Vehicle owners in most states within the country are required to have car insurance coverage to ensure that they can cover whatever damage or injury that occurs during the use of the vehicle. You see a vehicle you like. You check out its specifications and price, buy it, and start using your vehicle pronto. Life should be that easy and straightforward, right? However, things are rarely ever that easy.
When it comes to owning and using a vehicle in the country, there are many things involved. One of them is car insurance. You’re probably thinking, why do I have to get car insurance? They’re so complicated and difficult to understand, do I need to get involved with it? Short answer–Yes! Like every other type of insurance out there, car insurance is available purely for your safety and that of the people and property around you. Because car insurance is a must-have before you can freely use your car, it is regulated at the state level, not at the federal level.
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Why Is Car Insurance So Important? Because You Need It!
Surprising, isn’t it? Well, it’s true, and this is why. From the moment vehicles came into use, it was clear that accidents would be inevitable. Car insurance is the only way to safely guarantee that any car owner’s damage or injury inflicted on another person’s self or property would be assuredly paid for. The assumption behind this reasoning is that if vehicle owners cannot cover the expenses of the damages or injury they cause, the society at large would suffer financial loss. That is why obtaining at least a third party insurance policy, among other things, is mandatory before your vehicle can be duly deemed roadworthy. Even the most careful drivers will, at some point in time, encounter accidents one way or the other. Having insurance is a safety measure that helps make sure that such mishaps don’t affect you severely, financially speaking.
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What Type of Car Insurance Do I need?
Not all “types” of car insurance is mandatory. While it is always good to get as much coverage as you can easily afford, the law doesn’t necessarily demand that of you. If you aren’t getting the full car insurance package, there are two types of car insurance you should know about. They are:
- Third Party, Fire and Theft Insurance
- Third Party Insurance
Third Party, Fire, and Theft Insurance got your vehicle covered in incidents like theft, vandals, and so on. Because this insurance is solely for your protection, you may choose to or not to get it. It is, as such, not mandatory. On the other hand, Third Party insurance is very compulsory because it is this insurance that covers whatever harm is caused to someone else or their property.
Since car insurance policy is governed at the state level, the degree of comprehensive coverage required of you may differ significantly from state to state. As such, you would need to visit your state’s road transport department (JPJ) to make inquiries to find out how much coverage you need.