Car insurance is a legal requirement

I am sure you know that car insurance is a legal requirement in most developed countries. auto insurance is a method of the car driver being covered for the unexpected. This type of insurance policy will help in the re numeration of money in a way of damage caused by the driver. There are two types of car insurance.

Third party fire and theft car insurance is the cheapest option. This is the minimum legal requirement by the ministry of transport and the police. The third party fire and theft auto insurance policy covers the third party only. If you for example hit a car, the car you hit is called the third party. Your third party fire and theft car insurance policy will only pay the other car owner. You will be responsible for your own damage. This cheaper car insurance policy can seem to be the better option. Retrospectively you may wish to consider who will pay for your damage or car replacement. It is important at this point to inform all people with a secured car loan or lease car agreement that you must have a fully comprehensive auto insurance policy.

Fully comprehensive car insurance is the best cover. This type of insurance policy in the event of an accident will re-numerate both people involved. This is the better option and it is now the normal policy people will take out. Many years ago third party fire and theft only car insurance was far cheaper. These days there is very little difference between the two types of auto insurance.

The fully comprehensive car insurance policy will pay all medical bills and in certain circumstances will pay an amount of money for compensation for loss of earnings or if the third party is left with a disability after the crash. These are of course in the extreme, but problems do occur.

What if the person who collides with you has no car insurance? Well if you have your own fully comprehensive auto insurance policy, your own insurance company will pay for your damage. If you only have third party fire and theft auto insurance, you will not receive anything. In some countries, there is a monetary re- numeration scheme for victims of accidents where the perpetrator has no motor vertical insurance. Please check in your local transport office. You can take the uninsured person to court however, this is a lengthy process and you may still not receive any money back to cover your losses.

Waiting for the court to award any re-numeration and then checking the guilty party's ability to pay could take years. You need to consider what you would do if this was the case. This is why fully comprehensive car insurance is the best and most sensible option for all car owners. This type of insurance policy protects every road user or pedestrian. It protects the investment you made when you purchased you motor vehicle.

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