What is a Motor Insurance Policy?

What is a Motor Insurance Policy?

You all know that it is necessary to have an insurance policy to cover damages. Some people are not aware about the insurance policy because they assume that it is not necessary. But in reality, it is.

It is necessary to have a motor insurance policy because it protects us in different types of accidents. So, if someone gets an accident, and you are not covered with a motor insurance policy then you are out of luck.

Motor insurance policies are mainly used to cover damages of your car. So, if you are buying a new car, you need to get a new motor insurance policy.

Here is a list of the most common type of damages covered under a motor insurance policy:

1. Liability coverage: This is a compulsory type of coverage and you can get it by buying a new car. If you have liability coverage, then in case of any accident, you will be responsible for the damages to other cars, bike and people.

2. Collision coverage: This is a compulsory type of coverage and you can get it by buying a new car. If you have collision coverage, then the coverage will compensate the damages of the third party.

3. Comprehensive coverage: This is a compulsory type of coverage and you can get it by buying a new car. If you have comprehensive coverage, then you will get compensation of the vehicle damages and also of the third party.

4. Medical payments: This is a compulsory type of coverage and you can get it by buying a new car. If you have medical payments, then you will get compensation for the injuries and deaths caused to the third party due to your negligence.

5. Loss of income: This is a compulsory type of coverage and you can get it by buying a new car. If you have loss of income, then you will get compensation for the wages lost due to the accident.

6. Uninsured/Underinsured motorist coverage: This is a compulsory type of coverage and you can get it by buying a new car. If you have uninsured/underinsured motorist coverage, then you will be paid in case of an accident with an uninsured/underinsured driver.

Also read this Insurance: Is It Really Worth the Premiums?

Conclusion:

I hope the above description was very helpful for you. In case of any query related to the motor insurance policy, you can always contact the insurance company. They will guide you and explain you the benefits that you can avail from a motor insurance policy.