Also known as motor or auto insurance, vehicle insurance is a contract between you and the insurance company that protects you against financial loss in the event of a road traffic accident or theft. In exchange for your paying a premium, the insurance company agrees to pay your losses as outlined in your policy. This premium of the insurance is dependent on certain parameters like the value of the car, type of coverage, vehicle classification; voluntary excess etc. In Zambia, third-party insurance is mandatory where only damages and losses caused to a third-party person, vehicle or property are covered.
Vehicle insurance provides protection against the losses incurred as a result of unforeseen circumstances. It helps cover against theft, financial loss caused by accidents and any subsequent liabilities. The cover level of vehicle insurance can be the insured party, the insured vehicle and third parties (car and people).
Types of vehicle insurance
Third-party vehicle insurance (Mandatory) – this is one of the most common types of insurance; in which only damages and losses caused to a third-party person, vehicle or property are covered.
Comprehensive - one of the most valuable types of insurance that covers both third-party liabilities and damages to your own vehicle as well.
Some insurance companies here on Infobwana also offer various add-ons with the comprehensive vehicle Insurance policy such as:
Benefits of vehicle insurance
Third vehicle insurance protects you against financial and legal liabilities towards a third party. On the other hand, comprehensive insurance provides cover to your vehicle against damage due to accident, fire, theft, cyclone, flood etc. Along with this cover, it covers any third party liability. Below a some of the major car insurance benefits:
In case your vehicle is damaged due to an accident, fire, or self-ignition, you are protected. Furthermore, if the car suffers losses due to burglary or theft, strikes or riots, your insurance policy covers these. Another benefit of car insurance is that it covers loss or damaged while in transit by rail, inland waterways, air, road, or lift.
Another advantage of car insurance is that it offers personal accident cover for a predetermined amount. Personal Accident cover provides protection against permanent total disability, Death due to an accident. Furthermore, this cover can be taken for other passengers on an unnamed basis (maximum as per the vehicle’s seating capacity) for a predetermined amount under the car insurance policy.
Car Insurance companies maintain a large network of garages across the country. This ensures you receive cashless services in all these locations, in case the need arises. This feature makes it convenient to avail of repair services in case of any damage to your vehicle.
If your car is involved in an accident that results in damage or loss to the property of any third parties, it is covered under the car insurance. Furthermore, if you face any legal liabilities in case of any bodily injury or death of a third party, your car insurance protects you against the same.
One of the major advantages of having car insurance is the no claim bonus (NCB). Customers are eligible for this benefit for every claim-free year. This may be available as a discount on the premium, which makes car insurance even more affordable.