What is Vehicle insurance and how it is important
Vehicle insurance covers all the cars motorcycles and the trucks on the road. It provides with a financial protection against anybody damage and bodily injury. Vehicle Insurance may also offer protection against theft or against the damage the car may have sustained in traffic, weather or natural disasters.
In many jurisdictions it is a must to have vehicle insurance before a vehicle hits the road after it has been purchased. Most state that both the user and the car must bear the insurance although it may vary greatly.
A vehicle insurance company may cover some of the following items
- The medical payments for the insured party
- If the property damaged has been caused by the insured
- Any physical damage to the insured vehicle. If the third party car has been damaged
- If the third party car has been stolen or caught fire
- The cost to rent a vehicle which does not belong to you
- The cost to tow the car that has been damaged to the repair facility
- Also accidents that involve uninsured motorists
When a vehicle has been declared a total loss and the market value on which it was purchased is less than the amount still owed to the bank that deals with financing the car then gap insurance may be need to cover the difference. This gap insurance is usually offered by the finance company when you are purchasing the car.
This is a fixed contribution which is a must to be paid each time a car is repaired, mostly the charges are made to the repair ‘garage’this is where the vehicles are taken for repair or servicing accidental death and dismemberment Then the insurance company deducts the excess payment from the other person’s insurance company.
The insurance charges may either be authorized by the government or by the go to Insurance company. Note that the address of the car owner can affect the premiums for example areas with high crime rates will lead to higher costs of insurance. Age may also affect the premiums as teenage drivers who have no driving record have higher car insurance premiums. However the young drivers may be offered discounts if they go for further driving lessons. Survey has shown that married drivers cause few accidents than the rest, so the policy owners who are married will get lower premiums than the single people
This is kind of an extension of a car insurance which covers the natural wear and tear of a car; many drivers will opt to buy this insurance as a means of protection against costly breakdowns.