What Is Car Insurance?

Car insurance is a special contract with insurance company, due to which, in case of the insured events stipulated in the document the loss indemnified to his holder will be in whole or in part.

There are some types of car insurance.

The first is an obligatory insurance of a motor vehicle liability. It will be necessary for you if there a case comes when you will be recognized a responsible person for road accident or other circumstances and you will be compelled to make payment to the affected person. This sum can exceed much more your monthly and sometimes and annual income. In such situation the insurance will cover these expenses.

The second option is civil voluntary car insurance of responsibility. The matter is that the insurance by the first option has restrictions on the payment sum. To raise this limit, you should buy the additional policy.

The third kind is MOD insurance (Motor Own Damage) or voluntary vehicle insurance.

You should choose how many policies are worth buying. Of course, all of them often cost not small money. But, if you are a driver-beginner you of course need two policies: insurance of auto responsibility and your car (MOD insurance). If you have two policies you will be protected from a liability irrespective of you or victim are responsible.

It should be noted that it is necessary to choose very much considerably the insurance company in which you plan to buy the insurance policy. The difference will be in the insurance cost, terms of consideration of insured event and other nuances which will be described in your contract.

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