Insurance is a contract between the person who buys Insurance and an Insurance company who sold the Policy. By entering into contract the Insurance Company agrees to pay the Policy holder or his family members a predetermined sum of money in case of any unfortunate event for a predetermined fixed sum payable which is in normal term called Insurance Premiums. The same way Car insurance is contract between two parties, if the car of the policy holder gets damaged due to a road accident then the policy holder can claim insurance and a specified sum of money will be given to him.

I had a personal experience of buying a car insurance. I bought a new car and as soon i bought it i insured it and the insurance company offered some benefits which i will list below.

-That is the company will provide up to $500 cover for personal items stolen from your car.

-Insurance company will provide legal liability for up to $20 million

- Discounts will be provided if you qualify as a safe driver or if you choose to exclude drivers under 30.

-If the car has been stolen and not been recovered a rental car will be provided for a duration of 14 days.

-Further more discounts may be given if you have been with your current insurer for more than 5 years.

When I left the car insurance office after getting my driver’s license i started back to my house and on the way back home i hit a bicycle guy and my car had some small damages it was so awkward to look at it because the car was a brand new one. Thank god that i insured my car, so i was able to claim some benefits through the insurance company and repaired those small damages. It is very important to have a car insurance because if the car meets with a huge accident then by having insurance a considerable amount of money will be saved.

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