What You Need to Know About Car Insurance

When shopping for a brand new car, the last thing that comes into your mind is the likelihood of accidents or any kind of damages to the vehicle. We’re typically tempted to postpone that all essential obligation of buying motor insurance until the situation demands.

While car insurance is deemed an extra expense, it is utterly detrimental that we put our money on it to protect us against vehicular damage or natural catastrophes.

Car insurance plans are categorized into two; comprehensive insurance and third-party liability. In comprehensive insurance, the vehicular damage is catered for by third-party liability, damages caused to the other parties resulting from your car involvement in an accident.

Although third-party liability is the only type of compulsory coverage, it is good to invest in comprehensive insurance as it offers broad coverage.

Below are the essential benefits of insuring your vehicle


Cars are subject to a large number of risks. Some of them are human-made, while the rest are natural. Examples of human-made include fire, theft, vandalism, accidents, etc. Natural calamities include storms, floods, earthquakes, and many more. Moreover, in the event of third-party liability, any damage inflicted to other parties is also catered for.


If you’re involved in an accident and the vehicle gets damaged to the extent that it cannot be repaired, the insurer will have no option other than to replace your vehicle. As long as you choose the right insurance plan, you can have your car replaced in totality with a new one that is of similar value.


It’s possible to insure your vehicle for a value referred to as Insured Declared Value, which depends on the manufacturer’s value minus the vehicle’s depreciation value alongside its age. If you choose a zero depreciation cover, the depreciation amount remains intact; however, the entire amount is surrendered to the owner.

To wrap up, these are some of the things you need to know about car insurance before stepping out to purchase one for your car.