Automobile insurance is a coverage which is bought for cars, trucks and other vehicles that play on roads.Its main objective to give complete protection against physical damage or loss from natural and man-made calamities.Motor Insurance is mandatory to play a vehicle on road.
Automobile insurance protects you from paying the full cost for vehicle repairs and medical expenses due to a collision.
In almost everywhere, it’s illegal to drive without car insurance. Every state has a minimum of liability coverage that is legally required. If you don’t have it, you could be fined. If you make a habit of getting caught without it, you could end up in jail.The other good reason to have auto insurance is consistency.
Types of Motor Insurance
- Car insurance :Car insurance gives coverage should against accidental loss or damage to own car or to a third party.While choosing a car insurance policy, a person should alwayes compare premium offered by various insurers to ensure that he got the best deal.
- Two wheeler insurance :It provides protection to bikes and scooters.The features of two wheeler policy are similar to car insurance.
- Commercial Vehicle insurance :Commercial vehicle insurance helps all commercial vehicle drivers to reduce losses they might incur due to damage to their vehicle.Here commercial vehicles include those which are not used for personal purpose, like goods carrying vehicles
- Third party insurance policy :It covers third person who has been injured in an accident involving you and your car.The policy does not provide any direct benefit to the insured.
- Comprehensive insurance cover :This cover is an add on to the third party insurance plan and protects the owner from
financial losses caused by damage or theft of the insured vehicle.Besides insuring vehicles, it also provides third part coverage.
Covered by motor insurance
The damages to the vehicle due to below perils are covered in motor insurance
- Riot & strike
- Fire & burglary
- Terrorism act
- Land slide
- Flood, storm, cyclone
Does not not covered in motor insurance
Always remember your motor insurance will not coverage in below situations-
- If driver is under the influence of drugs or abuse.
- Vehicles is used for illegal activities or for purpose otherwise stated in the policy.
- Not having valid driving license.
- Any loss or damage to the insured vehicle if it happens outside the country.
There are several components that can make up your insurance policy:
- Liability coverage protects you if you are at fault for a collision. It pays for medical expenses and vehicle damage for the other driver and passengers.
- Uninsured motorist coverage pays for damages to your car and medical expenses if an uninsured driver hits your car.
- Collision coverage pays to repair your vehicle, if you were at fault for the damage.
- Underinsured motorist coverage pays damages for your car if someone hits it, but their insurance can’t pay for your car damages.
- Comprehensive coverage pays for damage to your car due to theft, fire, or falling objects.
The time limit for claims that are right to compensation may vary depending upon the content of the policy, and an action is to be brought within that period from the date when the damage occurred.
Some factors that affect the premiums for this protection, include :
- Marital status.
- Credit history.
- Car’s make and model.
- City and neighborhood