What is auto Car Insurance ? How else does it work?
If you have bought your car, do you know what car insurances is? If you’re looking to buy a new car, here’s what you need to know about auto insurance. If your car meets with an accident, auto insurance can help you financially.
Please tell me more about what is car insurances. How does it work, what is covered by car insurances and what is not and what are its benefits or advantages?
What is car insurances ? what is car insurances in English
Car insurances provides financial assistance for car damage due to accidents. This type of insurance is also called charter insurance.
If your car is stolen and the accident causes damage to the insured, the insured car and third parties or their property, the insurance company will provide financial assistance.
How does car insurances work? (How Car Insurances Works in united states)
auto insurance is a contract between the all USA insurance company and the car owner. The car owner pays the premium to the insurance company (as per the plan of the insurance company).
Insurance companies provide financial assistance in case of loss or damage to the insured vehicle.
Most of the insurance companies in united states have partnerships with auto companies. Some deals offer car insurance when a person buys a new car.
Types of car insurance in english
There are mainly two types of car insurance in united states. Tell us more about this car insurances –
Third party auto insurance
Third party auto insurance covers damages caused to third parties and their property. For example, an accident that causes injury to a third person, death of a third person and damage to property.
Under the Motor Vehicles Act, third party insurance is mandatory for all types of road vehicles in united states. As a car owner, you should also buy third-party insurance.
Comprehensive car insurances
Comprehensive car insurance covers death/injury to the driver and passengers as well as third party vehicle and property damage caused by the car.
This insurance covers the third party as well as the insured vehicle. The insured covers the cost of damage to the vehicle and third parties.
What does car insurances cover?
Third Party Property Damage insurance : In the event of an accident between the insured vehicle and other vehicles, compensation for damage caused to the third party vehicle and loss of life of the third party.
Auto Damage insurance: Covers for auto damage due to theft, accident or natural calamities.
Personal Injury insurance: In the event of an accident, injuries caused to the driver, passengers and third parties are covered.
Car Damage insurance: Covers damages caused to your car and third party vehicles as a result of an accident.
Death insurance: Pays when the driver and passenger in the vehicle die as a result of an accident.
What is not covered by car insurances ?
- Accidents caused by driving without a license are not covered.
- Intentional vehicle damage is not covered.
- Damage caused due to aging of the vehicle is not covered.
- Damage caused to the car due to oil spill is not covered.
- Damage caused due to failure to comply with the conditions of the insurance company is not covered.
- If you sell your car to someone else and cannot transfer the car insurances. Accidental damage is not included.
Car insurances benefits
Personal Accidents Insurance: Financial assistance will be provided in case of personal injury, third party death or vehicle damage. Apart from third parties, you can also get personal accident insurance which protects you in case of injury, death or disability.
No Claim Bonus (NCB): After enrolment, bonus is paid if there are no claims during the policy term. Also known as No Claim Bonus. This bonus helps in reducing the premium at the time of renewal.
Compensation for Losses: Financial assistance for losses due to theft, accident, fire, terrorism, riots, explosion and natural calamities.
Garage Network: Many insurance companies have large garage networks. it is everywhere. With the help you can get car service anywhere.
Online Auto Insurance: This is the age of technology where many companies sell insurance products online. You can also choose the right insurance policy and buy it online.
Optional Add-ons: Depending on your requirements, you can add optional add-ons to your car insurances policy. Additional features like zero depreciation, roadside assistance and replaceable cover can further enhance the safety.