It is something every driver needs before he takes possession of a vehicle. Not only is car insurance required by law, it is extremely necessary in case of a car accident. This very important type of cover can provide for repair costs and medical bills, for the drivers of both automobiles involved in an accident. This article will examine some of the most common types of car insurance, and what they cover.
CTP (Compulsory Third Party) is most basic type of cover that is required to drive an automobile, and because of this is the least expensive. However, the cover is very minimal. In case of an accident, it will cover personal injury expenses for other people involved in the accident. These may include: Passengers in the insured’s vehicle, passengers in the other car, and any pedestrians or cyclists affected in the accident, if the insured is at fault. It does not cover any damage to either of the vehicles involved, nor does it cover personal injury for the insured.
It is not recommendable to carry CTP insurance alone, as expensive law suits for property damage could arise, as such is not included with CTP cover.
Third Party Property Insurance
Many times, drivers of older vehicles do not want to pay high premiums. Even so, it is very prudent to take out a third party property policy. This type of cover insures that if the insured is found at fault in an accident, the auto repair costs to the other driver will be covered. This type of cover can be a real life saver, as without it, the insured could be sued for thousands of dollars of repair costs for the victim in the accident.
If in the accident, the holder of third party property cover is not at fault and the other driver is uninsured, compensation by the insurance company may provided for up to $3,000 for property damages inflicted. Also, third party property cover policyholders may receive protection against theft or fire damage.
It is a truly wise thing to have third party property cover. The only downside is that any repair costs required when the policy holder is at fault in an accident, are not covered.
Drivers of higher valued cars often choose comprehensive insurance. Though it is the most expensive, it is good to have because it covers costs of all damages on all vehicles, whether the insured is at fault of not. Drivers who are making payments on a car are often required by the lender to carry this time of cover.