Motor insurance (also known as vehicle / car / auto insurance) is insurance purchased for cars, trucks, and other road vehicles. It provides protection against loss of or damage to the vehicle through accident or theft as determined in the terms and conditions of the insurance policy.
Third Party or Comprehensive Insurance?
When it comes to insuring one’s car, the question most `customers ask is why they should take comprehensive insurance when they can take third party insurance.
Whereas this is a truly personal matter, much of it depends on the value one places on their vehicle. For a lot of people, their vehicle is a highly valued possession, whereas for others it is a means of getting from point A to Point B. Whatever the case, a vehicle owner requires peace of mind that should the unavoidable happen, the insurance policy will come in to cover the risk.
Third-party insurance is purchased by the insured (first party) from an insurance company (second party) for protection against another party’s claims (third party). It covers the car owners’ potential liability to third parties but it does not cover the car itself against loss or damage.
Third Party – Fire & Theft
This is an extension of the Third-Party only policy in that it additionally protects the insured’s own vehicle against loss or damage which may result directly from fire or theft or attempted theft..
Comprehensive Insurance will pay for damage caused to your vehicle by fire, theft, accident, bodily injury, death or other causes as well as liability for third party injuries or property damage for which you are liable.
Motor insurance can further be classified into three areas;
- Private car insurance.
- Commercial vehicle insurance.
- Motor cycles.