Car insurance is an agreement between the insured and insurer whereby the insurer compensates the insured for losses defined in the policy. In layman’s terms you pay insurance premiums to an insurer and they cover you for losses either as a result of theft or an accident.
Features of Car Insurance
- Comprehensive car insurance protects your car from any man made or natural disasters such as hijacking, theft, riots, earthquake, floods etc, in addition to third party’s claims/damages.
- Third party ,fire and theft insurance provides the driver of the vehicle cover for any legal liability and damages as a result of an accident for which the driver is responsible, it doesn’t however cover the insured’s own vehicle and this loss will funded for by the insured. In addition it covers the vehicle against theft and damages resulting from fire.
- Third party Insurance covers the insured against an legal liability and damages as result of an accident for which the insured is responsible. It is also the cheapest of the 3 options available.
Advantages of Car Insurance
- Replaces your vehicle if its stolen
- Pays for your vehicle to be repaired in the event of an accident
- Pays for weather damage such as hail damage
- Removes the risk of self-insuring your car
- Covers you against legal claims as a result of a vehicle accident
How Do You Qualify for Car Insurance?
- Be over 18 and have a valid driver’s license