Types of Car Insurance At present, different types of cars are driven on the road. As a result, the risk of an accident at any time has increased. A car owner has to face different types of risks related to the car. Such risks can be divided into five categories.
(1) Publicity risk;
(2) The risk of loss of property;
(3) Fire risk;
(4) Theft Insurance
(5) Risk of collision or accident.
Various types of car insurance have been introduced to compensate for this risk.
Types of Car Insurance is Discussed Below:
1. Public liability insurance:
No person or persons were injured or killed in the accident due to the driver’s fault. In case of failure, the insurance policy signed by the car owner for the purpose of paying his financial compensation is called liability insurance. ERP assumes public responsibility on behalf of the insured owner by the policy. As a result, if someone is damaged by the car, the responsibility for compensation falls on the insurance company instead of the car owner.
2. Property damage insurance:
In many cases, the car can ruin the property of the person elsewhere due to the fault of the driver, for which the owner of the car enters into an agreement with the insurer to reduce the liability for the loss is called property loss insurance. Because if the property is destroyed by the car, the responsibility falls on the owner of the car. By this policy, the insured guarantees compensation to the owner of the motor vehicle for his own and others’ damaged assets.
3. Fire insurance:
In the event of a fire in a car due to various accidents or political instability, the owner of the car and the person who collects the fire insurance in advance with the insurer is called a fire insurance policy. Such insurance policies can be of valued and unvaluated value. If the motor vehicle is damaged due to fire by such insurance policy, the insurer assumes his responsibility.
Related: Definition Of Vehicle Insurance
4. Theft insurance:
The insurance policy through which the insurer guarantees the theft compensation if the car owner’s car is stolen is called a theft insurance policy. In this case, the premium rate is determined by considering the region and the price of the car.
5. Collision or Accident Insurance:
An insurance policy is an insurance policy that guarantees financial compensation for damage caused by a motor vehicle collision or accident. The insurance company assumes the liability for compensation under such insurance policy if the vehicle or other property is damaged due to collision or collision with an object in a fixed or moving corner. And for example in the product.