Monday, June 15, 2009

Car insurance 101

If you own a car, car insurance is absolutely essential. It is required by law because the government wants to ensure that if you caused an accident with resulting property damage, injuries or even death, you (actually your insurance company) are able to pay compensation. Even if it is not compulsory to have at the minimum third party car insurance, it would be wise to get insurance cover for your car as you would not want to be burdened by huge claims.

However, for some classes of motorists, there is some problem. One of them are young students with limited driving insurance. Because of higher risks, the premium young students have to pay for the car insurance is higher. If you are in this class, do check out Car Insurance for Student Drivers.

Another point of interest for motorists is No Fault Car Insurance. A car accident will involve at least 2 motorists each with different insurance policy. To determine which insurance company pays for damages and compensation, a long tedious attempt to determined which party is at fault. There may also be very expensive law suits which only benefits the lawyers. No fault car insurance means irrespective of which party is at fault, each insurance company will pay for their own insured. This system of no fault car insurance policy makes life much easier for all party.

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