Car Insurance

4 min readApr 23, 2022


Why do I need to buy Car Insurance? Say `Yes` to Car Insurance

A car Insurance Policy contract provides various compensations to the holder. This means it covers the overall damage to your car and the damage caused by you to a third party or the car with a very minor premium. It’s a contract between the car owner and the insurance company for the compensation of any financial loss.

This means the policyholder could be safe from the uncertainty of theft, natural disasters, damage, and injury to the third party and car owner. By paying a premium all risks are covered.

Imagine you just buy your dream and its collapse; a Nightmare, that is something unbearable emotionally and financially. That’s what Insurance companies eliminate Fear, tension, or risk.

Mainly 3 types of car Insurance has offered.

· Third-party liability car insurance

· Comprehensive car insurance

· Collison car insurance

In Most countries third-party liability insurance is mandatory. Third-party insurance means a person who is injured due to your negligence will be paid by your insurance company. Ultimate means paid by you. And other types like comprehensive car insurance and Personal injury are not enforced by law. In the 49 to 50 states of the USA police require all time to the driver must have an active insurance policy.

Comprehensive insurance is better to cover the loss caused by the car owner or caused by a third party. Also includes indemnification from theft or fire but it does not include collision. Your stolen car will replace in case of comprehensive car insurance. Usually, lenders like comprehensive insurance if you are leasing your car.

Car damage may cause due to many reasons Collison, mistake of another person, theft of parts, Several insurance companies exclude the natural calamities effects. But what has been written in an insurance contract is a priority; your selection matters. 87% of drivers in the US have some sort of car insurance that representing a vast majority enjoying the benefits of car insurance.

There are divergent policies that provide multiple securities to the policyholder. Packages are according to the ownership e.g you are the owner, the Car is a rental or you are a rider (Uber, Lyft)

The Quote for an insurance policy is not the same. It depends upon the price of the vehicle. If the cost $ of the car is high then its quotation will also high. The model also decides the plan as the vintage car has a separate slab. Cars that are more than 25 years (rods, muscles cars, vintage) enjoys different insurance policy. The current condition of the vehicle is also very important. If the car is new then the policy is different whereas if the car is used the policy agenda will be different. Some companies hesitate to provide insurance for Vintage and foreign cars. Policies vary because of depreciation and the market value of the used auto.

The car insurance Company indemnifies the following losses and put the holder back in a comfortable state.

· Indemnify the loss of theft parts or vandalism,

· Loss of the third party due to your negligence,

· Loss of your car and yours,

· Loss of rental car,

· Loss of passengers (if you are an insured driver)

· Loss caused due to the third party but not paid to you,

· Indemnify the health loss,

· Loss happens due to natural disasters Flood, Earthquake, Cyclone, Storms, etc

· Loss occurs due to fire

Car side mirrors and the car are often stolen sometimes due to the wrong parking area. Usually, all insurance companies cover the loss. And cars may be damaged due to collapse. You can claim the insurance company for your indemnification.

If your unsafe driving causes damage to a third party or you accidentally hit the car that causes damage to you, your car that loss is also indemnified by the company.

If the car is rented and you have the policy then you will get compensation against any damage to you and your passengers and car.

Sometimes our car is vandalized due to a third party that loss will also cover by the insurance carrier company.

Any loss to the vehicle due to a natural disaster is fortunately covered by the policymakers.

Injuries caused to other parties and as well to the policyholder (In case what policy plan you selected).

Note: (Everything depends on the policy contract that you select for your car)

If you already have car insurance then it is wonderful. If the insurance company program covers the potential loss. Always calculate the probability of loss before choosing a plan.

Additionally, the purpose of your driving is deemed to be very important. It is suggested to read the policy before buying and keep your job in mind what your car is for, for business purposes or the house or sports. it is also necessary to be updated and modify your policy yearly or quarterly.

Now most companies have apps and online insurance to facilitate the client. You can compare the quotations of all the companies to find the best one for you.

TAGS: car insurance, comprehensive car insurance, online car insurance, minimum quotation.




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