Are you looking forward to insuring your car and you have no idea to go about it? If you are, then you need to continue reading this article and also do well to follow every piece of information that will be shared here to the latter. Car insurance has gained popularity over the years. The more people know about this type of insurance, the more they want to get in on it.
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People are now insuring everything they have got from life to property and you won’t blame them. For you to get a better understanding of what car insurance really is you need to have an idea of what the term insurance means. Well, insurance simply is an arrangement between a company and a person. It is, therefore, an arrangement between two parties. Here the company or one of the parties involved in this sort of arrangement undertakes the responsibility to provide guarantee or compensation for specified losses. It can also be in the form of damages, illness or even death. There are two major forms of insurance and they are the life/health insurance and property insurance. Any other form of insurance falls under these two.
What Is Car Insurance
Now you already know what the term insurance means, do you know what car insurance is? From the definition on the previous header, one can easily decipher what car insurance means. Car insurance is a type of property insurance. Car insurance is insurance for cars. This type of insurance gives you financial protection against physical damage or bodily injuries resulting from liabilities or incidents in a vehicle. This type of insurance protects you against financial loss in the event of a financial loss or theft.
Types of Car Insurance Coverage
There are three types of insurance coverage’s but it is quite an unfortunate situation as not so many persons know about this. Knowing the type of car insurance you need is not always simple, but I will be simplifying it for you. The factor that makes this difficult for car owners is that they don’t know the type of insurance they really want. Not knowing about the types of car insurance we have and the type that you need is detrimental.
Just as I have mentioned earlier there are three basic types of car insurance and they are;
Each of the types listed above is different from one another. To further know about these types of car insurance, let’s take a look at them separately.
This form of insurance protects you the driver, in the event that you are responsible or held responsible for an accident even if you didn’t cause one. This insurance covers damages, lost wages, medical expenses, and a host of other losses suffered by the persons who sustained injuries as a result of the accident.
This covers repair to your vehicle involved in an accident resulting from a traffic accident, no matter who is at fault. It also covers damage as a result of collisions with trees or buildings. This form of insurance also offers replacement provisions. This means that in the event of the vehicle being termed or declared totaled, you will be given a replacement vehicle of the same market value or a down payment for another one.
This form covers the replacement of the vehicle if stolen or damaged by natural disasters. Note that with each of these insurance coverage’s, comes different levels of representations. Each insurance provider here may have their own unique policy provisions and coverage. It is all left for you to determine the type that best suit you and its requirements