Insurance is a good way to manage your risk as it helps to provide protection against unforeseen financial losses. There are four major types of insurance you should have; health, long-term disability, life and auto insurance
WHICH INSURANCE IS BEST FOR BIKES IN ETHIOPIA
Insurance is a good way to manage your risk as it helps to provide protection against unforeseen financial losses. There are four major types of insurance you should have; health, long-term disability, life and auto insurance.
If you have a bike and want to obtain safety, you should consider purchasing auto insurance.
What is Auto Insurance?
Auto Insurance is a contract between a person and an insurance company. It provides protection against financial loss in the event of theft or accident in exchange for a premium paid to the Insurance company. The Insurance company pays for losses as outlined in the policy.
Coverage provided by auto insurance are:
Property: Such as theft or damage of your vehicle
Liability: A person's legal responsibility to others for property damage or bodily injury.
Medical: Cost of treating injuries and sometimes funeral expenses.
Auto insurance coverages are purchased individually to enable a customer to go for the one that suits their budget and needs.
The time frame for issuing policies is for six-month or one year, and they are renewable. The insurance company sends an alert when it's due to pay the premium and renew the policy.
Who is covered by Auto Insurance
The auto insurance policy covers you and other family members listed on your policy, whether driving someone else's car (with their permission) or your car. And also coverage for someone that is not on your policy but driving your car with your permission.
Is Auto Insurance Coverage Compulsory In Ethiopia?
It is a requirement to have auto insurance in Ethiopia before keeping or using a vehicle on public roads. Every state requires bike owners to carry.
Property damage liability: This compensates others for damage caused by you or another driver that is operating your vehicle to another property or vehicle, such as a utility pole, building or fence.
Bodily injury liability: This covers costs associated with death or injuries caused by you or another driver while driving your car.
Some states also require you to carry :
Personal injury protection (PIP) or Medical payments: This provides compensation for medical expenses for you or your passengers in case of injury. It also covers lost wages or other related expenses.
Uninsured motorist coverage: This compensates you when a driver who doesn't have auto insurance causes an accident or, for instance, hit-and-run.
It is also possible for you to purchase underinsured motorist coverage, which covers costs when another driver does not possess adequate coverage to pay for the charge of a serious accident.
While most auto insurance covers damage caused by your vehicle, it does not cover damage caused to your vehicle. To cover your vehicle, you should consider these other coverages :
Collision: Compensates you for damage caused to your vehicle that results in a collision with another object or vehicle. For example, a tree. Though collision coverage does not compensate you for normal wear-and-tear or mechanical failure, it covers damage from rolling your car or potholes.
Comprehensive: This provides coverage against theft and damage that is caused by an incident that is not a collision. Such as flood, fire, vandalism, falling trees or rocks and other hazards.
Glass coverage: This provides coverage from windshield damage. It may also include rear windows, side windows and glass sunroofs.
NOTE: The insurance that is best for your bike in this great country depends on the one that suits the area you live in and the one you can afford.
If you live in an area with trees, for example, you should consider getting comprehensive insurance.
Although auto insurance is compulsory in Ethiopia, Few people still go without purchasing one. It is better to purchase auto insurance for financial protection against loss, theft, injury or death in case of an accident.