What Types of Car Insurance?
3 types of car insurance :-
- Liability coverage/Basic Car Insurance.
- Collision coverage.
- Comprehensive coverage.
Liability Coverage/Basic Car Insurance meaning
Covers the repair/replacement cost of the damaged property (or third-party) Covers the medical bills of the third party due to hospitalization or medical treatment. Vehicle owners should buy minimum liability insurance as per the legal obligation and the insurance policy will cover the same.
Collision Coverage Car Insurance meaning
Collision car insurance covers your car against accidental collisions, either with another vehicle or even with fixed structures. It will also cover you if another car rams into your car while it’s parked
Comprehensive Coverage Car Insurance meaning
Comprehensive insurance is insurance coverage that pays for the repair or replacement. Comprehensive car insurance typically covers third-party liabilities, damage from an accident, fire, natural calamity, theft, etc
Is driving without insurance illegal?
It’s illegal to drive a vehicle on a road or in a public place without at least third party insurance. Even if the vehicle itself is insured, if you’re not correctly insured to drive it you could be considered to be driving without insurance and could get penalised.
How does car insurance work?
Car insurance provides financial protection if you’re in a car accident, your vehicle is damaged in a non-collision event (e.g, a falling tree, hail, etc.), or your car is stolen. In exchange for a premium – the amount of money you pay for your policy – the insurer will pay for covered expenses.
Why should you purchase insurance?
Insurance is a way to manage your risk. When you buy insurance, you purchase protection against unexpected financial losses. The insurance company pays you or someone you choose if something bad happens to you. If you have no insurance and an accident happens, you may be responsible for all related costs.
What happens if you crash without insurance?
If you cause an accident whilst driving without insurance, you will have to pay for any of your own repairs, and potentially repairs for others involved out of your own pocket. You will also face a penalty for driving without insurance.
Can I drive my parents car without insurance?
Can I drive my parents’ car without insurance? No, you’ll need at least third party car insurance if you want to drive your parents’ car.
What are the benefits of car insurance?
Auto insurance provides coverage for:
- Property – such as damage to or theft of your car.
- Liability – your legal responsibility to others for bodily injury or property damage.
- Medical – the cost of treating injuries, rehabilitation and sometimes lost wages and funeral expenses
Does car insurance cover all passengers?
In most cases, passengers are covered by the responsible driver’s insurance policy. However, depending on your insurance coverage and who is responsible for the accident, there may be alternative solutions to this dilemma