Every person who used a vehicle on the road should have at least third party personal injury insurance. It is compulsory to have vehicle insurance before using or keeping a motor vehicle on public roads. Therefore motorist cannot drive the vehicle until it is insured. Auto Insurance deals with the insurance covers for the damage caused to the automobile or its parts due to natural and man-made calamities.
It is required by law, and you may very well be on your way to trouble if you cannot comply with it. What are the benefits of having your car insured? The answer is simple. It provides financial security, responsibility in case of accidents and payment along with total peace of mind.
It also covers the bills of vehicle repairs due to damage caused in an accident. Car or Bike insurance acts like a friend at the time of crisis. People who drive and have car insurance know that they have a safety net that will help them tackle any financial or legal problems that might arise out of a car accident.
Car insurance can help offset the loss of huge total in the following manner :
- It provides benefits to survivors when an accident results in death.
- It covers the bills of vehicle repairs due to damage caused in an accident.
- It covers lawsuits, including legal fees brought against you as the result of an accident.
- It covers damage caused by other than an accident for example, theft, fire, etc.
- Additional Discounts : Car insurance policies allow premium discounts for theft or for owning more than one policy with the same insurer. It also provides added advantage to extend coverage to others driving your car with your permission.
Car premium is determined by a number of factors and the amount of premium increases with the rise in the price of the vehicle. The claims of the Auto Insurance can be accidental, theft claims or third party claims.
