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Car Insurance Policy Terms

2 March 2025

What is a Car Insurance Policy?

Acar insurance policy is a contract between the vehicle owner and the insurance company, where the company commits to covering damages that may occur to the vehicle or third parties due to accidents, according to the agreed-upon type of insurance. This policy aims to provide financial protection and reduce the risks associated with owning and operating vehicles.

Types of Car Insurance

Mandatory Car Insurance

Mandatory car insurance is a type of insurance required by law for all vehicle owners. It aims to cover damages incurred by third parties due to accidents caused by the insured vehicle. This insurance does not cover damages to the insured vehicle itself or its driver.

Comprehensive Car Insurance

Comprehensive insurance is an optional coverage that vehicle owners can choose to protect their cars from damages resulting from accidents, theft, fire, or natural disasters. The extent of coverage depends on the policy terms agreed upon between the customer and the insurance company.

Basic Terms of the Insurance Policy

Mandatory Insurance Terms

  1. Covers damages incurred by third parties only.

  2. Commitment to paying the insurance premium on time.

  3. The driver must have a valid driving license.

  4. The vehicle should not be used for illegal or unauthorized activities.

Comprehensive Insurance Terms

  1. The insurance coverage value is determined based on the market price of the vehicle.

  2. The insured must pay the agreed-upon premium.

  3. The policy may include specific exclusions, such as mechanical breakdowns or damages due to negligence.

  4. A formal report is required in case of an accident to claim compensation.

Insurance Coverage

Damages Covered by Mandatory Insurance

  • Bodily injuries to third parties.

  • Material damages to third-party property.

  • Medical expenses and treatment for injured individuals.

Damages Covered by Comprehensive Insurance

  • Damages to the vehicle due to accidents.

  • Theft or fire.

  • Damages caused by natural disasters such as floods and earthquakes.

  • Towing and repair costs in some policies.

Insurance Policy Exclusions

Certain cases are not covered by the insurance policy, including:

  • Accidents caused under the influence of alcohol or drugs.

  • Using the vehicle in races or reckless driving.

  • Mechanical breakdowns not caused by an accident.

  • Failure to comply with the terms outlined in the insurance policy.

How to Claim Compensation

Required Procedures

  1. Report the accident immediately.

  2. File an official report with the relevant authorities.

  3. Contact the insurance company and submit a compensation request.

  4. Wait for the insurance company's inspection and evaluation.

Necessary Documents

  • A copy of the insurance policy.

  • Police accident report.

  • Photos showing the vehicle’s damages.

  • Additional evidence as requested by the insurance company.

Best Car Insurance Companies

Brokerage Insurance Company is one of the leading companies providing car insurance services. It offers a variety of options tailored to customers' needs, with extensive coverage and flexible claim procedures.

Tips for Choosing the Right Insurance Policy

  1. Compare insurance offers from multiple companies before making a decision.

  2. Read the policy terms carefully and understand coverage limits and exclusions.

  3. Choose coverage that suits your needs and budget.

  4. Check the reputation of the insurance company and customer satisfaction with its services.

  5. Inquire about the required procedures for compensation claims to ensure smooth future transactions.