The Importance of a Car Insurance

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A car insurance is basically the guarantee that backs you up to cover for any kind of financial requirements if there is a mishap or any kind of damage to your car. In return for paying minimal sums of money to an insurance company regularly, you can get compensated for any loss that you may face due to your vehicle or to your vehicle at any point in time. The first thing that makes having a car insurance essential is the legal requirement to have it. The law has made it obligatory to have some sort of financial coverage in the event of any kind of harm coming to your vehicle or third-party properties due to your vehicle. A car insurance can give you peace of mind and make your vehicle much less risky for you. That is a significant plus. Nowadays, car insurance companies like Allianz Car Insurance are continually expanding their insurance packages to cover for more and more kinds of damage that your vehicle can possibly suffer. 

The most beneficial aspect of having a car insurance is that it not only covers for the liabilities to your own vehicle but also provides protection against any compensation costs that you may have for damage that your vehicle has done to any third-party property like a vehicle or even an injury to you or to third-parties like passengers, drivers, and pedestrians. Accidents, mishaps, and coincidental or natural disasters are things that are beyond our control or anybody else’s, so it is always good to have a little backup insurance just in case you do encounter one of these and have to pay the expenses for compensation. Also, driving without car insurance is illegal, and it can result in you being fined or your driving license being confiscated. The government also continually discusses and reviews the penalties for uninsured drivers who cause different kinds of damage to people’s lives and property. 

Therefore, an uninsured vehicle can also be seized or destroyed. Allianz offers three types of car insurance. 

  • Third-party – It provides protection against any compensation costs that you may have for damage that your vehicle has done to any third-party property.
  • CTP – This is the same as third party but also covers the cost of repairs or a replacement vehicle if your car is stolen or damaged by natural disasters.

Comprehensive – It protects against damage to your own car as well as accidents involving other people and provides a courtesy car and legal expenses insurance.

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