Are you thinking about buying a new vehicle? Or, do you have an off-road vehicle that isn’t insured? Then, you need to read here fast.
Many people are driving a vehicle without motor insurance. And, this can have some serious problems when you are caught with insurance. This is valid in most of the states. The problem is that not many people understand motor insurance. We know that it’s the law to have insurance, but we don’t really understand the benefits of insurance. This is what we are going to talk about today. The essential information about motor insurance for vehicles and off-road vehicles.
Understanding motor insurance for beginners
What is motor insurance, and why is this something that you need to have when you purchase any type of vehicle? Insurance is a contract where the insurer is going to pay the insured person an agreed amount of money when your vehicle was in an accident, or if the vehicle is stolen.
The insurance is actually protecting the owner against damage to the motor. Repairing an accident damaged car can cost a lot of money. Money most people don’t have. With the insurance, they will pay for the repairs or replacement, if you are paying your monthly premiums. There are different types of vehicle insurance available, and you need to know what each one is covering before you just choose the first and cheapest insurance.
What does motor insurance cover
As we said, there are different types of vehicle insurance from different companies. And, you need to know what they cover before you choose your insurance package.
There are two basic types of motor insurance. The one is only covering liability. This is the required insurance that you need to have. And, the other one is covering liability and other kinds of damage. We are talking about the OD cover. Included in the OD cover, you will be protected against the following:
- Fire, explosion, and lightning
- Burglary and theft
- Riots and strike damages
- Natural disasters like earthquakes, floods, storms, etc.
- Accidental external leans
- While you are in transit
- During an accident caused by you or caused by a third party
It’s against the law to drive a motor vehicle without motor insurance
Insurance for your motor vehicle is something you need to have, no matter what. You are obligated to have at least liability motor insurance when you own a car. It doesn’t really matter if the vehicle is roadworthy or not. You even might not drive the vehicle anymore. When you own a vehicle or just driving it, you will need to have vehicle insurance.
When you are caught without insurance, you can get a huge fine, or you can even be arrested when you were in an accident and you weren’t insured. The most important thing to remember is that if you caused an accident and weren’t insured, you will need to pay for the damages. To your vehicle and the third-party. And, then it doesn’t matter if you have the money for it or not. This is something that not many people are aware of.
Things to consider when choosing motor insurance
When you are buying motor insurance for the first time, there are a couple of things that you need to consider. This is to make sure that you are getting the type of insurance that you personally need. There are three aspects that you need to make sure about before you buy any insurance.
- Will your vehicle be protected when your vehicle was stolen? This isn’t just an insurance option for new cars. Any type of car can be stolen, and then you want to get money to replace the vehicle and to pay for the money still outstanding on the premiums.
- Physical damage. This is when you are damaging your vehicle in an accident, during a natural disaster, or any other damage that can be done to your car. This might make your monthly insurance premiums higher, but this also means that you will be better protected. Especially when you live in a state where natural disasters are common.
- Use by others. Something that you might not consider, but once this happens you need to know that the insurance will pay out even if someone else was driving the vehicle. This is to protect you as the owner, and the driver that might be stopped for license and insurance.
These are all the information you need to know about motor insurance. Even if you have an off-road vehicle or a vehicle that isn’t in a working condition. We are also assisting you in choosing the right type of insurance for your personal needs. Now, you don’t need to worry about motor insurance again. You will be able to claim when you damage your vehicle or when the vehicle is stolen.