How Many Areas Does Your Car Insurance Covers

Have you ever heard anyone saying “Car is an Elephant”. This phrase signifies the amount of great expenditure a car demands for its maintenance. And imagine, your car being lost or damaged in an accident or otherwise. It is too burdensome to even think about it.

The business world came up with car insurance as a solution in 1700 century when Lloyd in London came up with marine insurance policies. Though the concept of insuring vehicles was started by Chinese as far back as 3000 B.C when merchants started to insure their goods for any losses due to sinking or pirates attack, while sending their boats up and down the rivers in China.

As the civilization progressed, there were more than one way through which vehicles can be damaged, especially the cars since they outnumbered any other type of vehicle. This raises the question, what and how many areas can one expect to get covered, in his car insurance policy?

Car insurance is now mandatory under law, in almost every country. There are few common covers in the insurance policy and then, there are some extended ones. Let see the two categories. 

General Car Insurance Covers

Third-party only

This type covers the damage caused to the other people or their cars, but no claim can be made for the damage of your own car. This is a bare minimum policy required by law.

This is what third-party insurance policy would generally cover:

  • damage to other vehicles
  • injury to other people and animals
  • damage to property

This may be the basic one, but that doesn’t mean it is any cheaper. The price depends upon many factors, including, but not limited to, amount of claim. This type of policy is deemed suitable in the following situations:

  • one does not have a “no claim bonus”
  • area of one’s residency or work is being considered as a high-risk zone in terms of crime.
  • The worth of one’s car is less than $1300 and they can easily afford another car in case of damage in the accident.

Third-party, fire and theft

This type is the third-party insurance covers plus policies for damage against fire and theft. They cover conditions where damage is caused as an attempt of theft like damage to window while thief tries to get in to the car.

The policy covers the repairs and full vehicle replacement if the car is stolen or fully damaged and there is no scope for mending.

Extended Car Insurance Covers

There are some country or state-specific threats which requireto be covered under a car insurance policy. The crime rate and geography give birth to some area specific damage conditions that your car might experience such as landslide prone areas. And thus, this decides the amount of claim.

A comprehensive car insurance plan is a most suitable choice if you want to cover almost every potential threat to your car along with yourself, while you are driving.

This cover encompasses the following, completely or partially

Accidental Damage

 

Intentional Damage

 

Storm or Flood

 

Fire

 

Theft Earthquake
Emergency Accommodation, Transport and Repairs Legal Liability Towing Costs
Additions to the Car Contents inside the Car Immediate Replacement Car
Maritime Liability Hire Car Following Theft Counselling Services

Hire a car in case of theft and certain other conditions may be specific to some insurance companies but it is like a cherry on the top.

The list of covers here is just to give an overlook of what one can look for while purchasing a car insurance. One should compare different policies online or in person to make sure the policy covers all what one intended.

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