It is important to have insurance for your vehicle.
This applies to people and institutions that have vehicles.
The main reason as to why you should have this insurance is to safeguard the interests of those involved in auto accidents or any other property damage.
Lack of these insurance is accompanied by severe penalties such as a substantial fine, revocation or suspension of a license or possibly a jail term.
The three notable types of motor insurance are the 'Act Only' insurance, 'Third Party' insurance and the Comprehensive insurance.
Act only vehicle insurance has the minimum cover that the law requires.
This is indeed the main reason as to why it was called Act Only insurance.
This insurance requires that a driver purchase this insurance in that they can be able to take care of their liabilities in the event of an auto accident where people can be injured or at the same time die from the accident.
This type of insurance is not common because the insurance protection is minimal.
The Third Party vehicle insurance is broader than the Act Only.
This insurance gives protection to any other third parties that might be involved in the accident.
Whether they die of face severe or minor injuries then this insurance will cover all their medication.
It also provides protection on any other legal liabilities.
This can include damage of the third party property, which in this case can be another car or building with specified legal costs attached.
Under this insurance too, you may include protection for loss of vehicle or any other vehicle damage caused by fire or theft.
Comprehensive vehicle insurance is the most practiced form of insurance.
Though it does not cover every conceivable risk, it gives a number of unique protections such as damage or loss incurred to the vehicle, which might be caused by theft or fire.
It is worth noting that this insurance covers accidental damages of the vehicle of the policyholder.
This cover enables you to have your vehicle repaired, replaced or reinstated in the event of accidental loss or damage.
Apart from these three insurance policies, there are other additional coverages that you may enjoy if your vehicle gets involved in them.
These are the glass breakages, which include windows or windscreens.
Landslide, floods or landslip accidents or nature convulsion and passenger negligence such as opening your door which there after causes an accident with either another vehicle, motorcycle, bicycle or hitting a pedestrian or using you private car to teach a novice driver.
It is important to have these insurance policies with you for your own befits.
In some states, the law requires that you always carry your insurance policy whenever you go in your vehicle or any other vehicle.
This will help in the case of an accident and medication is required.
It is also advisable to always be on the safe side of the law because failure to have this insurance the consequences are regrettable and in case you are taken to court, it will depend with the charges where in this case you may be penalized so as to serve as an example to others and those with certain intentions.