Are you planning on purchasing a new car, and you are wondering whether getting a motor policy is a smart move? It is not only about vehicle insurance being mandatory by the law. It is about financial protection and other benefits that come from having a motor policy. The primary purpose of acquiring car insurance is to secure financial protection if you or your vehicle are involved in an accident. Depending on the plan you choose, you might expect financial protection for the following:
- Third-party injury and death claims – your vehicle participated in an accident caused by a third party. If they are to blame, you get financial protection for both bodily injuries and death.
- Third-party property damage – did the other party cause damage to your or their vehicle? If that is the case, you can claim against the insurer. Depending on who caused the accident, the claim will be either against your or their insurer.
- Own property damage – if your vehicle suffered damage, you can file both no-fault and your fault claims. The degree of financial protection might vary.
- Fire and theft claims – did your vehicle get stolen? Was there a fire or another natural disaster that damaged your car? A motor policy can protect you financially in case this happens.
If you apply for a car insurance plan, you can pick between three different extents of cover:
- Third-party
- Third-party, fire, and theft
- Comprehensive
Add-On Covers
Here are some additional premiums you can add to a motor policy:
- Legal liability of and to passengers – what if your passenger or people in the other vehicles sue you for their injuries?
- Assessed repair time compensation – you might not be able to use your vehicle for a while, and this should cover your expenses over that period.
- Windscreen – if the windshield breaks, and it was not the result of a road accident.
- Flood – if a flood damages your vehicle, this will have you covered.
A Peace of Mind
Finally, you can’t put a price on having peace of mind. It might not be a direct way how a motor policy protects you, but it is crucial. Being aware that you have an car insurance plan will help you sleep well at night. That is especially true if you are not the only one driving the vehicle. If an accident occurs, you can rest assured that the insurance will cover the repairs necessary. That way, you will ensure that the family doesn’t enter a rough financial patch due to an accident.
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What If You Cause an Accident?
Nobody is perfect, and you might have caused an accident while driving your car. Did a misfortunate event cause damage to someone else’s property? If that is the case, having a motor policy might provide some protection mechanism to keep you from losing everything you own over a lawsuit. A comprehensive motor insurance policy allows you to make your damage claim against your insurer. If you participated in an accident, it is crucial to stay calm. Once the time to discuss the damage comes, it is not wise to offer payments or settlements immediately. Instead, do everything the law requires you to, such as making a police report or filing an accident notification form to send to the insurer. To file any claim as soon as possible, make sure to stay within the deadline specified by the law or your insurance company.
