Vehicle insurance, also known as auto insurance, is an agreement of insurance for cars, trucks, motorcycles, scooters, carts, and other road vehicles. Insurance or insurance policy is a legal agreement between two parties- one is the insurer and the other the insured. It provides the insured financial relief in case of losses due to certain circumstances such as accidents, fire, theft, natural calamities or other such incidents.
For instance, Mr Singh buys a fleet of heavy-duty trucks to start his transportation service business. After buying the trucks, he gets in touch with a truck insurance provider and gets into an agreement with them to get financial assistance in case of certain circumstances, such as accidents or theft. This agreement of insurance is referred to as vehicle insurance or truck insurance policy. He will have to pay a certain amount of premium as decided by the insurance provider to get the service.
· Auto insurance is a contract designed to provide financial security to a vehicle owner in case of certain unwanted circumstances such as damages due to accidents and collisions, fire, weather conditions, natural calamities, or theft.
· If you have comprehensive insurance coverage, then the major repair cost of the damages is paid by the insurance provider.
· It is mandatory to get your vehicle insured, be it a private vehicle or commercial vehicle.
· The vehicle owners get their vehicle insured to get financial relief in case any damage occurs to their automobile under certain circumstances to get risk cover.
Types of vehicle insurance:
There are generally three different types of insurance available. They are-
1. Private car insurance: This policy is used for cars that are used for private purposes. It offers financial protection to the car owner against the losses and damages caused to the vehicle due to unforeseen events like accidents, theft and the like.
2. Two-wheeler insurance: It is available for two-wheeler vehicles. It helps provide financial protection to these vehicle owners against accidents that take place on the road.
3. Commercial vehicle insurance: This policy helps provide financial assistance to commercial vehicle owners if there are any external damages of different kinds like theft, fire, accidents, natural calamities as well as third-party liabilities.
Therefore, we can see that an insurance policy is essential to help provide financial assistance to vehicle owners against any losses and damages caused by certain unforeseen circumstances. If you have any goods to deliver or need a good transport service, then you can reach out to our team Vahak. We are always there to assist you with all your transport-related needs.