Car insurance is a binding contract between the car owner and the Insurance Company to offer financial support when the car gets involved in an accident, theft or when it gets damaged. It is currently a legal requirement for every vehicle or car to have an insurance policy to enjoy financial protection in case of any physical injury or damage. The car owner pays premiums to the Insurance Company, and in return, the Company will commit to paying any loss incurred as defined in the policy. There are various types of car insurance which include;
Comprehensive Car Insurance
This type of car insurance covers the car from damages caused by natural disasters or forces that man has no control over. It also covers losses resulting from floods, accidental fire, theft, damage to the car by animals and vandalism. The policy can cover a car repair or replacement and ensure the car regains its former glory and functioning. Comprehensive car insurance is very important as it will cover all costs of the damage and relief the car owner of any expenditure caused by the unfortunate event. Nobody can predict the sequence of a natural disaster like floods or hailstones, and it is, therefore, important to protect your car with the comprehensive cover in case a misfortune strikes.
Third Party Fire and Theft Insurance
This type of insurance covers the car in case it is stolen or catches fire. The cover will include any amount of damage caused by fire including immediate repair, spare parts, and any other damage. The policy will also extend to damage to other properties caused by your car. If your car catches fire, and the fire extends to another property, the insurance will be liable to cover the property. Before settling for payment or repairing your car, the insurance company will undertake evaluations to the cause of fire or theft, the model of the car, the vulnerability of the car and if the car had fire fighting interventions or anti-theft measures in place at the time of the act.
Third Party Car Insurance Cover
Third party car insurance covers damage caused by your car to other peoples properties. The insurance company will fully compensate the other car and will cover costs related to injuries, repair or damage caused by a fault by the covered driver. The cover will therefore not include your car, and the insurance company will not pay for repairs to your car if it hits or crashed another car. This type of cover suits new drivers who are still learners and are more vulnerable to cause accidents on the road.
Personal Injury Protection
It helps cover all medical expenses incurred in case your car gets involved in an accident. The cover will include all family members, drivers, passengers and any other party listed in the policy. The cover will include medical bills, lost income arising from effects of the accident, funeral expenses and other covers spelled out in the policy.
With many types of car insurance available, it is important to choose one that is convenient for your car and one that suits well your condition.