Having insurance for your vehicle is mandatory and yet most people do not fully insure their vehicles. This is perhaps mainly attributed to the fact that they may not understand the terminologies used by insurers.
Insurance is vital as it protects you and your vehicle in the event of a catastrophe or accident. Here are some major policies that you should have.
The Third-party policy
The first and most basic car insurance policy is the Third-party only T.P.O policy and it is a requirement that all car owners should have it. It not only covers physical damages to your car, but also liability for injuries, pain, and suffering to others. TPO also covers any third-party damages and medical costs.
The Third-party and theft policy
Besides that, there is the Third-party and Theft (TPF&T) policy. This all-party insurance coverage in case of a car accident. It also coverscar theft and damage during the theft. Additionally, it takes care of fire damage in case it happens.
The Comprehensive policy
The third type is the comprehensive policy that covers a wide-range of third-party users. This includes theft, fires, vandalism, along with other costs such as personal effects,accidental damage, windscreen coverage, medical expenses.
Steps to get your insurance
After understanding the type of car insurance policies there are in the market, you need to decide how you can go about attaining your insurance.
- The first step to getting a car insurance policy is to start by identifying the best insurance company that will best fit your needs and one that is easily accessible in case of any incident.
- Afterward, you’ll have to visit them and fill in the necessary application form. While filling it, give accurate information because if not then your insurance is invalid and may result to your policy being withdrawn. The application form will have a number of questions that will focus on different areas in your life. All of which will help insurers determine your insurance premium. The questions may include your vehicle type and your age. This helps the insurer because the cost of insuring a posh sports car will not be the same as the cost of insuring a small car. As for age, being a young and inexperienced driver can result in higher costs.
- Moreover, you might be asked about the manner in which your vehicle is used. If your vehicle is used for business purposes, then it may have a higher than mileage compared to it being used for commuting between a single place of work. So, it may have a much higher premium.
- You might also be asked if you will be the one driving the vehicle or if it will be driven by someone else who might be a bit inexperienced. They might also ask you the condition of the road you constantly use in order to quote a premium that will be best for you.
- Lastly, they may ask you about your driving history and the area of the locality where you live. Having penalties on your license, convictions, rushes, and claims can increase your premium. Note that living in a crime prone zone may actually impact your insurance cost negatively.
Car insurance may be tiring if you keep paying it but have never enjoyed its benefits. However, having insurance is beneficial to you, because accidents do happen even to the best of drivers. Car insurance gives you an escape route if by any chance you find yourself in a situation where you have hit someone with your car and have had an accident. A car insurance policy can help cover repairs to your vehicle and medical costs in the event of an accident.