Insurance is defined as the promise of compensation in the time of need or in the case of personal accidents, property loss, diseases or for educational purposes. Insurance may be of two types life insurance and general insurance.
Life insurance is related to personal issues and general insurance is related to automobile or property.
A smart car insurance policy is a compulsory policy which is issued to the car owner as a part of public responsibility to safeguard general public from any sort of road accident, it is compulsory for every car owner. It is a type of general insurance.
There are three main types of smart car insurance policy third party, third party fire and theft and comprehensive policy.
Third party is the minimum coverage required, it compensates against the damage that has occurred due to Injury or accident caused by someone else, third party fire and theft compensates for the damage occurred to the vehicle due to fire or theft, and comprehensive policy is the highest level of coverage.
It protects against the injury to other people along with their cars or damage to the owners vehicle, it also helps I accidents and also helps the person in replacing parts of the vehicle.
Smart car insurance is one of the most important insurances amongst all of them, so that in the cases of some mishap like car accident, there is always help present.
In the beginning, when smart cars were introduced there was no such smart car insurance companies so the drivers had no compensation available in the case of accidents, based upon these circumstances, the first smart car insurance company was introduced in 1930. It was held mandatory for every car owner to insure their vehicles.
The smart car insurance may be in terms of loss or damage occurred in the car due to many factors like accidental means, floods, theft, terrorism, riots or lightning.