Car insurance can also be termed as vehicle insurance. Car insurance is the kind of automobile insurance which is purchased by consumers for their personal four-wheeler vehicles to ensure protection against losses caused due to traffic accidents, theft, fire damage, and other factors. One of the most important responsibilities of owning a vehicle is car insurance. In different countries insuring one's car is a mandatory rule. Car insurance provides financial cover against damage caused to an insured automobile that occurs due to an accident, fire or theft. It also covers financial liability against damage caused to another person's property in the event of an accident. The comprehensive car insurance policy on the other hand deals with loss or damage you encounter on your own vehicle. The title says it's comprehensive but takes note it is a misnomer because it does not cover everything. It has its own car insurance exclusions and limitations which will be discussed hereafter. All drivers must have car insurance, at minimum, liability. Since you know you have to purchase car insurance, you can see why it is so important to make comparisons among brokers and companies to ensure you get not only the best insurance coverage, but also the rates for the policy chosen.
It mainly comes in the following two types. Depending upon the budget, one can go for the policy which best suits their pocket.
In this type of insurance policy, the vehicle gets the coverage without considering the person who is driving it.
In this type of car insurance policy, the vehicle is insured only for one driver.
Types of Coverage of Car Insurance
The car insurance companies provide different sort of coverage or protection to the customers which are as follows:
Car insurance in different countries requires that you carry automobile liability insurance in certain minimum amounts. If you are at fault in an accident the law requires that you pay the damages sustained by the person who is not at fault. These can include property damage, which is the cost to repair or replace any property that you have damaged. Penalties for not purchasing auto insurance vary by country, but often involve a substantial fine, license and/or registration suspension or revocation, as well as possible jail time. Usually, the minimum required by law is third party insurance to protect third parties against the financial consequences of loss, damage or injury caused by a vehicle.
