ALL ABOUT CAR INSURANCE AND WHY IT IS VERY NECESSARY TO HAVE A CAR INSURANCE

CAR INSURANCE AND WHY  IT IS COMMON 

CAR INSURANCE | DEFINITION, TYPES AND BENEFITS OF CAR INSURANCE

Car insurance as the name implies is an insurance that has to do with cars, autos, vehicles or motor which are all the same. This insurance is used to provide safety against damage or body scratch or damage resulting from traffic collision.

In addition, most car insurance includes theft as part of its car/auto insurance cover so that car/auto insurance may/must include damage (natural conditions, or man made) and theft. 

Upon taking this kind of insurance policy it gives you an edge over troubling yourself for replacement thereby putting the whole burden and financial aspect on insurance company, the insurance company will pay for all some of the damage of the vehicle. But take note that it depends on the type of cover of the company should take all the burden or relieve you of just part of it.

DIFFERENCES IN COUNTRY

Car/auto/vehicle insurance policy differs from country to country as not every country practice the same legal system, so there causing a little change in the insurance policy.

United Kingdom (UK): In the UK you must have motor insurance to drive your vehicle in the UK Roads. Third party insurance is the legal minimum requirement. This means you are covered, if you have accident causing damage or injury to any other person, vehicle, animal or property. It doesn’t cover any other cost like repair to your own vehicle. If you are in an accident causing damage or injury you must give the below mentioned to insurance company:

1. Your name

2. The vehicle registration number and if the vehicle isn’t yours, you must give the name of the person and address.

3. You must report the incident within 24 hours

4. You must report the accident to your insurance company even if you are not planning to make a claim

CAR INSURANCE

Germany: it has been compulsory to have third party personal insurance before keeping a motor/vehicle in all federal state. Every car owner has the freedom to take out a comprehensive insurance policy. All kinds of vehicle coverage are offered by means of numerous personal insurers. The amount of insurance contribution is determined by several region, the type of car or the personal way of driving. There's no requirement for a car owner to have any third party liability insurance however other types are available and from time to time beneficial. There is full comprehensive, covering all damages or injuries done to your own car, another car or person or object. There is also partial coverage for theft, fire, and other sorts of damage.

Canada:     In Canada, all province have some kind of no-fault insurance available to accident victims. The difference from one province to another is the extent to which sort or no fault is emphasized. Basic auto insurance is mandatory throughout Canada with each province government determining which benefits are included as minimum required auto insurance coverage and which benefits are options available for those seeking additional coverage, accident everywhere except for new found land and Labrador.

United States:      In the states, vehicle insurance is designed to cover risk of financial liability or the loss of a motor vehicle the owner may face if their vehicle is involved in a collusion resulting in property or physical damages. Majority of the states require a car/vehicle owner to hold a few minimum level of liability insurance. In the United States as at the time of writing this article some states do not require the vehicle owner to carry car insurance and they include:


1.     Virginia:    where an uninsured motor vehicle fee may be paid to the state

2.     New Hampshire and Mississippi offers vehicle owners the option to post cash bonds

A monthly fee often called an Insurance premium is paid by a motor vehicle owner to the insurer. The privileges and immunities clause of articles of the US, constitution protects the rights of citizens I each respective state when traveling to another.

Nigeria:      In Nigeria, a lot of people have wrong perceptions about auto insurance policy and do not buy into the idea of insurance because they think it’s unnecessary.

However car insurance like any other insurance cover, is used to protect the individual and cover any financial loss which may occur from operating regular motor vehicles such as cars, buses, motor vehicles etc. and move also an auto insurance certificate is a compulsory document for all vehicle owners to have in Nigeria.

With the following few steps which will be outlined below, it will serve as a guide to proper insurance cover:

1.     Research and contact insurance component in Nigeria or email them
2.     Choose a type of car insurance:

        You must be required to fill some forms which include the following:

·        KVC

·        Motor proposal form

·        Motor insurance physical inspection

·        Third party Auto Insurance

3.  Two types of car policies will be offered


4.  An annual premium will be charged on the policy depending on the type of vehicle


5.  To buy a comprehensive insurance for your vehicle most insurance companies in Nigeria will change between 4-5% of the total value for one year period.


Types of Car Insurance Include:

1) Liability Insurance:

Next >>> Read Liability Insurance in details Here: Liability Insurance