Automobile or vehicles are peculiar in nature, there is need to insure them, they are usually insured against accident, against theft, or any other damage that they may incur or sustain during usage. The insurance cover guarantees or serves as an indemnity against loss of vehicle, and damage to the vehicle that can arise from or in connection with the use of vehicles, it also covers third party risks.

What is Automobile Insurance?


This is a policy whereby an insurer(the insurance company) agrees to insure any form of vehicle specified in the policy document against certain risks or damages or against their loss for the insured( the owner of the vehicle) who agrees to pay premium monthly for this service. There are so many types of vehicles, and in so many countries of the world, the government laws are usually put in place to ensure that all vehicles that are road worthy get one form of insurance cover or the other because of prevalent risks associated with them. The vehicles include private cars, commercial vehicles, tricycles, agricultural and forestry vehicles, bicycles, trucks, lorries, earth moving equipment that move on the road, etc. anything that moves on wheels and runs on the road needs to be insured against one form of vehicle insurance or the other.

Types of Auto Insurance.

There are three main covers under vehicle insurance. They are as follows: third party only insurance cover, third party fire and theft insurance, and comprehensive policy cover. We look at them one after the other.

  1. Third party only vehicle insurance- this provides statutory insurance protection, it covers the insured for death or injury to a third party arising from the use of the vehicle as well as damage to property of a third party. It covers all cost and expense as a result of injuries or damages sustained by a third party. It also covers expenses for the death of a third party, and any compensation required to settle the third party.


  1. Third party fire and theft- this aside from third party cover also provides succor in the event of loss or damage to the vehicle as a result of fire or theft. Fire can cause some damages or total loss to the vehicle, the cover guarantees that the cost of the reinstatement and replacement is taken care of. In the event of loss, the company bears part payment according to what is contained in the policy statement

3.   Comprehensive policy-this also covers third-party, fire, and theft, but in addition, covers all forms of loss or damage to the vehicle by any form of accident or collision even own damage (when one accidentally damages own vehicle). This policy covers also medical expenses, personal effects, the cost of replacement, etc. it is universal in nature. The only thing here that makes it special for it to provide this wide cover is payment of high premium. The comprehensive nature of the insurance makes it that the event of loss of vehicle, the insurer after investigation will make a good cost of replacement.