When you purchase a new vehicle, you will need to do thorough research with regard to the types of general coverage available on car insurance policies. There are different types of auto insurance. Some insurance covers you and your passengers along with your car in case of an accident, hence why its important to know different types of car insurance in Zambia.
Types of car insurance in Zambia.
According to reputable online insurance sources, types of auto insurance are more than three. In Zambia these includes Comprehensive Insurance, Full Third Party Insurance Motor Insurance, Full Third Fire And Theft Motor Insurance and the GRZ Motor Vehicle Insurance Scheme.
Comprehensive car insurance
A comprehensive car insurance policy can help cover damage to your car from an unavoidable unfortunate occurrence. These include theft, fire, or vandalism. Comprehensive will cover all costs for repairing the vehicle or the vehicle is replaced if beyond repair. This is usually up to the full value of the car. However, this insurance has a deductible. Types of car insurance in Zambia have different prices, this is the amount you have to pay yourself before your insurance company reimburses you for an insured claim.
Third-party car insurance
Third-party insurance protects the interests of the policyholder against damage caused by the policyholder to property or private persons.
This insurance helps reduce the risk and liability of the policyholder in a number of situations. Further, this type of insurance cover is ideal and recommended for cheap and old vehicles that cost less to repair. The preliminary step in understanding how third-party insurance covers operates is by understanding the terminologies used. Some of the commonly used terms related to third-party coverage are:
First-party refers to the owner of a vehicle who has purchased an insurance policy. Second-party refers insurance company where the owner of the vehicle purchases an insurance cover. Third-party refers to the plaintiff for damages caused by the first party.
If the policyholder is involved in an accident involving a third party, the policyholder is responsible for any damage or injury. In the event of an accident, the policyholder must notify the insurance company as early as possible.
Full Third-party and theft insurance
This coverage provides the same compensation benefits for any legal liability for damage you cause to someone else’s property, as well as legal liability for personal injury or death caused by your car to someone else. However, this insurance also covers damage caused by fire to your own vehicle and theft of your car. This is a budget plan that allows multiple people to get the partial benefits of the full package for less money than the comprehensive insurance plan.