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What Does Car Insurance Cover?
A single car insurance policy can include several types of coverage. To decide what to buy, it’s important to research the options available, which types of coverage are required and how different forms of coverage work.
Keep in mind that your policy covers you, the licensed members of your household who are listed on the policy, and usually anyone else you give permission to drive the car.
What is Vehicle Insurance?
Vehicle insurance (also known as car insurance, motor insurance or auto insurance) is insurance for cars, trucks, motorcycles, and other road vehicles. Its primary use is to provide financial protection against physical damage or bodily injury resulting from traffic collisions and against liability that could also arise there from. Vehicle insurance may additionally offer financial protection against as theft of the vehicle, and against damage to the vehicle sustained from events other than traffic collisions, such as keying and damage sustained by colliding with stationary objects. The specific terms of vehicle insurance vary with legal regulations in each region.
What should your car insurance coverage be?
Collision – This policy covers repairs to your car after an accident. Comprehensive – This policy covers costs if your car is stolen or damaged outside of an accident. Nearly every state requires car owners to carry auto insurance, and most states have required minimum values for different policies.
What are the benefits of car insurance?
Benefits of Car Insurance:
- All the states in India require a minimum amount of insurance. Car insurance can help offset the loss of huge sum in the following manner:
- Provides benefits to survivors when an accident results in death.
- It covers lawsuits, including legal fees brought against you as the result of an accident.
- Covers the bills of vehicle repairs due to damage caused in an accident.
- Covers damage caused by other than an accident for example, theft, fire, etc.
- Additional discounts: Car insurance policies allow premium discounts for theft or for owning more than one policy with the same insurer. It also provides added advantage to extend coverage to others driving your car with your permission.
- No Claim Bonus: If you do not make a claim during the policy period, a No Claim Bonus is offered on renewals provided you fulfill certain terms and conditions
Why is it mandatory to have vehicle insurance?
The primary reason to mandate motor insurance is third party liability. Unlike any other property, a car in a public space can cause damage to the life and property of others. This liability for death, bodily injury or damage to property of third party is borne by the insurer.
Can someone not on your insurance drive your car?
If you're thinking of letting someone drive your car for a few hours, days, or weeks, keep in mind that you're not only lending your car, you're also lending your car insurance. In most states, comprehensive and collision coverage protects yourvehicle regardless of who's driving it.