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Auto insurance: why is it necessary?

Automobiles have become a utility for all of us today. We spend quite a lot of time in our vehicles, commuting for our daily needs. Auto insurance is necessary as it guards us against damage caused by accidents or thefts. Auto insurance broadly offers coverage in three fields. These fields are, property, liability and medical. Damage to the vehicle and theft come under property coverage. Liability includes accountability for physical injuries and damage to the property. Expenses for treating injuries and other medical bills are a part of the medical field of insurance policies. Car insurance not only protects us from expensive claims in case of sudden mishaps but also gives coverage in a theft. It is not only necessary but also compulsory to have the insurance of the vehicle which is used on the community streets. So, car insurance is legally a must for everyone who owns the car. Accidents can never be foreseen, but we can prepare ourselves for them. Taking both damage and comprehensive policy is quite reassuring for people, as all their expenses are covered as per the guidelines of the policies. One can be fined, can get penalty points or can even be prohibited from driving without auto insurance.

Auto Insurance options and what they cover?

Based on the amount of coverage an insurance option gives, these are classified into three categories. These are as follows:

  1. Third party insurance: It covers the basic damages liable for road accidents. Although it is the most basic car insurance it is not always at the cheapest price. The price of the premium amount may vary based on certain conditions. At least the vehicle should have the basic insurance to be legally allowed to be driven on the road.
  2. Third party insurance along with fire and theft risks: This insurance type covers wider risks as compared to just third party insurance. Repair and replacement of a vehicle or its parts are offered in case it is stolen or damaged due to fire.
  3. Comprehensive insurance: Comprehensive insurance as the name suggests is the complete car insurance. Along with covering collision and theft, the policy supports almost all other events which might damage the vehicle. These instances include fire, road slides, twisted roads etc. It is not mandatory to buy a comprehensive car insurance policy. This is the widest extent to which an auto insurance company can bear.

auto inursance

How car insurance is helpful?

Car insurance acts as a shield by protecting us financially in case of mishaps. Only some people can afford costly repairs, medical care, and all other legitimate expenses which arise due to road accidents. So, car insurance is quite helpful for those who cannot afford such financial risks. It reduces financial stress a person might face if met with an accident. Other than safeguarding us sometimes insurance policies also offer no claim bonus facility. This facility reduces the amount of premium, thereby helping the customers by providing more coverage for less amount. Auto insurance not only eases out our loss but gives us financial stability. Economic growth of an economy depends on many factors, one of which is trade and commerce. Auto insurance definitely promotes trade and commerce. So, we can say that auto insurance is helpful in maintaining economic growth also.

Not every insurance company offers complete coverage in auto insurance for luxury cars. If you own a luxury, antique or collector car then you can get the best and premium insurance policy for it at insurpedia.com. Do visit the website today and get your vehicle insured.

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