Car or auto insurance refers to an agreement between an insurance provider and a car owner. It protects cars against damage, theft, and vandalism. By paying fixed amounts of money known as premiums to an insurance provider, owners can avoid covering these costs by themselves. Since insurance companies bear most if not all costs incurred due to damage caused by accidents and natural disasters.
Types of vehicle insurance plans
Different car insurance plans provide coverage for different losses. Hence, some plans safeguard against damage caused by accidents while others also protect against theft. Moreover, policies for motorbikes and cars are also different. Let’s explore the different types of vehicle insurance plans available.
Own damage insurance:Damage caused due to wear and tear, theft, climatic conditions, natural fire, riots, vandalism, etc. are all covered by Own Damage Insurance. So, whether it is for repair costs or loss of belongings, this policy covers them.
Third-party insurance:This insurance safeguards against injuries and damages caused by someone else but not those caused by theft or one’s own fault. The premium or regular payments for third-party insurance is generally lesser than other insurance types.
Collision insurance:Collision insurance refers to the policies which provide coverage in cases of collision with stationary items and other vehicles.
Comprehensive damage insurance:This thorough policy offers coverage for own- and third-party damage. Its premium is higher and paying a deductible is also necessary before the insurance provider starts paying.
Benefits of car insurance
- Coverage of damages and losses
- Customizable policies based on one’s budgets, needs, and duration
- Bodily injury liability and in some cases property damage liability
- Offered for bikes and commercial vehicles also
- Coverage for car owners, family members, and others using the car with permission
To gain more insight on which car insurance is best suited to your needs, book a free consultation with your friend and financial advisor DailyFinserv today. Call or sign up now.
