Basic motor vehicle insurance is mandatory in most countries and offers financial protection in the event of an accident. But is that enough? What are the options? Find out how auto insurance works and what types of insurance are available.
Motor vehicle insurance offers insurance coverage for: Property – such as damage or theft of your car. Liability – Your legal obligations to others for personal injury or property damage. Medicines – the cost of treating injuries, rehabilitation, and sometimes lost salaries and funeral expenses.
Your car insurance covers you and other family members in your policy whether you drive your car or someone else’s car (with their permission). Your policy also provides coverage if someone not covered by your policy drives your car with your consent. Your personal vehicle policy only covers personal driving, regardless of whether you drive to work, book or travel. There is no insurance coverage if you use your car for commercial purposes – for example, if you deliver pizza.
Personal Injury Liability – cover the costs of any injury or death caused to you or another driver while driving your car. Liability for Damage – Compensating others for damage caused by you or another driver driving your car into another vehicle or property such as a fence, building or flight.Medical payment or Personal Injury Protection (PIP) which provides reimbursement of medical expenses for injuries suffered by you or your passengers. It also covers lost wages and other related costs.