What you should know about car insurance


Ok so what is car insurance? Well, it is basically an agreement between you and your car insurance company to protects you financially from paying a premium, in the unfortunate event that your car is damaged in an accident or the theft of your car, in exchange for a monthly or yearly car insurance plan payment, according to your signed policy.

There are different types of car insurance, and you will have to know and understand them to help you choose the one that suits you best.

Here is a list of the different types of car insurance:

Auto property insurance – This helps protect against car damage or car theft.
Auto liability insurance – this helps protect against official responsibly to others for either car damage or physical injury.
Auto medical insurance – this covers you for the cost of medical expenses, including the treatment of injuries, therapy and other types of medical needs.
Understanding car insurance basics: It very important to understand the basics of your car insurance policy car insurance policies might be different in some ways but there are some aspects that mostly remain unchanged.

Some of these basics are listed below:

Both you and your family members included in the car insurance plan will be covered by your policy and you are also covered regardless of who’s car you are driving, yours or someone else’s if you have their permission to drive it.
Your car insurance policy will not automatically cover you for using your car commercially to make some extra cash through car sharing services such as Uber or by renting out your car to a 3rd party for cash. However, this could be an additional option at an additional cost, offered by some car insurance companies.
Anyone else not included in your car insurance plan will also be protected if they have your permission to drive the car.
Is it compulsory to have a car insurance policy?

This depends on what country or state you are, most western countries require you to have some level of car insurance, what specific type would depend on the specific law of that country. However, regardless of the law, it is highly recommended for you to get some level of car insurance protection because it not always just about you, most of them would also cover your family members. So, make sure you buy a policy and enjoy a peaceful safe drive

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