1. What is Motor Insurance?
Motor insurance, also called vehicle insurance, is a policy that protects you financially against damage, theft, or accidents involving your vehicle. It also provides liability coverage in case you cause damage to someone else’s property or injure someone.
2. Types of Motor Insurance
- Third-Party Liability Insurance
- Covers damages or injuries caused to another person, their vehicle, or property in an accident you are responsible for.
- This is mandatory in most countries.
- Comprehensive Insurance
- Covers both third-party liability and your own vehicle’s damage due to accidents, theft, fire, natural disasters, or vandalism.
- Optional, but provides more protection than third-party insurance.
3. What Motor Insurance Usually Covers
- Accidental Damage – Repairs for your vehicle after an accident.
- Theft or Fire – Compensation if your vehicle is stolen or damaged by fire.
- Natural Disasters – Damage caused by floods, storms, earthquakes, etc.
- Third-Party Liability – Medical and property expenses of others if you are at fault.
- Personal Accident Cover – Medical expenses for the driver in case of an accident (depends on policy).
4. What Motor Insurance Usually Does Not Cover
- Damage due to negligence (e.g., driving under influence, illegal racing).
- Normal wear and tear of the vehicle.
- Mechanical or electrical breakdowns unrelated to an accident.
- Damage if the vehicle is used for commercial purposes without proper coverage.
5. Tips When Buying Motor Insurance
- Decide Between Third-Party and Comprehensive – Choose based on your vehicle’s value and risk.
- Compare Premiums – Check different insurers for the best rates and coverage.
- Check Add-ons – Optional add-ons like zero depreciation, roadside assistance, or engine protection can give extra coverage.
- Update Policy Regularly – Vehicle value changes over time; make sure coverage reflects it.
- Understand the Claim Process – Know how to file a claim and what documentation is required.
