Different Types of Car Insurance

Different Types of Car Insurance

Car Insurance:

Vehicle insurance is also known as car insurance, motor insurance, or auto insurance. Its main use is to provide financial protection against physical damage or injury resulting from traffic collisions. Insurance for cars may additionally offer financial protection against theft, damage such as natural disasters, and damage with stationary objects.

What is the purpose of Insurance for cars?

Without insurance, you have to pay costly claims from your pocket. This could put your property at risk. In this regard, you have to discover the best car insurance company that offers the best deals. When you are finding for insurance for a car company keep in mind the following points.

  • Buying an insurance car is a method to protect your asset.
  • Requirements of Motor Third Party liability insurance under the Motor Vehicles Act.
  • Comprehensive insurance looks after your vehicle in case of theft, fire, or tragedy.

Features of Car Insurance:

  • Repairing Cost
  • Replacement of car parts
  • Damage due to own mistakes
  • Damage due to third-party mistakes.
  • Damage due to fire and theft
  • Flood and hailstorms.
  • Riot and Strike.

Types of Auto Insurance in Pakistan:

Different types of insurance for cars are as follows:

  • Comprehensive  Insurance
  • Third-party Liability insurance
  • Collision Insurance

Comprehensive Insurance:

Comprehensive insurance is also known as “Other than Collision” which can help pay the costs of damage to your car for non-collision-related claims but this coverage is optional. You have to add it on top of other coverages if you are financing your car your lender will likely require it. Your comprehensive insurance pays for damage caused by:

  • Natural Disasters
  • Vandalism
  • Theft
  • Fire
  • Falling objects
  • A civil disturbance
  • Hitting an animal
  • Glass damage

Your comprehensive car insurance policy will not help cover:

  • Damage to a car from a collision
  • Medical expenses
  • Legal fees
  • Loss of income
  • Damage to another person’s car from a collision
  • Any property was stolen from your car

Third-Party Liability Insurance:

Third-party insurance is a form of liability insurance. The first party is responsible for damages and losses caused by those damages. One of the most common types is automobile insurance.

Third-party offers coverage against claims of damage caused by a driver who is not the insured, or the principal, and is therefore not covered under the insurance policy. The driver who caused the damages is the third party. There are two types of automobile third-party liability coverage.

  • Bodily injury liability cover costs included hospital care, lost wages, and pain suffered due to the accident.
  • Property damage liability covers costs resulting from damages to or loss of property.

Benefits of Third-Party Insurance:

As per low requirements, drivers must carry the least amount of bodily injury and property injury liability. No-fault laws were established to reduce ordinary injury or the number of claims for pain and suffering.

Both types of third-party insurance are essential, specifically for individuals. The more money and assets an insured has the higher the limit should be for each type of liability coverage.

Collision Insurance:

Collision insurance covers damage to a vehicle from another car collision with an object such as a fence and single-car rollover accidents. Weather conditions and natural disasters are not part of collision car insurance.

Collision car insurance typically did not cover:

  • Injuries to other drivers
  • Vandalism or theft
  • Accidents are caused by animals.
  • Auto damage from collisions.

Protect yourself and others. The right car insurance quotes can protect you and your family members