Introduction
It is without doubt that your car is very precious to you. Apart from being the set of four wheels that gets you places, the car has some personal attachment with the owner and sentiments of pride of ownership and affection are quite natural. So if you love your machine, you would certainly want to have best cars insurance possible. It is vital to have an insurance that covers a wide range of claims on possible damages and/or theft.
Step 1
Now, you might be wondering that which type of insurance is a good insurance for your car. To answer that question, one needs to have a little better and in detail understanding of insurance in general and the information of types of car insurance available in the market today. The word insurance, in the English dictionary is defined as an action or means of ensuring or making certain. In financial terms today, it translates to a form of risk management where you pay a keep paying a small amount of money, usually monthly to an insurance company to cover any accidental and unforeseen damage to the property being insured. A life insurance, covers with giving compensation to the life of an individual, home insurance is for any loss at home or property and car insurance covers the damages and claims pertaining to the car.
Step 2
Your car's insurance can be of many types depending upon the policy of the country you reside in. However, there exists broadly three types insurance for the automobiles. First is the fully comprehensive auto insurance policy, which covers all kinds of cases like theft, accidental damage, fire, wear and tear and even losses in vandalism and terrorist attacks. These are the most popular form of insurances and covers accidental damage even in the cases when the other driver does not disclose insurance details of his/her vehicle. One thing to keep in mind is to check with the insurance company at what value they insure your vehicle. Some companies value the cars at 80% instead of 100% and in such cases, the reimbursement of repairs shall not be able to cover the actual repairs cost.
Step 3
The second type of car insurance is third party insurance which covers only for damages in case of accidents caused by you. It is the cheapest form of insurance and generally suited for old and inexpensive cars. There also exist some third party insurances which cover fire, theft and vandalism too.
The last of the types of cars insurance are for classic cars which are more than 25 years old. These cover the general maintenance cost associated with these old vehicles too. However there is a restriction on the number of miles it can be driven each year till the insurance holds valid.
Tips
Thus. choose from these broad categories when selecting the best cars insurance for your vehicle. Insurance companies do also have customised insurances covering specific cases which might be of relevance or importance to you. Always remember that having insurance is having peace of mind, and thus selecting the right one is important as it should serve you well when a mishap occurs.
