Insurance company: advice on buying car insurance for newbie (Part 1)

If an advisor of insurance company says that car insurance is obliged to buy, that means they are talking about compulsory public liability insurance. However, there are three other kinds of insurance that car owners can choose to buy or not.

Insurance company: advice on buying car insurance for newbie (Part 1)

What does buying car insurance mean?

The nature of buying car insurance is that you are paying for risks that may occur in the future. When accidents happen, insurance company will compensate for finance losses in accordance with terms stated in the contract.

When having bought insurance, car owners want to be compensated fairly and quickly in case accidents happen. To make it happen, you need take your time when reading terms in insurance contracts. You need research carefully and consider finance levels before signing the contracts.

4 kinds of insurance

Insurance company offers you 4 kinds of insurance:

- Compulsory public liability insurance for vehicle owners

- Public liability insurance for goods carried on vehicles

- Material damage insurance for vehicles

- Insurance for people on vehicles

Among those insurances, compulsory public liability insurance for vehicle owner is obliged to buy. Any people own cars or motorbikes are obliged to buy under law of government to ensure the rights and benefits of the third party in case vehicle owners cause damage. Three other insurances are optional, not obliged.

Public liability insurance for goods carried on vehicles

If your demand of using car is to transport goods, you should consider buying this kind of insurance. Public liability insurance for goods will help you get compensated if there are losses and damages happening with you goods in accordance with the terms contract.

When unexpected situation happens to goods, insurance company will pay the amount of money that vehicle owners have to compensate for goods losses and damages under regulations of Public Law.