The car greatly facilitates everyday life. It is expensive, so some people save money for its purchase for many years. It is not surprising why all drivers seek to insure it. Insurance allows you to compensate for damage caused to another road user or pedestrian in the event of your fault of an accident. This is the most affordable, and at the same time, compulsory insurance. In most cases, it has different discounts and benefits for different situations. The example is car insurance for veterans.
Basic Concepts of Car Insurance
Insurance refers to emerging obligations to protect the property of insured persons in the event of events that are specifically indicated in insurance contracts. The protection of these persons is carried out from financial funds, which are formed from insurance contributions.
An insured event refers to the event that is provided in the concluded insurance contract. Upon the occurrence of such an event, the insurer is obliged to issue an insurance payment to the insured or the person indicated by him. Insurance risk is called a probable event in case of occurrence of which insurance is carried out.
Difference Types of Insurance
In addition to compulsory insurance, there are additional types of insurance for car owners. These include the following:
- Motor hull insurance;
- Cargo insurance;
- Full insurance;
- Accident insurance.
With full insurance, the car owner is indemnified for all losses that occur when the insured vehicle is lost or damaged, if people are physically injured, or if property belonging to a third party is damaged. Also, the owner gets money for the damaged baggage located in the vehicle at the time of the accident.
Motor Hull Insurance
This type of insurance protects against any losses arising from damage to the complete failure of the vehicle or its components in case of accidents listed in the insurance policy. Motor hull insurance can be full as well as partial. With full insurance, compensation is made for losses that have occurred in the event of damage to the insured vehicle as a result of the following:
- Tipping over;
- Natural disaster;
- Illegal actions of other people.
Talking about partial insurance, the damage is indemnified in the following cases:
- Damage is done by a bounced or dropped object;
- A natural disaster such as hail, earthquake, or storm.
It is most often used by vehicle owners who use their vehicles on an ongoing basis for the transport of goods. Sometimes cargo insurance is also carried by people who use hired third-party vehicles. Such cargoes are insured against damage in the event of an accident, natural disaster, or theft detected. Such insurance contracts are concluded for the duration of the carriage of goods. As a rule, this time includes the time of loading the goods and the period of delivery of the goods to the consumer before delivery to the consignee. In this case, the insured amount does not exceed the cost of the transported cargo together with transportation costs.