Car Insurance protects you and your vehicle against loss and damage on account of unforeseen risks and unexpected incidents.
Buying insurance for your car is the protection wherein you enter into a contract with the insurance company who agrees to protect you against financial losses caused by accidents and any subsequent liabilities.
Nature of coverage:
The policy taken will determine and outline clearly the nature and types of losses covered and the extent of coverage.
Usually its coverage encompasses property, medical expenses and the liability. Property coverage allows for settlement of insurance sum in the event of your car being damaged or stolen.
Medical coverage undertakes to pay for overhauling of injuries and liability pays when you are responsible for damage or injury in an accident. The cost of car insurance depends on your age, the car you drive where you live, your driving record and the coverage included.
Types of car insurance:
There are various types of car insurance policies available today. It is left entirely to an individual’s discretion to select the right policy that is affordable for him to adopt.
This type of insurance is a mandatory for every driver. Liability insurance pays in the event of any accident when it is determined that the accident is a result of your fault.
It covers accidental physical injury and damage to property that happens to another person. This is of course the basic, minimum insurance requirement in most countries across the globe. Regular liability is not really all that much different than what a mechanic would get for coverage as in a garage liability insurance policy.
This type of insurance helps to pay for damages on account of collision with another vehicle, an object or car roll over. This policy covers all damages excepting that a deductible is required.
It covers everything that is not actually collision related. This policy pays for cost in the event of your car being stolen, hitting an animal or damaged by fire or weather conditions like hurricane, flood or storm. It covers situations and not accidents.
However this type of coverage is optional and usually purchased when the cost of the vehicle is more than $1000. Deductibles also apply and they may range from $250 to $1000.
Personal injury protection:
This type of policy is mandatory as it is covers cost associated as a result of an accident. It covers medicals expenses incurred for the treatment of persons injured in the accident no matter who is at the fault for the accident.
5. Uninsured motorist coverage:
This type of car insurance undertakes to pay for damages when the person injured is covered under the insurance but the driver does not possess liability insurance. This coverage varies from state to state depending upon the policy regulations and provisions.
6. Under-insured motorist coverage:
This type of insurance covers damages when the covered person is injured in an accident where the driver may possess insufficient liability insurance.
Before purchasing a car insurance you should be fully aware of the details of the insurance policy and its coverage as it can vary greatly from one place to another.
This is very essential to ensure that you are fully protected in the event of any accident to your car. Choosing the right type of policy safeguards you against unnecessary financial and emotional troubles – even if you own a car in Singapore or any other country for that matter.