Car Insurance- A Doctor for your Vehicle

Buying a new vehicle or a car these days can be a big task, and once this task is fulfilled there is other task that is lined up, and it is a Car Insurance. A car insurance is basically the protection for your car, which protects it from anybody damage or physical damage which can take place maybe through an accident or a collision. Car Insurance is also termed as motor insurance. It is a memorandum between a car owner and an insurance company wherein, the insurance company will cover all the losses and damages caused to the vehicle. Sometimes when you are in stuck in an accident situation, it helps you to recover all the losses incurred. In other countries like United States and United Kingdom it is necessary to have insurance.

History

In the ancient time, after the First World War was over the increase in the usage of motor car increased rapidly in town and cities, which in turn lead to the increase in road accidents and collisions. Since, it was not safe to drive cars the concept of Insurance came into existence in 1906. It was first implemented in United Kingdom and later Germany enacted in 1939 with various other countries.

What does car insurance cover?

Car Insurance protects your vehicle and covers the following losses:

1. Any physical damage of the insured vehicle
2. Medical payments in case the insured party is injured
3. Damage of any public property caused by the insured
4. Accidents which do not involve insured party
5. Other activities like theft and fire.

How does car insurance work?

To understand this let us take an example, what does a doctor do? A doctor protects his/her patients when he/she is in a difficult circumstance. Similarly, car insurance protects the vehicle from damages and traffic collisions and aims to provide the owner with financial help during the damage or loss of the vehicle.

Following are the steps to file insurance-

1. As soon as your vehicle has foreseen damage, the first step you should do is to contact your insurance company.
2. The company will then assign an investigator to observe and note the losses incurred.
3. After the investigation is done, your insurance policy will be reviewed thoroughly.
4. Appointment of an engineer or mechanical person to evaluate the extent of your losses
5. When all the above steps are completed and the repair is done completely the company will provide you the claim.