Fri. Aug 14th, 2020

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the-happy-factory.com

Types of Car Insurance

4 min read

When you buy a new car, it is the most valuable thing to you in the entire universe, and you try to protect it with everything you have. You plan to buy car insurance for your car, which protects you and your car from unnecessary dissension. You make sure your car deserves the best treatment and choose the insurance accordingly.

Knowing what kind of insurance coverage a car need is not an easy task.

There are three basic types of coverage offered by the majority of insurance providers.

  • Liability
  • Collision
  • Comprehensive

Liability

This is the bare minimum level of insurance coverage that you need to have to be a legally insured driver. The aim is to protect the driver if he/she is responsible for the accident or even if the accident is not their fault. It pays for the damages, medical expenses, and other consequences suffered by those who underwent injuries as the result of the accident. When you are involved in an accident, and it is proved that the accident took place before your negligence, this coverage will come in handy. Benefits are

  • Covers the repair/replacement cost of the damaged third property
  • Covers medical bills
  • Reduces unexpected expenses from the pocket of the owner
  • Will pay for the third party damages too

This liability coverage was made essential as per the Motor Vehicle Act 1988

Collision

This type of insurance involves coverage for repairs that your vehicle needs, too, in case of an accident no matter who is at fault. It also covers property damage or any other damage caused by the car during the accident. It also has a replacement provision.

Benefits are

  • In most cases, the repairing cost will be more than the current market price of the vehicle. In these cases, the insurance company will bear the current market price of the car
  • Collision cover can be as low as possible for old vehicles.

Comprehensive

This provides replacement of the vehicle if it is stolen or damaged by natural disasters. It includes all kinds of risk factors and is very handy sometimes. Benefits are:

The insurance policy will cover the following risk factors

  • Weather damage
  • Floods
  • Fire
  • Theft

Apart from these three basic coverages, two other coverages require mention

  • Personal Injury Coverage
  • Uninsured motorist coverage

Personal Injury Coverage

You can plan certain policies to overcome the different risk factors of HL Assurance SG. Benefits are

  • Covers the entire cost in case of an accident
  • Medical expenses of the driver will be paid by the insurance company
  • No matter of who is at fault the company is obliged to pay the bills
  • In one sentence, you make the best investment by buying this.

Uninsured Motorist Coverage

This is useful when your vehicle undergoes an accident by the fault of another vehicle Benefits are

  • Bears the repairing or replacement costs of the car
  • This becomes beneficial when third party insurance money is not enough to meet your requirements.
  • The company will pay for extra or total damage, which will be easy for your pocket.

Third-party car insurance policy is the most famous one. Features of the third party insurance include

  • Affordable
  • One can buy the cheapest insurance plan by covering the third party liability only
  • Covers physical injury and even death
  • The insurance policy will cover physical injuries and even the death of the third party.
  • Covers property damage

·      Fulfills Legal Obligation

The insurance policy will cover the mandatory legal requirements in the most effective and cheap way

·      Suitable For Old Used Cars

If you are searching for the best insurance plan for an old vehicle, then this is the best possible insurance policy plan because the market value of old cars is comparatively less than it’s repairing/replacement value.

·      Doesn’t Cover One’s Vehicle Repairing Costs

This is the only drawback of this insurance policy plan. HL Assurance AG will not cover the physical injuries or even death of any driver or any passenger of the car unless and until extra riders are added by the policy owner.

Another most remarkable insurance policy is the Comprehensive insurance policy.

Features are

  • It comes with a wide range of coverage options
  • Includes damages to the third party caused by accident
  • Covers vehicle accident factors.
  • Manmade and damage caused by natural disasters are covered by the policy
  • Additional riders can be subscribed to increase the insurance cover

Apart from these, there are some add-on car insurance covers for vehicles

  • Roadside Assistance – If one’s car stops working en route, one can call the insurance company, which will rescue them.
  • Engine Replacement – If your engine stops working for some reason the company will replace it
  • Nil depreciation cover – This will help you get maximum reimbursement for your car.

So if you have recently bought a new car and are looking for insurance plans, the plans mentioned above and their features will surely help you. While mandatory liability insurance is the cheapest option, it is not always beneficial. By comparing and evaluating various plans, you can settle for the best insurance policy.

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