The Essentials of Car Insurance

We can consider insurance an umbrella term for saving you from financial conditions. With car insurance, you get the same benefit of relying on insurance whenever something happens. When you own a car, you need to buy insurance to drive it in public places. The reason to have motor insurance is to protect yourself, your vehicle, and other people that may have had any type of loss or damage caused by an accident. This will provide financial compensation caused by your car to them and their property.  

Various insurance companies will provide you with Car insurance in Frederick MD. Choose a company or an individual coverage provider and get your car insured.

Types of Car Insurance

Third-Party

It is the basic insurance that is legally required by everyone who owns a car. It covers all the costs for your passengers, other people who may get affected, and their properties. But there is no cover for you, who owns the car, or the car itself.

For example, you were driving with some friends when you hit someone’s dumpster by accident, and everyone in the car got hurt as well as a lady got hurt. This insurance will cover the medical costs of your friends and the lady. Furthermore, it will also give cover to the owner of the dumpster but there will be no cover for your injuries. 

Third-party, fire, and theft (TPFT)

This insurance can be seen as an addition to the third-party insurance cover. With TPFT, you can get insurance cover for third-party as well as for your car. But it has restrictions. This insurance will provide you financial support only if your car is destroyed in a fire, gets stolen, or gets damaged due to any of these reasons.

For example, someone tried to steal your car and managed to drive away but later had an accident with your car. All this resulted in him damaging your vehicle and hitting a passerby. So, your insurance will cover the cost required for your damaged vehicle and medical bills for a passerby who got hurt. 

Comprehensive car insurance

With comprehensive insurance, you will get financial security for everything that concerns your vehicle, you, and the third party. This is the most beneficial insurance and can help you get out of any situation. 

This insurance can also be helpful if you are driving someone else’s car and get into an accident. This may not be included in some comprehensive insurances as the rules and policies are different with different insurance companies.  

There are a few things that comprehensive car insurance may or may not cover. Therefore, check the inclusions and their policy of insurance very thoroughly.

Check if you are covered for:                                                          

  • Stereo system, speakers, or GPS.
  • Personal belongings were present in the car during the accident.
  • Recovery or transport of the vehicle.
  • Damaged or broken windows, and stolen or lost keys.

Is it necessary to have insurance cover?

Yes, if you are found with an uninsured car, you may have to pay the fine, and there will be penalty points added to your driving license. Worst case scenario could be you have to go to court, and your driving license will get canceled. Therefore, it is always better to have yourself insured in all aspects.

Conclusion

So, the price you need to pay depends on the type of insurance cover you choose. Even though these are the three basic types of policies that will be common, there may be some features that are not included in the policy. It is always better to check what things are included, and what things have conditions applied for claiming.

The premium you pay for the insurance also differs on various factors. This includes your job, age, condition of your car, car model, and the people who drive your car. Considering these factors, you should choose insurance covers that satisfy your needs. 

Dragan Sutevski

Posted by Dragan Sutevski

Dragan Sutevski is a founder and CEO of Sutevski Consulting, creating business excellence through innovative thinking. Get more from Dragan on Twitter. Contact Dragan