Difference Between Compulsory And Supplementary Car Insurance

What Is Car Insurance?

Car insurance is one of the types of insurance that is associated in the minds of many that it is only optional, and that the owner of the car is the one who determines whether he will insure it, hoping that the truth of the matter is different from that. Regarding civil liability, towards accidents that occur to third parties from unidentified cars, and the process of obtaining compensation is regulated here by the Unknown Accidents Fund.


Commercial Car Insurance

If your business depends on a large number of cars and these cars are an essential part of the business, then reducing losses or damage to these cars is critical to the success of your business. With the program of commercial vehicles (buses, minibuses, trucks, light transport, trailers or lorries) licensed and owned by your esteemed company.

Car insurance as a result of collision, accidental overturn, fire, external explosion, self-ignition, burglary and theft.   
Civil liability towards third parties: Covering material damages that may occur to third parties’ cars


What Is Third Party Insurance?

Through this insurance, the insurance company is obligated to repair the damages and malfunctions caused by the insured car. Third party insurance for other cars, and the repairs or compensation do not include the car with third party insurance or the damage caused, and this insurance is mandatory for all cars to protect the rights of owners of damaged cars.


Advantages Of Third Party Insurance:

1- Third party insurance pays the amounts of damage caused by the insured car to other cars that have been in the accident, and this keeps the car owner from paying any amounts and makes him feel a kind of reassurance about the cars that caused the damage.
2- As for the annual amount that the owner of the car is obligated to pay to the insurance company in the case of third party insurance, it is somewhat reasonable and does not constitute a burden on him.


Disadvantages Of Third Party Insurance:

The most important negative of the third party insurance system is that the insurance companies do not bear the cost of the damages that occurred to the insured car, but only to the other damaged cars, and this means that the owner of the car must repair the fault that happened to his car if he was the one who caused it at his personal expense.


What Is Comprehensive Insurance?

Comprehensive insurance obligates the insurance company to repair the damages and malfunctions caused by the insured car comprehensive insurance, in addition to repairing all the damages of the insured car, meaning that the damages of all cars covered in the accident are repaired, and this insurance is optional for all cars and is not compulsory as insurance against third parties.

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Pros of comprehensive insurance:

1- Comprehensive insurance, in addition to car repair, provides car insurance service in case of theft, vandalism, fire and many other things that may happen to the car at any time. 
2- If the insured car causes the accident, the owner will feel reassured because the insurance will take care of the repairs, and will avoid paying large sums to repair his car.

Disadvantages Of Comprehensive Insurance:

1- One of the disadvantages of comprehensive insurance is that it applies to the date and age of the car’s manufacture, and the comprehensive insurance law is not subject to old cars, because they may break down quickly, unlike a new car. 
2- The second negative of comprehensive insurance is the high annual payments to insurance companies, and this is a burden on car owners who want this type of insurance, especially if they buy their cars through banks and monthly installments.


Benefits Of Car Insurance Are Important

feeling safe 
Car insurance makes you feel safe because any damage gets in your way, especially if the cause is out of your control such as accidents, fire or theft, God forbid, as it is covered and protected under the insurance contract. Thus, your anxiety disappears, and you trust your leadership on the road more.

protection of individuals 
It is divided into two parts: 
protection from material losses; As a result of accidents. 
Protecting society from conflicts between its members, which may turn into quarrels, and the use of force to restore rights, and may reach the courts; But with car insurance, individuals will reduce these disputes between them as the claims end amicably at the insurance offices.

Health and physical protection 
The insurance on your car, compensates you for your injury or the injury of the passengers with you in the car, in the event that you have an accident, God forbid.

Protection from natural disasters 
You will be compensated for any loss and damage that you may suffer as a result of rain, torrential rain, storm or fire.

It gives you alternative solutions to help you in your daily life 
In the event that your car breaks down, the insurance gives you financial compensation to rent an alternative car until your insured car is repaired.


Auto Supplementary Insurance

It shall be in the name of the customer whose name is fixed in the driving license of the insured car, and in some cases it is for the benefit of the bank that lends the customer the car loan “if any.” This means that in the case of compensation, it is paid in the name of the bank whose name is indicated in the car license and the document or the company granting the loan, whatever it is. The type of compensation, whether partial compensation or total compensation. In some cases, some banks allow partial compensation to be paid in the name of the customer directly, and they only require the payment of compensation resulting from the total destruction of the vehicle resulting from total theft, total fire, or massive compensation in the name of the bank.


Conclusion:

It aims to spread awareness and insurance culture among car insurance policy holders to inform them of their rights and duties and the executive steps that must be followed in the event of an accident, whether for the car, for the passengers or pedestrians, as well as for the property of others.


You Can Read More About: public liability insurance