Motor insurance to give complete protection against damage or loss

motor insurance

Motor Insurance and its policy

Motor insurance is a coverage for cars, trucks and other road-driven vehicles.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 country 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.

What is Standard Motor Insurance?

Understanding auto insurance coverage is an important part of being a driver. Take a few minutes to learn what actually goes into your policy.It may save you a lot of money and a lot of headaches:

  • Standard Automobile Insurance describes liability, uninsured/underinsured, and medical payments coverage.
  • Optional Automobile insurance coverage explains collision and comprehensive coverage, as well as optional insurance endorsements.
  • Understanding your Policy narrates the pieces that make up your insurance policy document.

Standard Automobile Insurance describes liability, uninsured/underinsured, and medical payments coverage.

Liability Insurance

This is probably the most important type of motor insurance required by auto insurance laws.
Liability automobile insurance coverage you against the cost of damage and injury that you cause to another in an automobile accident.

It actually consists of two separate policies, liability for bodily injury and liability for property damage.
Bodily injury coverage protects you from the cost of personal injury to others, and property damage coverage protects you from the cost of damage .

Medical payments insurance

This policy protects for the instant treatment of injuries caused by a car accident. You, your family members and other passengers in your car are covered, regardless of who is at fault for the accident

Depending on the specifics of the policy, medical payments insurance may also indemnify for lost wages or services of a person injured in the car accident.

Personal injury insurance , is similar to medical payments coverage, but usually gives broader coverage. This policy gives compensation for lost wages, funeral expenses, and pain and suffering.

Underinsured and Uninsured Motorist Insurance

Both of these types of insurance save you against injury caused in an motor accident where the at-fault driver’s liability car insurance coverage is inadequate. Although they’re often lumped together, in fact they’re really two distinct policies.

Uninsured motor coverage is needed when the other driver did not have a liability coverage.

Underinsured motor insurance pays for the cost of your injuries that exceed the other driver’s coverage maximum.

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 always compare premium offered by different insurance company to ensure that he got the best deal.
  • Two wheeler insurance :It gives protection to motorbikes and scooters.The features of motorcycle policy are similar to car insurance.
  • Commercial Vehicle insurance ::Commercial vehicle insurance provides all commercial motor drivers to minimize 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 is an add on to the third party insurance plan and protects the proprietor from financial losses caused by damage, destruction or theft .Besides insuring vehicles, it also provides third part coverage.

Covered by motor insurance

The damages to the vehicle due to  perils are covered in motor insurance which are given below:

  • Riot & strike
  • Fire & burglary
  • Terrorism act
  • Earthquake
  • Land slide
  • Flood, storm, cyclone

Does not not covered in motor insurance

Always remember your motor insurance will not coverage in below situations-

  • If the 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 factors that can make up your motor insurance policy:

  • Liability coverage protect you if you are at mistake for a collision. It gives for medical costs and vehicle damage for the other driver and passengers.
  • Uninsured motorist coverage pays for losses due to damage 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 offers 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 :

  • Gender.
  • Age.
  • Marital status.
  • Credit history.
  • Car’s make and model.
  • City and neighborhood.


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