Auto insurance is also called as vehicle insurance. It is insurance for cars, trucks, and other vehicles. It is primary use is to provide protection against losses incurred due to theft or fire damage or accident damage.
Auto insurance can cover some or all of the following items:
Auto insurance can cover some or all of the following items:
- The insured party
- The insured vehicle
- Third parties (car and people)
- Fire, theft, and damaged due to natural calamities.
Most of the people think why we need to pay insurance unnecessarily as we are appointing specialist driver. But we don't know what happens when. Lets say the accident happened to a vehicle which is not insured. The vehicle owner may not be able to afford to cover the damage of the car and he/she might be injured. This is a really difficult situation to be in.
Similarly, lets suppose the accident occurred to the vehicle which is insured, he can get Property coverage for damage to or theft of his car, Liability coverage pays for your legal responsibility to others for bodily injury or property damage and Medical coverage pays for the cost of treating injuries, rehabilitation.
Most of people will not insure because they think they are wasting money by paying premiums. But really when we think about premium cost, we will pay very small amount of premium and get huge benefit in the way of getting finance support in case of contingent loss. The key difference between this cover and uncovered insurance for vehicle is you can protect against damage to your own vehicle, even if the incident is happen by your fault.
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