Car Insurance Details: Things To Keep In Mind When Buying A Car

car insurance

Did you know that driving without a valid car insurance policy is a crime? As a result, after purchasing a vehicle, it is necessary to ensure each vehicle. If the automobile is insured, the owner, or even a third party, will be reimbursed if the car is destroyed.

As a result, every automobile owner must insure their vehicle after purchasing it. Let’s take a look at some of the most important components of car insurance, sometimes known as motor insurance.

What is car insurance?

Car insurance is the legal financial help offered by an insurance provider to a vehicle owner or third party in the event of auto accidents for any reason or third-party damage caused by the vehicle. All automobile owners are required by law to have third-party insurance cover. This is because the car’s owner is liable if the car’s usage in a public location causes injury to a third party. As a result, driving without insurance in public is illegal.

Types of car insurance policies

Generally, two types of motor insurance policies are covered in Bangladesh

  • First-party or comprehensive insurance policy
  • Third-party insurance policy.

Comprehensive insurance

In a first-party or comprehensive insurance policy, the insurance company pays compensation to the car owner. If an automobile is involved in an accident, the insurance companies will reimburse the vehicle owner or the car owner’s family for any damages incurred by the accident under this policy.

In addition, if the vehicle is damaged due to any natural calamity but the vehicle under the first party is damaged, the owner of the vehicle is compensated for the loss of the vehicle. The premium rate of this policy is relatively high.

Third-party insurance policy

If a car is covered only by a third-party insurance policy, then the owner of the car is not compensated for the loss of the car if the car is damaged due to any reason or accident. The insurance company will only take responsibility for the damage caused to the third person by the car.

car insurance

What does a car insurance policy cover?

Insurance companies cover car compensation in the event of the following accidents.

  • Fires, thunderstorms, explosions
  • Theft/robbery
  • Any kind of riot facade
  • Earthquake
  • Storms, tidal waves, floods, hailstorms
  • Terrorist activities
  • Malicious activity
  • Accidents while traveling by rail,inland waterway, road, elevator or elevator
  • Landslides

Let’s take a look at what does not fall into the motor insurance cover

  • Illegal work
  • No harm from the effects of drugs
  • Accidents outside of geographical boundaries
  • Not having a valid driving license
  • No electrical or mechanical breakdown.

Things to keep in mind before buying a motor insurance policy

Penalty for injury or death

When you get a motor insurance policy, be sure that the insurance provider will cover the liability in situations anybody is injured by your vehicle.

Medical expenses

Whether you or anyone else in your car is killed in a car accident, verify to see whether your insurance provider will compensate you.

Property compensation

Before insuring if your car has caused any loss of life or property to another person in the accident, its insurance company has paid the compensation.

Damage beyond accident

In case of any damage to the vehicle due to various reasons other than road accidents such as car theft, vandalism, fire, storm surge, or natural calamity, make sure that the insurance company is giving an insurance policy on any condition.

After purchasing a car, motor insurance is essential to avoid the loss of the car owner, passengers, and accidents. So, when you’ve purchased a car, make sure you’re insured and that the vehicle is safe.