Insurance for car also known as auto insurance is an insurance policy where the insurer (insurance company) protects the insured (you) in the event of an accident, theft, loss, or damage. This protection is valid upon paying an agreed annual premium according to what is outlined in the policy.
Auto insurance always comes in to protect the car you’ve purchased. You can browse through this article if you are interested in protecting your car as it contains what auto insurance is, the types of auto insurance, how to get the best coverage for your vehicle, and the list of the best car insurance companies in the world.
The major purpose of auto insurance is to ensure you don’t have to bear the sudden financial loss in a situation where accidents occurred, or your car was stolen, or damaged by acts of nature.
Types of Auto Insurance
Auto insurance is of 3 types:
Third-Party Insurance: This is the most basic type of auto insurance that you need for your car. It is the type of insurance policy that protects you only from damages and losses caused to a third party but not your own.
Comprehensive Insurance: This type of insurance policy covers both loss and damage to third parties and to you and your vehicle as well. It provides comprehensive coverage for death, bodily injury, accidental third-party property damages, and those sustained by insured cars.
Full glass coverage falls under comprehensive insurance and it is a no- deductible coverage that covers your windshield, windows, and sunroofs in the event of damage.
It is good you know that third-party insurance is mandatory but you can opt for comprehensive cover to get wider protection.
Third-party insurance is the cheapest car insurance but comprehensive insurance is generally the best insurance for a car to have as it covers full protection.
Collision Insurance: This type of insurance policy covers you for accidents or damages that happen to your vehicle as a result of a collision with another vehicle or object such as a tree, or pole; basically, something that is your fault.
What Insurance for Car Covers
Auto insurance covers the following:
Property Damage: The insurance policy can cover the damage to your car, another driver’s car, or even damage caused to others’ property such as buildings.
Bodily injury: The insurance policy covers liability associated with injuries or death that you or another driver causes while driving.
What Insurance for Car Does Not Cover
It is important you know some of the things auto insurance does not cover and they are the following:
Natural Disaster: auto insurance does cover damages that occur to cars as a result of an earthquake, flood, hurricane, or any other natural disaster. These events are regarded as “acts of God” and excluded from the insurance policy.
Theft of Personal Belongings: The auto insurance only covers your damaged cars and not your valuables which were stolen in the process.
Carelessness: You may not get your claim from the insurance company if the loss to your car was due to carelessness on your part.
Someone Else’s Car: You cannot make a claim if an accident occurs while you’re driving someone else car. The insurer will only pay for claims that are made for the car registered under the policyholder’s name.
Note: You can have two auto insurance policies on one vehicle. Your insurance may not want to cover the same vehicle twice but you can buy a second insurance policy from another insurance company.
Best Car Insurance Companies in the World
Here are the best car insurance companies in the world:
- American Family
- Auto-Owners
- Nationwide
- USAA
- Geico
- Travelers
- Westfield
- Erie
- Progressive
- State Farm
Finding a great insurance company can save you money and frustration which is the reason we’ve provided you with the above list of the best insurance companies in the world. You can browse them for more information.