How Does Car Insurance Work?

Wole.K

Active member
This how car insurance policy work, in you need vehicle insurance policy to protect your car, your passengers and your self . It also cover's any of your assets, such as your savings and home, and also comply with state law.

Understand your present insurance coverage

Make use of your current insurance coverage and limits as a starting up point. After that, adjust your insurance coverages as required to match your way of life-which may be different than it had been when you initial bought the policy.

For instance, if your kid or brother starts driving the following month, you may consider including him or her to your own personal policy now. Or even, if you just purchased a new vehicle, you may choose mortgage payoff insurance coverage, to ensure that if your vehicle is stolen, you will still have help to pay off your loan.

Choose what you want to protect, and then decide on your coverages. Below are few vehicle insurance coverages that might be obtainable in your state:
  1. Cover the expense of a hire car should you have a claim
  2. Pay off your own loan/hire in case your car is declared stolen and not recovered
  3. Cover repair and healthcare expenses for car accident that is caused by a car owner who does not have insurance or does not have enough
  4. Protect your vehicle against damage caused by bumping into an animal or other event, such as theft or a fire
  5. Protect your vehicle towards damage caused by a accident by another car
  6. Protect your property in case there is a lawsuit.
 

jhon paul

Member
Buying car insurance is easy especially for shopping online car insurance typically covers your vehicle the damage that might cause to other vehicles to the property of other drivers. A variety of coverages are available designed to protect against for different type of claims. if you might need to make a claim for a collision with other vehicle objects or persons property. You can make a claim if your car is vandalised stolen or damaged.
  • Coverage is also available to help cover claims of medical expenses for you
  • the price you pay for the car insurance depends upon the your age,occupation,driving record postcode.
 

Alexandoy

VIP Contributor
The comprehensive car insurance here is good because it covers even the damages that can be caused by the so called “act of God” like flood or earthquake. Our 2 cars are insured with the comprehensive package. The premium is $200 a year for each car. But now we have stopped the insurance because we learned that the full coverage is only for cars that are 5 years old and younger. Our cars are both 7 years old now which means we are going to have a problem when we claim for the insurance coverage – we have to shoulder half of the cost of repair.
 

cmoneyspinner

Active member
Not sure how car insurance works in other countries but in America I found ways to save on my car insurance.

If I bought a car through a dealership and they financed the car loan, I did not have a choice. Comprehensive insurance coverage was required.

However it I bought a used car that had a low blue book value I just pur the minimum amount of car insurance required by law.

For many people, because of the pandemic they were not ever driving their cars. So they dropped the insurance. Why pay insurance for a car that's parked?
 

Carson20t

Active member
Thanks for this article it is quite informative.So it is true that car insurance vary in each country but what is important to note is the categorization which is either as a comprehensive insurance and third party insurance.You are not compelled to register for any of the two selected for you forcively but it is with no doubt that the comprehensive insuarance has alot of advantages and services to cover yoo incase of any unforeseen accidental circumstances.

At the end of the day its mandatory in my country that you should have an insurance cover for a vehicle active.Nobody hopes for any bad situation bit we have to have insuarance to reduce on costs Iin case of any accidents.
 

Mandy96

Valued Contributor
Car insurance’s main job is to provide the necessary coverage for the car against any damage that might befall it. In fact some part of the policy covers the replacement of the vehicle if it should get lost or stolen. But one has to know that there are terms and conditions that guides it in order to avoid misunderstanding
 

Wisdom01

Valued Contributor
I think with car insurance policy you could likely cover your car against any form of risk that might arise that could put the said person car in big danger , like for instance accident, theft , etc, it's very important to get the policy so you would be protected against any form of risk like that
 
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