What Your Insurance Type Really Means

When sorting through the details and implications of various kinds of insurance, many people can’t help getting a bit bogged down in the technical jargon and ending up simply buying the easiest or cheapest policy that they can get their hands on. However, when it comes to distinguishing what your insurance style means for you in the event that you have actually been in an accident, you will want to be able to understand exactly what your plan covers and does not cover.
There are many different sorts of insurance for every type of vehicle owner and vehicle, ranging from the absolute legal minimums to a fully comprehensive coverage style that will pay for everything from a new car to a temporary vehicle hire to medical expenses if you get into a wreck. At HSBC, for example, three tiers of vehicle insurance are available from most basic to most all inclusive: third party, third party plus fire and theft, and comprehensive.
What You Can Gain from Third Party Insurance Policies
All drivers ought to have at least third party insurance on their vehicle, as it is necessary to ensure that all the other drivers out there on the road with you are safe and not endangered as a result of your presence on the motorway. Third party is called such because it takes financial care of the bodies and vehicles of those who you may get into an accident with. In the event of a crash, third party insurance covers the appropriate physical and mechanical damage to the other driver. It does not make any financial promises to you regarding your injuries or your vehicle damage, but only assures you that you won’t get stuck in a situation where you owe another motorist for damage that they or their vehicle incurred as a result of you.
At one step up from third party insurance, you will find the option to be covered for third party plus fire and theft. This sort of policy ensures that in the case of a vehicle fire or a stolen vehicle, you will be financially compensated according to the market value of your car.
What Comprehensive Insurance Policies Have to Offer
If you want to beef up your insurance policy to be in effect the best that it can be, you will want to consider acquiring comprehensive insurance that covers not only the other driver if involved in a two car accident, but also yourself and your motor. If, for instance, your old lorry was in an accident which resulted in the vehicle being considered a write off, or no longer worth fixing, the insurance policy would have to offer you the equivalent of the market value of your vehicle in the form of a replacement. In addition, a comprehensive policy is responsible for covering most medical bills if you are involved in an accident from which you sustain injuries.
The Opposing Interests of the Insurer and the Insured
Of course, your ultimate goal when it comes to dealing with the financial and physical after effects of a vehicle accident is to get the appropriate amount of monetary compensation that you deserve, up to the maximum figure. Naturally, however, the goal of your insurance agent, no matter whether you have hired top of the line insurance of the very base option, is to close your case by paying you the very minimum amount that you will accept for exchange. Because of these opposing end goals, you will want to be very cautious in dealings with your insurance adjuster to ensure that you are getting the amount of remuneration that you ought to according to the particular circumstances of your accident.