The What, Why , How and Contents of Motor Insurance [1/2]

The acquisition of a motor vehicle can be a  long cherished ‘dream come true' for some, or a hobby for others, a collectors' item for few more or the lifetime achievement   for many who get to own one by  shelling out their lifetime worth of hard earned savings.

Whatever be the situation , protecting your vehicle  by getting it under the umbrella of motor insurance is a sure shot way for you to have your peace of mind.

Why Motor Insurance ? 

The reason is simple. Accidents happen. One never knows for sure if and when one may end up as a victim of an unfortunate circumstance, even if it is not the person's fault. Natural disasters, burglary, road accidents can wreck havoc on a person should one find out that the financial worth of one's vehicle cannot be recovered as it can be a great loss.

Having stated the importance of Motor Insurance , let us understand what is  Motor Insurance.

What  is Motor Insurance ?

Motor Insurance  constitutes a risk management procedure for the payment of an equitable amount of money in reference to the financial security of your vehicle. It is basically  the financial coverage sought for your vehicle in the unfortunate event of any accident, collision, damage or loss due to theft or burglary. It protects the motor vehicle owner  against such unforeseen  incidents which could be natural, circumstantial or caused due to human error.

What are the  basic elements of your Motor Insurance ?

Liability coverage and Property coverage.

Regarding Auto Insurance, (a)  Liability coverage protects your car , in the event, when you are responsible for damage caused to another person or another's assets and in the process you are being sued. (b) Property coverage protects  your vehicle against  damage  caused due to any ‘peril' like fire,  thunderstorm, flood , lightening etc.

M. Catherin