June 28, 2020, midnight

Vehicle insurance: Do you know what is vehicle insurance and its importance?

The great increase in the number of vehicles in our country posed problems on many levels. This increase led to congestion of roads, this increase also led to a noticeable and measurable increase in traffic accidents , and in a way that constituted a danger to societies in terms of loss of life and injuries, and in terms of material losses resulting from treatment expenses in the event of injuries, compensation for deaths and disruption rates, etc. as well Losses in vehicles in terms of repairing them, but the issue of limiting traffic accidents is a topic that many articles touched upon, and there are many of them on this site, but in this article, I will talk about reducing material losses as much as possible and mitigating them, and what are the procedures for doing this, especially Some may matter to its core, in order to save and think that accidents do not affect it, and it is protected from them, and therefore there is no benefit from this procedure and expenses.

Definition of vehicle insurance

It is a written contract between the two parties, the first is called the insurer (usually the insurance company) and the second is the insured (the owner of the vehicle), and under this contract the insurer is obligated to make reparation for the damage and compensate the insured for the damages that happen to his vehicle according to what is covered by the contract, in exchange for financial installments paid by the insured It is according to what is agreed upon between the two parties (annually _ monthly _ semi-annually).

Vehicle insurance benefits: -

1. Feeling of protection : Vehicle insurance provides a feeling of protection from loss, so the insured has, upon his commitment to an insurance contract for his vehicle, feels that any damage he makes against others will be covered and protected according to this contract, and in this way he feels safe and the feeling of anxiety disappears, a leadership in general needs To comfort and tranquility. This does not in any way mean negligence and causing accidents without need, as there are authorities that, whether by the police or insurance companies, will investigate the cause of the accident, and if it is found that it is fabricated, there is no compensation for the accident, but there is a penalty for the culprit of the accident.

2. Protection for society : This protection is divided into two parts:

A. Physical protection : Insurance protects society from its financial losses as a result of traffic accidents, it is known that insurance companies reinsure accidents with companies A major international that works in this field, and receives compensation for the accidents it insures.

B. Social Protection: Protection of society from disputes between its members, so if there is no vehicle insurance for the many disputes either in the courts, or either For disputes to turn into quarrels, and the use of force to restore rights, with insurance on the vehicle, individuals will shorten these disputes between them and go to insurance companies with their claims, which may respond to them, and it may be necessary to go to the courts, but in general, insurance companies shorten many disputes and discounts and end Claims amicably in its offices.

Types of vehicle insurance:

Vehicle insurance is divided into two types, and we will list them, the pros and cons of each type:

Third Party insurance:

This insurance includes reparation for damage and compensation for other vehicles and their passengers if the insured is the party responsible for the accident And this is proven, and it does not include the insured vehicle or its owner and passengers, and this type of insurance is also called (compulsory insurance), and the designation is due to the fact that the law requires the vehicle owner to insure his vehicle in this type of insurance as a compulsion, and otherwise the punishment is due on the vehicle owner, which may You reach confinement in some laws.

Pros of third-party insurance:

1. Compensation is provided for accidents caused by the insured (unintended accidents) to others, and therefore he protects him from paying amounts that may be high sometimes, and relatively speaking, she feels the driver of the vehicle is safe from the risks of accidents.

2.  Its premiums are relatively simple and not high, and it is not considered one of the amounts that burden the vehicle owner with regard to the protection it provides and the risks that it covers.

3. Its installments are fixed and do not change with the value of the vehicle.

Cons of third-party insurance:

The disadvantages of this type of insurance can be limited to the limited cover and protection it provides, it is limited to the vehicle of others, and therefore any damages and faults that occur to the vehicle of the owner or its driver are not covered by this type of insurance if it was the one who caused the accident, and he must bear the costs of these breakdowns and damages.

Comprehensive insurance:

It is optional for the vehicle; in which case the vehicle owner chooses to cover his vehicle with full protection. Under this comprehensive contract, protection covers both his vehicle and other vehicles, and their passengers.

Comprehensive insurance pros:

1. Insurance that provides high protection, and the insured feels protection for his vehicle, even if he causes the accident, and thus may avoid paying large amounts of money to fix it.

2. Insurance for many types of risks, as it is not limited to vehicle accidents. Comprehensive insurance covers the risks of theft, fire, and others.

Comprehensive insurance cons:

1. Premiums are high, and not all vehicle owners can pay them, or at least they are comfortable, especially if we know that many of those who buy modern cars are the ones who pay the price through bank financing and in the form of monthly installments

 2. It does not cover all cars, except modern ones, depending on the age of each vehicle, the old vehicle is assumed to be fast-damaged and causes more accidents than its modern counterpart

 3. The field of referring a dispute to the courts is much due to the high value of the claims, and therefore the insured may have to apply to the courts against insurance companies