Thursday, October 18, 2018
Home > Finance > Important Elements of Car Insurance

Important Elements of Car Insurance

When you buy a car insurance plan, it is important for you to know what the plan exactly covers. The elements of car insurance are crucial and as the policyholder you need to stay informed. If you are wondering what your car insurance comprises of, take a look at this article to get a clearer picture.

Liability coverage in car insurance

Are you aware that car insurance is available in broadly two types? Yes, that is correct. You can either buy a third party liability cover or a comprehensive cover. Let us begin by understanding what a liability cover is. The main elements of this cover include:

  • Medical cover to third party: If a third party is injured in an accident caused by your vehicle, your insurance provider will compensate the third party on your behalf with a medical cover. The third party can use the money to get treated at a hospital of their choice and recover fully.
  • Property damage cover to third party: If you accidently damage another vehicle or any other third party property, your insurance provider will pay the claim amount to the third party. You don’t have to spend anything out of your own pocket in such a situation.
  • Legal cover: When a third party takes you to court over disputes arising from an accident, the insurance cover will take care of your legal expenses. This is an important element of car insurance as the legal costs can be quite steep. So getting a financial assistance for this proves to be highly beneficial.

These are the main covers of the third party liability car insurance cover. Note here that the damages to your own vehicle are not covered under such a plan. For that, you require to buy a comprehensive car insurance cover.

Benefits of third party liability in car insurance

The main benefit of a third party liability cover is the financial assistance. You can only imagine how much of a problem it will be for you to personally compensate the third party after an accident. These expenses can quickly drain out your bank account. So buy a third party car insurance cover and keep your hard earned money safe.

Secondly, with such a cover in place, you can drive your car in peace. It is a legal requirement to have such a plan. So you become a responsible and law abiding citizen when you buy a third party car insurance plan.

These are two of the most crucial and logical benefits of getting a third party car insurance policy.

Comprehensive car insurance cover

Now, let us quickly glance over the other type of car insurance – the comprehensive cover. Under this type of a plan you get:

  • Third party cover: A third party cover is automatically included in a comprehensive cover. So your insurance provider is liable to make compensations to the third party on your behalf after an accident. The insurer is also to help you with the legal expenses as and when the need arises.
  • Medical cover: A comprehensive car insurance plan offers a medical cover to you in case you suffer an injury due to a road accident. You can use the money to seek treatment at the top hospitals.
  • Cover for own vehicle: Your vehicle is absolutely precious to you. You therefore need to keep it covered under an insurance plan. A comprehensive plan gives this assurance and offers protection for your own car as well. A comprehensive plan therefore is a great option if you have a new or an expensive car. In that case, it is an absolute necessity for you to get a comprehensive car insurance policy.

These are the top elements of a comprehensive car insurance plan. Keep them in mind when you go shopping for the plan of your choice.

In conclusion

Car insurance indeed has some very complex elements. They are easy to comprehend though and you should ensure you understand them before you get a plan for yourself. If you are not sure about what your car insurance covers, speak to your insurance provider or read the policy documents carefully. You will surely get answers to all your queries. So stay informed and get yourself a good and useful car insurance cover. You can choose to get a third party liability cover or a comprehensive cover, depending on what your requirements are. So go ahead and do some research and locate your ideal cover.

Leave a Reply