already purchased one? Well congratulations for the new vehicle but did you plan something for the safety of your vehicle and your own life? Purchasing new car or truck is not cheap. You has probably taken loan or used your saving for it. But what about the expenses related to your vehicles? For example; the theft and accident of you vehicle. Have you planned something for it?
Insurance is the only thing which could help you financially in your bad time specially if it’s related to vehicle. If you don’t know what does vehicle insurance called and how does its works then you are at right place because this article explains everything about it.
What does exactly vehicle insurance means?
Let’s start from the definition of vehicle insurance.
it is an agreement or you can say an legal contract between two parties, insurer (who take responsibility to pay damage) and insured (the one who purchased the vehicle) in which insured agree to pay the money to insurer for a specific time of period in return of insurer agree to bear the expenses of any future damage or theft of vehicle.
Here an insured is a person like you and me who purchase the vehicle while the insurer is the insurance company.
Basically in vehicle insurance you transfer the risk of future expenses related to your vehicle to insurance company to pay compensation.
Vehicle insurance is widely known as car and motor insurance.
It could be apply to any type of vehicle, for example motorcycles, car or even trucks etc. It was up to the owner of the vehicle to purchase insurance along with its car but due to high increase in vehicle accidents now its compulsory in many countries and states to insure vehicle at the time of its purchase. This rule is set for the safety of vehicle and the driver both. For example in England you cannot purchase a car without having vehicle insurance.
Insurance companies provide different types of policies to choose from. Every policy and plan is designed according to the need to the person. You probably not go to choose any random insurance policy for your vehicle. Choosing a vehicle insurance plan could be difficult without the agent who has experience in his work. So, basically you need to have basic knowledge of insurance when you are purchasing one for your vehicle.
The insurance companies also provide you the required information and suggest you the policies as per your car model and age of vehicle, your age, gender, usage, policy etc. But still you need to have basic knowledge about the policies and plans.