Your car is one of the most important possessions you have, because aside from its value, it's also a necessity that you cannot do without. You can prepare for your car's future expenses, or unexpected maintenance during accidents, by buying Car Insurance policies.
However understanding how Car Insurance works can be difficult.
What is a Car Insurance?
This is a type of insurance that covers your car against theft, fire and damage to third parties depending on the type of Car Insurance that you have purchased. If you own a car, it is also required by law that you have your car insured before you drive it. Corresponding sanctions are given to violators of the law.
Types and costs of Car Insurance
Third Party Only Car Insurance (TPO)
This covers damage to third parties' property and a third party driver. This is the least expensive but the most basic insurance. It does not cover you or your car.
Third party fire and theft Car Insurance (TPF & T)
This covers your car against fire and theft. Your Car Insurance would help you with the cost in case your car is stolen or burned. There are specifications; however, that are not paid by most car insurances, like your negligence in keeping your car safe, and similar occurrences. You have to peruse these specifications, so that you would know whether it is covered or not. Understandably, this Car Insurance is more costly than the TPO.
Comprehensive Car Insurance (or Full Comp)
This covers comprehensively the first two types, third parties, theft and fire. It also covers you in cases when accidents happen. This is the most expensive Car Insurance because it covers almost everything: you, your car and any third party involved. Ascertain that these are covered though, by reading the details carefully before signing up, because there will always be exceptions to the rule.
Temporary Car Insurance or Short Term Car Insurance
This can be used in instances when you are driving the car for a short period of time. An example is when you are test driving a new car or driving it home. You may also use this type of Car Insurance when borrowing a car or when you allow your friend to use your car for a certain period. This insurance usually lasts from 1 to 28 days.
Multi Car Insurance
If you own several cars, then this type of Car Insurance would best serve you. Some companies allow you to purchase a Multi-Car Insurance instead of obtaining two single insurance policies for your two cars. Other companies offer discounted rates on these two separate policies too.
You have to browse and read the details of each of these options so you can choose one, which could suit your needs best. This type of Car Insurance is more expensive than the single policies but can be the cheapest if you own several cars. There are exceptions to this rule however, so you should always read the details before signing up.
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