12 October 2017

What Is Car Insurance?

Car insurance also known as vehicle, motor or auto insurance is the insurance cover purchased for vehicles and trucks. Car insurance protects against loss and liability that may be incurred from traffic accidents. In many countries, vehicles are required to have insurance before they are put out on the road. This is compulsory in most cases.

The following (all or some of them) can be covered by vehicle insurance:

?The insured party - driver
?The insured vehicle ? car in question
?Third parties (car and people) ? other car and people other than the insured, for example pedestrians or passengers in another vehicle.
?Third party, theft and fire
?Injuries to persons who are in the insured car (despite the No Fault Auto Insurance)

One may find that these items are covered separately with different terms and conditions; while others may be covered together in one policy. The choice of a policy will depend on the surrounding factors such as, the type of vehicle (individual car, passenger vehicle, transportation vehicle, among others). Other factors include the budget put aside for insurance and high risk driving.

It is important to shop for the right policies that will give one a good cover. In addition, finding the right insurance company is also very important. It is advisable to shop around and do some research on what is being offered in car insurance. One may also find tips and free insurance quotes online and it is wise to take advantage of such free information, before settling on a policy. It may also save one enough time in going out to find a suitable insurance policy.

Auto insurance protects one against financial losses that may occur due to an accident. The policy document acts as a legal agreement or contract that is signed by the policy holder and the insurance company. The requirement is that the insured pays premium (in a period indicated) and the insurance company covers any losses that will occur during this period and as stated in the policy document.