Auto insurance is essential for every car owner in order to safeguard one from any unpredictable risk in the future. This is basically an agreement a car owner enters with the insurer such that the owner pays premiums preferably on a monthly basis. This serves to cover him / her in the event of occurrence of the risk insured against. Covers road accidents and other resultant risks.
Auto insurance serves to cover the car owner and his /her property. It is therefore necessary for one seek cover.
Auto insurance policy usually contains six types of coverage. The auto policies run for varied lengths of time which depending on the insurance company. They specify the amount to be paid as premiums and spell out the terms and conditions.
There are different types of Auto insurance coverage that is;
Body injuries liability; covers for lost earnings, pains, medical charges, legal fees and even funeral costs. It is important for every car owner to obtain this coverage.
Collision; This covers the damages on your car as a result of colliding with another. Car owners are compensated even if they are responsible for the accident.
Property damage liability; This covers other persons properties, structures and items hit by the car.
Comprehensive coverage; covers the car owner from the risks that are as a result of a collision. These risks include; theft, fire, hitting an animal etc.
Underinsured and uninsured motorist cover; covers the car driver and passengers in the car if they are hit by an uninsured motorist. All the expenses such as medical etc.
Forms of insurance
No fault auto-insurance ;Your own car insurer pays for your expenses such as medical charges regardless of who caused the accident.
At fault auto-insurance; The motorist who causes the accident pays for the damages and injuries on other people or property.