Automobile in the less complex words is a mode of transportation of people .insurance plan can be described as a written agreement made by an individual with some specific company which offers a fixed or varying amount of money in case of car loss due to any incident.
Automobile insurance plan in the united form can be defined as a plan or agreement made by a car owner to some specific company which is offering financial help in cases of accident or loss of a vehicle. it also includes other possibilities like theft or fire.
Types of vehicle insurance plans
Insurance of automobiles are nowadays essential in some countries and estate .therefore a insurance plan in which a person driving or driver of a car is involved in accident with some other vehicle on the road then he will receive no financial aid in fact the company will provide financial help to other party which is found suffered in the accident is called liability insurance.
It is the insurance plan in which people who is a cause of accident he will have to pay for the amount of damage caused to other person vehicle and also for his health and medical fees. However in some cases a person doesn’t buy this insurance plan when he is financially strong to pay for this type of situation.
- Different companies offer plans of different financial aid over same cases as per the insurance policy but the cases and plans offered by companies are mostly same.
- Insurance plan in which a person found responsible of accident needs to bear expenses of injuries caused to other person in accident is injury insurance plan. it includes hospital fees or in organ damage if a therapy takes a long time span expenses of this during that time span. if a person dies in accident the money spend on funeral is also endure by you.
- Collision coverage plan provided you with money when the vehicle is crash with something else. Vehicle caught in an accident with some other vehicle or with something else on the road footpath or with heavy machine used for building roads or plazas. the car can also hit trees alongside roads. In all these cases the amount that is value of the vehicle before accident is provided by insurance policy.
- Theft or fire coverage as the name tells is a plan which provides money helping in buy new vehicle in case if a vehicle is destroyed or mostly damaged due to fire which can be a result due to accident or explosion. it also offers financial aid if a vehicle is robbed.
Importance of vehicle insurance plan
- Buying vehicle nowadays is not easy as it involves a large sum of money therefore insurance plans helps you in saving your vehicle or helps you in buying new one in severe cases.
- It helps in saving money as in cases of theft or fire the investment you made on vehicle will not be a waste.
- It helps you in serious cases when you are found guilty in an accident therefore providing with medical fees to other person or for you.
It keeps a person from serious stress resulting in heart attack or some other serious issue as a person know he will not have to spend the money alone. It is difficult for an individual to arrange a large sum of money at once it will provide help in that case.