MEANING OF CAR INSURANCE
Car Insurance is a class of Insurance Policy between an Insurance Company and an Insurer wherein the former undertakes to protect the Later against financial loss in the event of an accident, or theft of his car. it can be universal car insurance or specific.
In consideration of payment of premiums in the Insurance Policy, the Insurance Company undertakes to compensate losses done to your car.
Similarly, car insurance policy can cover you and even your family members in the event of eventualities, and may even extend to persons who drive your cars with your permission or consent.
CATEGORIES OF CAR INSURANCE POLICY
Car Insurance maybe categorized into Personal Car Insurance Policy, Third Party Liability Car Insurance Policy and universal/Comprehensive Car Insurance policy. Therefore, your car insurance Policy depends on the agreement between you and the insurance company. And which is usually clearly set out in your Insurance Policy.
Personal car insurance policy serves to cover personal use of your car, be it running errands, work or undertaking a journey. This means that personal car insurance policy will not provide coverage if you use your car for commercial purposes. That is, providing transportation of goods and services for others.
However, an exception exists where there is a special agreement between you and your Insurer. Nevertheless, you will have to pay additional premiums to get coverage for the use of personal car insurance policy for commercial purposes.
Third party car insurance policy covers third parties for damages done to them by your car. It protects you or a Driver of your car against legal liabilities, financial losses, property damage, etc arising from third parties. And even accident liabilities such as medical bills arising from your car.
Universal car insurance policy as its name implies, covers all the features of personal and third party car insurance policies.
UNIVERSAL CAR INSURANCE POLICY
As you already know, Universal Car Insurance policy embodies the components of both personal and third party car insurance policies. And as such, represents all encompassing car insurance cover that protects you against own damages and third party liabilities. It covers uncertain circumstances such as thefts, accidents, fire and natural catastrophe/disasters.
COVERAGE
Universal Car Insurance plan affords protection to you over a wide range of uncertain future damages to your car. In as much as they are expressly, part of items of coverage in your Insurance Policy. And, as such, it is good that you always carefully study, the items of coverage in your universal car insurance policy before entering into the contract to avoid last minute surprises.
Generally speaking , the items stated hereunder are what your universal car insurance policy covers. And you don’t need to bother about the loss resulting from their occurrences the moment you purchase a plan as your insurer will indemnify you, they include;
- Damages to your car from either falling objects, such as trees or damages arising from civil disturbances such as riots;
- Damages done to cars of third parties;
- Damages done by way of vandalism. In case your car is vandalized, even in the event of civil disturbances or riots, the insurance company will provide you full reimbursement for the repairs done to your car. And if it is damaged beyond repairs, your Insurers will provide you the full market value of your car;
- Damages from fire outbreaks;
- Universal car insurance policy equally offers you protection in cases of theft;
- Damages arising from happenings of natural disasters such as severe weather, hurricane etc;
- Damages arising from collision; If you don’t have a universal car insurance policy, you cannot make a claim from your Insurers in the event of collision;
However, there are items which this policy cannot afford you protection against and they include;
DAMAGES NOT COVERED
Your plan cannot protect you against;
- Normal wear and tear of your car;
- Damages arising from your drunkenness or when you drive under the influence of hard drugs;
- Damages done by a driver who does not have a valid driver’s license to drive;
- Damages to your car arising in the event of wars, nuclear risks etc. The exception is where the insurance policy expressly includes them by agreement of parties;
- Damages to Tires and tubes of your car;
- Electrical and mechanical breakdowns of your car;
- it cannot also protect you against depreciation of your car.
ADVANTAGES OF UNIVERSAL CAR INSURANCE PLAN.
They are numerous benefits accruable to you when you buy your plan and they are:
- The protection and coverage provided by universal car insurance plan is all encompassing. And as such, represents the highest cadre of insurance protection you can give to your car.
- It equally covers liabilities arising from lawsuits and incidental legal fees made against you by third parties.
- With universal car insurance, you can make claims for losses in the event of an accident even if you are at fault.
- Universal car insurance plan affords you financial indemnity if your car is written off during accident or other means.
- It covers damages done to your own car during an accident.
- Universal car insurance plan most importantly affords you peace of mind and pecuniary protection.
- It offers compensation in the event of death of the owner or the driver of the insured car. And also in the event of permanent disability arising from accidents.
- covers your car against all forms of fire accidents. But excluding fires from engine overheating as it is a mechanical defect.
- It protects your car and its components against theft. Your Insurers will provide you with full compensation in such event.
CONCLUSION
It can be seen that this class of car insurance policy is of high necessity and should not be considered a luxury. This is because, a personal or third party car insurance plan is of little help when the issue of protecting your car against damages.
Although, premiums payable for universal car insurance plan is higher than that of third party or personal car insurance plans, it is nothing compared to the enormous benefits with getting a universal car insurance coverage. And thus it is nothing but prudence to consider universal car insurance plan when making decisions about car insurance policy. This is because it provides an all encompassing protection to your car through its lifetime.
