Tuesday, 10 April 2012

Car insurance

What is car insurance?

Car insurance (also known as vehicle insurance auto insurance, gap insurance, car insurance, or motor insurance) is insurance purchased for cars, trucks, motorcycles, and other road vehicles. In general it will cover you for damage to the vehicle or a person if an accident occurs, and will help prevent the person who has car insurance from having to pay a massive bill for repairs and/or compensation for the accident or injury. There will usually be an excess for the car insurance which will have to be paid when a claim is made, this amount is usually a lot less than the car insurance company will pay.

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Why are the different types of car insurance?

There are several different types of car insurance avaliable in the modern car insurance industry. Some car insurance policies will cover you to only drive your own vehicle which other car insurance policies will allow you to drive other peoples cars too. The level of cover varies between different policy types and diffent car insurance companies will offer varied types of insurance too, for example some companies will only offer third party insurance, while others may offer full cover car insurance which may or may not include fire and theft damage cover too. The best thing to do is carefully read what the car insurance company policy will actually cover when taking out car insurance to make sure that you are covered for every potential incident that may occur.

Why do I need car insurance?

The short answer is - YES you need car insurance. Why? It is illigal in most countries to drive a vehicle without car insurance on the vehicle, if you drive a car that does not have a valid car insurance certificate then local authorities may ceize the vehicle, and the person driving may incurr legal fees, car storage fees (if towed away), fines and points on their license. So its actually cheaper to get car insurance than to drive illigally.

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