Car insurance doesn’t only protect your car in the event that you get into an accident. It also
protects you
— from financial liability, medical expenses, and also from legal consequences. … All but two states require you to have auto insurance so that you can pay for the damages you’re liable for after a car accident.
Why is motor vehicle insurance necessary?
Risk Covers like car insurance is
to protect us from unforeseen events and unplanned liabilities
. Anyone can get stuck on the road with their car after an accident, car engine failure due to rains or theft of the vehicle. In any of the cases, having a car insurance policy will be a savior.
What is motor insurance and its importance?
Motor Insurance is a type of insurance policy which
covers your vehicles from potential risks financially
. Policyholder’s car or two wheeler is provided financial security against damages arising out of accidents and other threats. In India, motor insurance is mandatory.
What are 3 reasons you need auto insurance?
- To compensate you for an accident caused by someone else.
- So you can compensate someone else for an accident you caused.
- To get your car fixed no matter who’s fault the accident is.
- To protect your assets.
- To protect your auto lender.
- It’s required by state law.
- Summary.
- Read More:
Is insurance of vehicle compulsory?
The Motor Vehicle Act of 1988 makes
it mandatory for all vehicle to be covered under an appropriate
insurance policy before they can ply on the road. … The minimum requirement in terms of insurance is that a vehicle must at least have a third party legal liability insurance before it can be driven on a public road.
What type of insurance is compulsory for motor vehicles?
COMPULSORY THIRD PARTY LIABILITY INSURANCE
. What are the brief features of CTPL? It is a compulsory insurance that seeks provide cover for death and/or bodily injury to a third party. It is a pre-requisite for the registration of one’s motor vehicle with the Land Transportation Office.
What are the main features of motor insurance?
- Damage or loss to insured vehicle. In case your vehicle is damaged due to an accident, fire, or self ignition, you are protected. …
- Personal accident cover. …
- Large network of garages. …
- Third party liabilities. …
- No claim bonus. …
- Quick and hassle-free process. …
- Customer support.
What are the principles of insurance?
In the insurance world there are six basic principles that must be met, ie
insurable interest, Utmost good faith, proximate cause, indemnity, subrogation and contribution
. The right to insure arising out of a financial relationship, between the insured to the insured and legally recognized.
What are the principles of motor insurance?
In motor insurance principle of Indemnity is of two types:
one for Total Loss and Constructive Total Loss (CTL) and theft claims and the other for repairs claims
. For TL/CTL/Theft claims the principle of insured’s Declared Value (IDV) is applied. Â IDV does not take into consideration market value or depreciated price.
What states do you not need car insurance?
New Hampshire
is the only state that doesn’t require residents to have insurance, or even prove they could cover their liability in an accident, according to the Insurance Information Institute and Property Casualty Insurers Association of America.
Why should you get insurance?
When you buy insurance,
you transfer the cost of a potential loss to the insurance company in exchange
for a fee, known as the premium. … Insurance helps you: Own a home, because mortgage lenders need to know your home is protected. It covers you for repairs and replacement of any damage that’s covered in your policy.
What are the disadvantages of auto insurance?
- The coverage is not enough to cover more serious accidents. …
- Drivers won’t be able to fix their cars after a collision. …
- Drivers can remain without their cars after a claim. …
- Bad customer service. …
- High deductibles.
What is minimum car insurance?
Every registered car on Australian roads must have a minimum level of cover called
Compulsory Third Party (CTP) insurance
(otherwise known as Green Slip insurance in New South Wales). This means if you drive your parents’ car and become involved in an accident, the injury or death of a third party would be covered.
Which insurance cover is compulsory under motor insurance policy?
Third-party insurance
is compulsory for all vehicle-owners as per the Motor Vehicles Act. It covers only your legal liability for the damage you may cause to a third party – bodily injury, death and damage to third party property – while using your vehicle.
What are the 4 types of insurance?
- Home Insurance. As the home is a valuable possession, it is important to secure your home with a proper home insurance policy. …
- Motor Insurance. Motor insurance provides coverage for your vehicle against damage, accidents, vandalism, theft, etc. …
- Travel Insurance. …
- Health Insurance.
What are the 3 main types of insurance?
- Life insurance. As the name suggests, life insurance is insurance on your life. …
- Health insurance. Health insurance is bought to cover medical costs for expensive treatments. …
- Car insurance. …
- Education Insurance. …
- Home insurance.
