Car insurance is an agreement that you make with the insurer. The insurer agrees to pay the cost of the damage if you hit someone else's vehicle, injure another person or wreck your vehicle. However, these agreements come with their terms and conditions. It is advisable to cover your vehicle because you are protected from total loss, you will get compensated if parts of the vehicle are stolen, the insurer takes up liability if someone is injured in your vehicle and you do not have to pay for damages which occur to your vehicle by accident. Here are the risks that are covered by comprehensive car insurance.
Third-Party Liability
This is the most important reason why people insure their vehicles. It is the most basic and compulsory insurance cover. Third-party insurance ensures that in case you injure someone or damage their property with your vehicle in the event of an accident, the insurance company pays for the damage. Third-party insurance claims sometimes run into tens of millions of dollars for private vehicles. The coverage is unlimited to the third parties involved in the accident.
Accidental Vehicle Damage
This is the cover that most vehicle owners make claims for. The damages which are covered here include dents to the body of the car, shattered windshields, wrecked side mirrors and any other parts of the vehicle which may get damaged during a car accident. Different insurers will have their limitations on how much damage they cover under this category, and other terms and conditions. The car may need to be worked on by a repair shop that makes insurance auto repairs and has an agreement with the insurance company.
Responsibility to the Passenger
This covers the car owner against any liabilities to their passengers. The liabilities covered include physical, mental and emotional damages which could have been inflicted during or as a result of the accident. The cover also caters for any financial damages that passengers experience as a result of the accident. The cover caters for every passenger if a public service vehicle was involved in the accident.
Special Hazards
Insurers cover vehicle owners against special hazards such as floods, storms and earthquakes. They also cover snow damage, hail damage and other damages which occur during extreme weather.
Before purchasing any insurance policy, it is important to read the terms and conditions that it entails. If there are parts of the agreement which you do not understand, have the insurer explain them to you before signing the papers. When you perform your due diligence on insurance, you are assured that your vehicle, yourself and any third parties are protected from all eventualities on the road.
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