What is motor insurance and its types?

Six common car insurance coverage options are: auto liability coverage, uninsured and underinsured motorist coverage, comprehensive coverage, collision coverage, medical payments coverage and personal injury protection. Depending on where you live, some of these coverages are mandatory and some are optional.

What are the types of motor insurance?

Types of Motor Insurance Policy

Third-party insurance policy: Third-party insurance policy offers liability cover. … Comprehensive motor insurance policy: This type of motor insurance policy covers both own damage of insured vehicle as well as third party cover.

What is motor insurance and types?

Motor Insurance deals with the insurance covers for the loss or damage caused to the automobile or its parts due to natural and man-made calamities. … It provides accident cover for individual owners of the vehicles while driving and also for passengers and third-party legal liability.

What is meant by motor insurance?

Motor insurance is an insurance policy that covers the policyholder in case of financial losses – resulting from an accident or other damages – sustained by the insured vehicle. A comprehensive motor insurance policy covers damages to third-party and third-party property along with compensating for own losses as well.

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What are the 5 types of car insurance?

5 Types of Car Insurance Coverage Explained

  • Liability Insurance.
  • Collision Coverage.
  • Comprehensive Coverage.
  • Personal Injury Protection.
  • Uninsured /Underinsured Motorist Protection.

What is first party insurance coverage?

First-party insurance is insurance that covers the losses of the person named on the policy. The policyholder may be a company, an individual, or a group of individuals of a particular class such as employees of a company, a person’s family, or occupants of a particular vehicle.

What are the features of motor insurance?

Car Insurance Key Benefits & Features

  • Protection from loss of car or damage to your car.
  • Unlimited Liability for Third Party death/ injury Claims.
  • Indemnity for third party property damage up to a limit of Rs. 7.5 lakhs.
  • Personal Accident Cover for you, your paid driver and the occupants in the car.

What are the 3 types of car insurance?

What are the different types of car insurance?

  • Liability coverage. …
  • Collision insurance. …
  • Comprehensive insurance. …
  • Uninsured motorist insurance. …
  • Underinsured motorist insurance. …
  • Medical payments coverage. …
  • Personal injury protection insurance. …
  • Gap insurance.

What is motor insurance and its importance?

Motor insurance cover body injuries, damage to the vehicle, theft, payment of medical bills. A quality motor insurance may also temporarily replace income for an insured person who may be unable to work as a result of an injury from a fatal accident. … In such a time it is important to own a quality insurance policy.

Which type of vehicle insurance is best?

So, if you are looking for a basic plan with an affordable premium, a third-party liability plan would be an ideal choice. But, if you drive a luxury car, it is better to purchase a comprehensive cover, as it will help reduce financial liabilities in the event of an accident.

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Why is it important to have an insurance?

It gives you the power to protect your family even when you’re not around anymore. … Life insurance secures your family’s future and frees them from financial worries. It takes care of expenses like mortgage or a college education, which you would no longer be able to support.

What are the benefits of motor insurance?

Coverage against accident: A motor insurance can give you a coverage against damage happened to your vehicle due to some accidents. You can claim the expenses and save more money. Coverage against natural disaster: A sudden huge flood can damage your vehicle which will cause you to incur a huge expense.

What are the principles of insurance?

In the insurance world there are six basic principles that must be met, ie insurable interest, Utmost good faith, proximate cause, indemnity, subrogation and contribution.

What is the most basic car insurance?

Generally, the six basic car insurance coverages you’ll need are:

  1. Bodily Injury Liability Coverage. …
  2. Property Damage Liability Coverage. …
  3. Medical Payments or Personal Injury Protection (PIP) Coverage. …
  4. Comprehensive Coverage. …
  5. Collision Coverage. …
  6. Uninsured/Underinsured Motorist Coverage.

What are the 7 types of insurance?

7 Types of Insurance

  • Life Insurance or Personal Insurance.
  • Property Insurance.
  • Marine Insurance.
  • Fire Insurance.
  • Liability Insurance.
  • Guarantee Insurance.
  • Social Insurance.

What are the 10 best insurance companies?

More about the best car insurance companies

  • Geico. 4.5 NerdWallet rating. …
  • The Hanover. 4.5 NerdWallet rating. …
  • Liberty Mutual. 4.5 NerdWallet rating. …
  • Progressive. 4.5 NerdWallet rating. …
  • Safety. 4.5 NerdWallet rating. …
  • State Farm. 4.5 NerdWallet rating. …
  • Travelers. 4.5 NerdWallet rating. …
  • USAA. 4.5 NerdWallet rating.
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1.06.2021

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