Many of you might have heard about car insurance policies, however, how many of you have one?
What is an auto insurance policy? – Auto insurance is a contract between a car owner and an insurance company that protects you from financial losses in the event of a car accident or theft.
The car owner or insurance owner pays a premium (an amount) to the insurance company and in return, the company agrees to pay losses which are already outlined in the policy, i.e damages to a car.
What is a premium? – According to Valuepenguin, your car insurance premium is the amount you pay your insurance company on a regular basis. The amount is paid every month or every six months as per the mutual decision in exchange for insurance coverage.
Once the premium is paid, the insurer will pay for coverages detailed in the insurance policy, like liability and collision coverage.
Why should I get an insurance policy? – Accidents can happen any second of any day! Hence, yes, car insurance is important. Although many individuals in Pakistan do not have these policies, these policies provide financial protection in the event of your vehicle being damaged. It will also provide cover for injuries to other drivers, passengers or pedestrians, and their property (depending on the policy you purchase).
Where can I get an auto insurance policy? – Many insurance companies all around Pakistan sell automotive insurance policies. It is important to meet with their representatives or search their policies online in order to understand the terms and conditions better.
According to Karlo Compare, there are different types of insurance like Bodily Injury Liability, Property Damage Liability, Collision, Comprehensive, Uninsured Motorist Coverage, Underinsured Motorist Coverage, and Gap Insurance.
Some of these are required while others are optional but that completely depends on your state’s laws or whether you’re automobile is financed. On the other hand, car dealerships also provide insurance policies, but its always best to compare and then decide which is suitable for you.
What types of insurances are there? – There are mainly 3 types of car insurance.
1- Third-party: This is the bare minimum required by law, but isn’t always the cheapest. It covers injuries to other people and damage to others’ property.
2- Third-party, fire, and theft: This is the bare minimum required by law, but isn’t always the cheapest. It covers injuries to other people and damage to others’ property.
3- Comprehensive: This is the bare minimum required by law, but isn’t always the cheapest. It covers injuries to other people and damage to others’ property.
What happens if I meet an accident? – According to CompareKarlo, if you meet an accident there’s a chance that you will face legal proceedings and that’s when your choice of the correct auto insurance company will be a help as they will cover the cost of some legal expenses. Having this cover in place will be another security for you. The costs can mount up and so, having the cover in place will provide you complete peace of mind.
Stay safe and stay tuned to Brandsynario.
Source: CompareKarlo, RAC