Auto insurance is a category of insurance that covers all forms of vehicles for both non-public and business uses. It also covers motorcycles and tricycles.
Auto insurance is one of the compulsory insurance classes. Anyone using a motor vehicle on the public highway must have it.
Auto insurance is the most common of all known classes of insurance. It is designed to protect the insured for loss of or damage to his/her vehicle.
Types Of Auto Insurance
1. Comprehensive Auto Insurance
Comprehensive auto insurance is an insurance coverage that helps pay to replace or repair your vehicle if stolen or damaged in an incident that's not a collision. Comprehensive actually covers damage from fire, vandalism or falling objects such as tree.
2. Third Party Auto Insurance
The policy of third party auto insurance covers death, accidental injury and damage to the property of a third party.
Why do we need auto insurance?
- Auto insurance is compulsory; its in the Law! (Road Traffic Act,1950)
- It Provides replacement cost of damage or theft of your car
- It provide financial support for you when you damage other people’s property
- Reimbursement of litigation cost
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