Who gain more when you insure your car?

[Richee84]

The word insurance is a no no way to the hearing of some people. This is simply because more people especially the low level class have little or no knowledge about the benefit derive from insurance generally.

There are different type of insurance policy which include life assurance, other life and general business. Car insurance happen to fall under general insurance policy and their are three major type of car insurance policy we can buy.

I will like us to look at the comprehensive car insurance which cover the car from any form of accidents, fire, theft etc. The policy holder is expected to pay a significant amount base on the purchase value of the car to insure the car for a period of one year and after one year if nothing happen to the insured car, they will have to pay another money to insure it again the following year.

But if anything happen to the car within the insured year, the insurance company will have to indemnify back to the policy holder the same kind of car but if nothing happen to the car for a year, that means the policy holder Will have to keep paying that significant amount yearly to protect the car.

Is it therefore advisable to keep paying for the car insurance policy every year and gamble your money with the insurance company to take?

 

[LucasWilliam]

When you insure your car in Texas, both you and the insurance company stand to gain certain protections and benefits.

As the policyholder, you gain financial protection in the event of an accident or other covered incident involving your vehicle. This can include coverage for damages to your vehicle, medical expenses, and liability for damages or injuries that you cause to others. Having car insurance can also give you peace of mind and protect you from financial loss if something were to happen to your vehicle.

On the other hand, the insurance company also stands to gain by providing coverage to policyholders. The insurance company collects premiums from policyholders and uses these funds to pay for claims made by policyholders. This allows the insurance company to manage its financial risk and stay financially stable.

Overall, car insurance serves as a mutual agreement between policyholders and insurance companies to provide financial protection and security in the event of an accident or other covered incident involving a vehicle.