Motor Vehicle Insurance
What is Motor Car Insurance?
Motor car insurance is a contract between you and the insurance company that protects you against financial loss in the event of an accident or theft. In exchange for your paying a premium, the insurance company agrees to pay your losses as outlined in your policy.
Why You Need Motor Car Insurance
Motor car insurance protects you against financial loss if you have an accident. It provides coverage for: 1. Property, which pays for damage to or theft of your car; 2. Liability, which pays for your legal responsibility to others for bodily injury or property damage; 3. Medical, which pays for the cost of treating injuries, rehabilitation, and sometimes lost wages and funeral expenses.
Basic Comprehensive Car Insurance Terms
Own Damage / Theft covers the damages on your car while you are on the road. There are two areas that this coverage includes: damage to your own car through an accident, and insurance against theft. Own damage car insurance also protects you from: car napping, vandalism, theft of parts, damages while driving, and damage to your car while in transit.
Your policy will not cover: items inside the car, and the damages caused by natural disasters or factors such as trees falling, or earth cracking open.
Bodily Injury or Voluntary Third Party Liability (VTPL) provides protection for death and bodily injury to third party (pedestrians) that got hit by the insured vehicle in excess of the limits provided under the CTPL Cover.
Property Damage or Voluntary Third Party Liability (VTPL-PD) provides protection for damage to properties owned by third party that got hit by the insured vehicle.
Auto Personal Accident (Auto PA) protects the insured and his car passengers against loss resulting directly or indirectly of all other causes from bodily injury caused by a car-accident.
Acts of Nature (also known as “Acts of God”) “Acts of God,” for insurance purposes, are defined as events that occur through natural causes and could not be avoided through the use of caution and preventative measures. In essence, the phrase “Acts of God” refers to natural disasters. It’s important to read the fine print though, as many Acts of God may be covered, but the definition of an Act of God is whatever your policy says that it is. This remains, however a valuable add-on to your insurance policy.