What is car insurance? Why is it important?

Auto insurance is an agreement you enter into with an insurance provider that protects you from monetary loss in the case of a crash or theft. The insurance provider promises to reimburse your losses as stipulated in your policy in return for you paying a premium. Auto insurance covers the following:

  • Property damage or robbery of your vehicle
  • Liability – your legal obligation to someone else for bodily harm or property damage.
  • Medical expenditures include the treatment costs of injuries, rehabilitation, and occasionally lost pay, as well as funeral expenses.

Most states need basic personal auto insurance, while rules vary. Auto insurance protections are priced separately (a la carte), allowing you to tailor coverage levels to your specific requirements and budget. Policies are often issued for six months or one year and are renewable. When it’s time to renew your coverage and pay your premium, the insurance provider sends you a notification. With multiple award-winning titles, G&M is considered to have some of the top car insurance in Singapore by many.

Who is protected by my car insurance, and under what conditions?

Your vehicle insurance coverage will cover you and any other relatives on your plan, whether you are driving your car or someone else’s (with their permission). Your policy also covers you if someone that is not on your plan drives your vehicle without your permission. Your vehicle coverage solely covers personal driving, such as commuting to work, conducting errands, or going on a trip.

car insurance

It will not protect you if you are using your automobile for business purposes, such as delivering pizzas. Personal vehicle policy will also not cover you if you use your automobile to carry passengers via a ride-sharing service like Uber or Lyft. However, several motor insurers are now selling extra insurance packages (at an additional fee) that extend coverage to vehicle owners who provide ride-sharing services.

Is vehicle insurance coverage required?

The requirements for auto insurance differ by state. If you are leasing a car, your borrower may have additional restrictions. Just about every state law requires car owners to have the following:

  • Bodily damage liability includes the cost of injuries and fatalities incurred by you and the other driver while driving your vehicle.
  • Property damage responsibility – compensates others for damage caused by you or other driver driving your vehicle to some other automobile or another asset, such as a fence, structure, or utility pole.