Car insurance protects you and any other driver/s while driving in your vehicle. Car insurance covers you for the costs of third parties in case you are injured or killed as a result of an accident.
Policies can cover the cost of repairs or reimbursement for stolen or written-off vehicles.
You may be covered if you drive another person's car, depending on the policy.
What happens if I don’t have car insurance
Car insurance is becoming a burden due to rising fuel costs and living expenses. However, it is an essential expense. Car insurance is required by law in some countries like the UK.
Let's suppose you are driving along the highway, uninsured, while your car is alone, and end up in an accident. If the other driver was insured and you were not responsible, you could collect money from their insurance company. You would need to sue the driver if he was not insured.
If the accident was your fault, you can either pay compensation to the other passengers or pursue your assets. These assets can be your savings, your paycheck, or something else, depending on the extent of the damage. Your future insurance premiums will be higher if you are deemed high-risk.
If you think cancelling or not having insurance is an easy way to save money it is likely that it will end up costing you.
What type of car insurance do you need?
There are three types of car insurance: third-party, third party, fire, and theft; and comprehensive coverage. (The links will take to videos that explain each cover more).
What are the factors that affect the price of car insurance?
To get the best deal, it is important to shop around and compare policies across different insurance companies. It will take some time, but it will help you save a lot of money.
The premium you pay will be affected by many factors, including the make and model your car, where you live, how secure your parking spots are (home and office), your demographics, experience behind the wheel, claims history, and other factors. Find out if speeding tickets can increase your car insurance premium.
What is excess?
An excess is, by definition, the first money you agree to pay in order to settle any insurance claim. This is typically paid to the repairing firm responsible for your vehicle after an accident. It is paid to them once the damage has been repaired before you can drive the car away.
You pay this amount regardless of the cause. It is used to stop customers from filing minor or fraudulent claims and keeps premiums low.
Advice: When comparing car insurances, pay more excess to lower your premium. If you're considering filing a claim for a small amount, it is better to pay the repair costs yourself to get a discount or no-claim bonus.
