Accidents happen. This is a fact of life. This is why it’s so important to have car insurance. You also need to know the true value of how car insurance works to be able to benefit from it.
Before buying car insurance you need to consider a variety of factors. The insurance company will use a number of factors to decide on your insurance policy, such as:
- What kind of car you have
- Your driving record
- The amount of money you are willing to pay
Types of car insurance policies:
This is the most extensive and expensive cover. This insurance is designed to provide cover for all eventualities, including accidents, theft and third party damage.
Third Party, Fire and Theft
This is a less expensive type of cover and is suitable for individuals looking for insurance cover that will pay for third party costs.
Third Party Only
This is the most basic type of cover and you are covered for liabilities resulting from accidents with third parties.
What it means to get car insurance policies:
Car insurance policies are designed to protect you against financial loss if you are in an accident. The contract should stipulate the terms under which you will receive or pay out for an accident, theft or damage covered by a third party.
Once you accept the quote you agree to pay the premium and the insurance company agrees to pay your losses as defined in your policy.
You need to make sure that you read your policy carefully and that you understand what you are covered for and what is excluded in the policy.
In the event of an accident or your car getting stolen or damaged you need to follow the claims process to make sure that you are compensated adequately.