Auto insurance coverage is an obligation for all vehicles used at road. It is to ensure that drivers are protected against liabilities which should an incident occur. A usual type of auto insurance are the Third Party Policy and Comprehensive Policy. Other protection can be obtained with accordance to the policy holder choice.

What are a Third Party Policy and a Comprehensive Policy?

Third Party Policy – if you drive a car and hit a car that belongs to B, under the third party insurance, your insurance company only will be responsible to pay compensation on injury, death of driver B or B car passenger and also to B’s car only.

Comprehensive Policy – If the same thing happens and you hold a comprehensive insurance policy, you are being protected from liability that exist as result of death or limb injury of the driver or passengers and car of B and also damages which occurred on your car. The insurance company will also pay compensation to you if your car is lost, stolen or destroyed due to fire.