Vehicle Insurance : What is vehicle insurance and what is commercial vehicle insurance and types of vehicle insurance

What Is Vehicle Insurance

Vehicle insurance is also known as car insurance, motor insurance, or auto insurance. This insurance is for Private cars, Motorizes two-wheelers and Commercial vehicles excluding vehicles running on rails. The insurance companies protects us against financial loss in the event of an accident or theft. In exchange for your paying a premium, the insurance company agrees to pay your losses as outlined in your policy. The specific terms of vehicle insurance vary with legal regulations in each region.

What Is Commercial Vehicle Insurance

A Commercial Vehicle Insurance is a customized motor insurance policy to cover for damages and losses caused to or by a commercial vehicle and the respective owner-driver. It is necessory for all businesses to buy a commercial vehicle insurance for their vehicles, such as for auto-rickshaws, cabs, school buses, tractors, commercial vans and trucks, amongst others. This could include damages and losses in situations such as accidents, collisions, natural calamities, fires, etc.

History Of Vehicle Insurance

A compulsory car insurance scheme was first introduced in the United Kingdom with the Road Traffic Act 1930. This ensured that all vehicle owners and drivers had to be insured for their liability for injury or death to third parties whilst their vehicle was being used on a public road. Germany enacted similar legislation in 1939 called the “Act on the Implementation of Compulsory Insurance for Motor Vehicle Owners.”

Source: History Of Vehicle Insurance.

What Is Cheap Vehicle Insurance

Cheap vehicle insurance is an insurance plan where you get the lowest price insurances. Sometimes, it is benifitable and good but cheap insurances are done by fraud companies. Those fraud companies do not give any claims at the time of need. So, I did not prefer to buy any cheap vehicle insurance because they are not trusted.

Types Of Vehicle Insurance

There are three types of vehicle insurance. So, read out carefully-

1. Full Vehicle Insurance

Full vehicle insurance is an extensive motor insurance plan that covers the insured person against both, own damages and any third party liabilities. It is also known as ‘own-damage or a ‘other than collision’ car insurance as this policy also protects you financially against any losses that might arise not due to collision. Full vehicle insurance covers any unforeseen incidents such as an accident, fire, theft or natural calamity.

2. Third Party Insurance

Third party insurance is also known as ‘act only’ insurance. It is the minimum legal level of coverage that is given by the insurance companies. It covers you if you damage someone else’s property or injure them while driving, and will cover your passengers too. The policy does not provide any coverage to the insurer.

3. Zero Deb. Insurance

Depreciation in motor insurance​​ often refers to the loss in value of an asset over time due to factors such as age, wear and tear, and obsolescence. Vehicles, in general, are depreciating assets. For example, a new car will cost more than an older one. Similarly, there is a certain depreciation associated with all the materials the car is made up of such as glass, plastic, metal etc. Each of the materials or parts have a different rate of depreciation.

It is a good idea to avail of zero depreciation for car insurance. With the help of it, you get maximum reimbursement during the time of claim and get the most out of your car insurance policy.

Source: Zero Deb. Insurance.

Question: What happens if you don’t pay your car insurance premium for your vehicle?

Answer: If you don’t pay your car insurance you will lapse in coverage. In most states, it’s illegal to drive without insurance, so driving uninsured could result in fines or license suspension.

Also read :- What is life insurance : life insurance history, benefits etc.

Also read :- What is Travel Insurance || Comman Benefits of Travel Insurance

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