Types Of Insurance Available For Cars
More and more cars are coming onto the roads making driving difficult. The width of the roads has not increased but the density of cars has. In the heavy traffic hours, the cars run from bumper to bumper making it impossible to see beyond the car in front. Consider a situation in which you happen to meet with an accident, what would be the consequences?
1) You might meet with health damage requiring medical attention
2) The victim might meet with health damage requiring medical attention
3) Your car would need repairs
4) The victim's property would need repairs
5) Damage to any other property would need to be paid for
The amount of expenditure that would need to be paid for can be huge depending upon the extent of the accident and the vehicles under question. Hence the need for getting insurance for your car arises if you do not want to destabilize your personal finance.
The types of insurance those are available for cars are three in number. These insurance policies range from the basic minimum requirement of the third party to the comprehensive package, which is the more elaborate one. The third type of insurance is from instances of damage caused by theft, fire etc. which cannot be controlled by the owner. Generally, the first and the third insurance offers are combined into one cumulative offer.
1st - Third Party Car Insurance (Basic Minimum): This insurance facilitates you by paying for the damages caused to someone due to your activity. It can be due to an accident between two cars, hitting a pedestrian, or destroying property by ramming into it. This insurance does not cover the expenses of the damages caused to your vehicle if the fault resides with you. While buying a car, this insurance has to be brought to safeguard others interests. It is illegal to drive a car if it is not insured with the necessary services of this policy.
2nd - Comprehensive Car Insurance: This insurance is the broadest form of insurance and the maximum your car can get. It not only covers any third party damage that might be caused by the owner but also takes care of the damages incurred to his/her car. The cost of the premiums for getting this type of insurance is high due to the vast coverage provided by it. The cover also permits the driver to drive any car on the 3rd party basis.
3rd - Insurance from fire and theft: Similar to the third part insurance scheme, this insurance not only offers relief from damages caused to the victim but also takes care of the expenses in case you car gets stolen, burnt or gets affected by one of the many situations mentioned in the policy. Again, this cover does not come into affect if the mistake is on behalf of the insurer.
Being a successful driver or knowing defensive driving does not guarantee that you will not come across any accident. One really can never be sure when an accident might happen making taking the precautionary steps important.