Car Insurance

Insurance Policy covers risk of any unusual damage or loss in respect of the goods insured. All expensive capital goods should be insured. Your car is one such item. When insured, the Insurance Company takes on certain liabilities and will compensate you monetarily, in respect of unusual damage arising from an accident, theft, fire etc., to your car, during a specified time period, in return for a certain charge, known as the insurance premium.

The Insurance Policy does not cover damages on account of usual wear and tear in the vehicle. There are generally two schemes available for insurance of your car, the comprehensive and the third party insurance.

In order to register your car and apply for license plates, you must provide proof of insurance. This guarantees that your vehicle is covered in the event of an accident. You can select from many levels of auto insurance to suit your personal requirements, from basic coverage that only covers the other vehicle in an accident, up to full coverage, covering any vehicle involved and even providing medical benefits when necessary. Always discuss your coverage in depth with your agent.

Be careful not to over insure your vehicle. If you drive an older vehicle that has lost most of its resale value, opting for basic coverage, that only covers the other vehicle in an accident, can save you hundreds of dollars each year. Under insuring can be just as expensive. Be aware of the “blue book” value of your vehicle when your shopping for insurance.