What is Auto, Vehicle or Car Insurance?
Auto insurance is a most common part of insurance. Auto car insurance in Pakistan is very useful because of large number of accidents. This type of insurance provides cover for loss or damage to any Auto like car, two-wheeler motorcycle or commercial vehicle, etc.
Large corporate groups having fleet of vehicles, leasing companies, banks offering auto loan schemes as well as individuals they provides vehicle insurance in Pakistan. Insurance including, Private Car Comprehensive, Motorcycle Comprehensive, Motor Third Party Liability, Trade Plate Policy.
Insurer in an entity which provides insurance, insurer is also called insurance company or underwriter. A person or entity that gets insurance is known as an insured or as a policyholder. There are several types of insurance – you can cover your things almost anything. Some insurance is compulsory – you can’t drive a car without at least basic car insurance, and you can’t get a mortgage on your house without buildings insurance. After compulsory insurances, the most important thing is to protect yourself and your family.
We will discuss here about auto insurance and major kinds of auto insurance. One of the most common Kind of Insurance Is Auto insurance which is discussed below:
History of Vehicle Insurance, Car Insurance or Auto Insurance
Just like the Creation of fireworks, the concept of Auto insurance can be traced to the Chinese as far back as 3000 B.C. Merchants sending boats up and down rivers in China would insure the goods on their boat, to protect against big and small losses due to the boat sinking or being hijacked by brigand. This “marine” insurance expanded as the population increased, ships grew larger, and trade expanded across the oceans. Most of the investors insured their cargo ships and give a suitable premium.
After that, the Greeks, Phoenicians and Babylonians also practiced a form of marine insurance. Even the Code of Hammurabi introduced a policy of marine insurance. Then in the 11th Century, Danish business owners and investors formed guilds to collectively establish a stronger, larger form of marine insurance that could cover bigger cargos and shipments.
Components of Car Insurance
If you are going buying a new vehicle or shopping for auto insurance, you must likely need to know the common types of coverage available on a car insurance policy. The Different types of car insurance coverage are available to help protect you and your car.
There are six common car insurance options for Coverage: auto liability coverage, uninsured and underinsured motorist coverage, comprehensive coverage, collision coverage, medical payments coverage and personal injury protection. Depending on where you live, some of these coverages are Necessary and some are optional.
Types of Auto insurance
There are six major types of Auto car insurance discuss below.
1- Liability coverage
It is a legal requirement by a car Diver in US States Mostly. Liability insurance may help cover damages for injuries and property damage.
2- Collision insurance
Collision vehicle insurance can cover damage to your car after an accident where involving another car or vehicle and may help to repair your car.
3- Comprehensive insurance
The comprehensive auto insurance is a type of insurance which is extra level of coverage in the instance of an accident involving another vehicle. It may help pay for damage to your car due to incidents besides collisions, including vandalism, certain weather events and accidents with animals.
4- Uninsured motorist insurance
This type of Insurance can protect you and your car against uninsured drivers and hit-and-run accidents.
5- Underinsured motorist insurance
For the sake of save Money Many drivers choose to carry the minimum in liability coverage but this might not provide enough coverage. Underinsured motorist insurance can protect you in the event of an accident with a driver whose insurance is not enough to cover the costs.
6- Medical payments coverage
This type of Insurance means after Insurance you will be free against medical. Medical payments coverage can help pay medical costs related to a covered accident, regardless of who is at fault.
Top 5 Car Insurance Companies in Pakistan
There are various auto Insurance companies in Pakistan. We need to check the record of the Insurance companies before buying an insurance policy or signing up any agreement. Must some research is important and definitely will benefit in Future.
These are Some Top vehicle insurance Companies in Pakistan.
- EFU Insurance
- Adamjee Insurance
- United insurance Company
- Jubilee insurance
- TPL Direct Insurance