Why Car Insurance or Auto Insurance ?

Let us first understand, why do we need Car Insurance or Auto Insurance ?

The answer is very simple, now a days Car Insurance is mandatory by law.  The insured vehicle (physical damage) Third parties (car and people, property damage and bodily injury) Third party, fire and theft. In some jurisdictions coverage for injuries to persons riding in the insured vehicle is available without regard to fault in the auto accident (No Fault Auto Insurance)

There are certain guidelines that buyers (I mean car owned persons) should be followed by the Car Insurance, while choosing the policy. Car insurance acts like a great friend at the time of crisis. It covers the losses made in an accident and thus saves you from paying out the huge sum from your pocket.

Benefits of Car Insurance:

All the states require a minimum amount of insurance. Car insurance can help offset the loss of huge sum in the following manner:

Car insurance provides benefits to survivors when an accident results in death.

Car insurance covers lawsuits, including legal fees brought against you as the result of an accident.

Car insurance covers the bills of vehicle repairs due to damage caused in an accident.

Car insurance covers damage caused by other than an accident for example, theft, fire, etc.

Additional discounts: Car insurance policies allow premium discounts for theft or for owning more than one policy with the same insurer. 

It also provides added advantage to extend coverage to others driving your car with your permission.

No Claim Bonus: If you do not make a claim during the policy period, a No Claim Bonus is offered on renewals provided you fulfill certain terms and conditions