Car Insurance: What Do You Really Need?

Do you love driving around in your car? Do you consider yourself a good driver? Even if you are that doesn’t mean you shouldn’t have car insurance. An accident such as theft or fire could occur due to negligence from another party and not necessarily your fault. At that time the cost of repair would be paid in full by none other than yourself if you don’t have a good car insurance policy.

What is car insurance?

It is a type of insurance policy offered by insurance companies geared towards covering any damage that may occur to your car such as theft or fire among others. Coverage is paid for by a monthly or yearly insurance premium.

Types of car insurance:

Supplementary Car Insurance:

This type of insurance policy covers damage that happens to the insured’s car as a result of fire or theft for example as well as damage that affects other people’s property.

There are 4 types of supplementary insurance:

1. Civil liability towards third party insurance: the insurance company covers damage that occurs to other people’s property. The payment is made after the insurance company confirms the damage was caused by the insured.
2. Fire & theft: the insurance company covers damage caused to the insured car by either fire or theft.
3. Fire, theft, and civil liability: this type of policy comprises the previous two cases meaning that the insurance company covers damage caused to a third party’s property (after confirming the damage was in fact caused by the insured), and also covers the insured’s car in cases of theft or fire.

Comprehensive insurance policy covers all and any damage that occurs to the insured’s car.

4- Comprehensive coverage or comprehensive insurance: one of the benefits of comprehensive coverage is that the insurance company covers damage caused to the insured’s car by fire, total or partial theft, as well as damage to a third party’s car/property (after confirming the damage was in fact caused by the insured). 

Coverage also includes traffic accidents and other damages with the possibility of adding a road assist service to the policy as well as a personal accident insurance policy that covers all passengers in the car at the time of the accident.

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Compulsory Car Insurance Policy: 

This type of policy is compulsory by law for every person who obtains or renews a car’s license. The policy is purchased from the various insurance companies’ kiosks located within each local Department of Motor Vehicles. 

This type of car insurance covers damage done to the third party in a car accident, but the insured party must be the one who caused the damage/traffic accident and not another person such as a driver for example. This car insurance policy is considered one of the most important documents when applying for a car license.