause. The expense of the cover is mostly defined.