But first, what exactly what is Car Insurance? Car Insurance is a contract between you and your insurance companies. When you apply for coverage, you’re agreeing to pay an auto insurance premium to the insurance company. In return, that company agrees to pay covered cost associate with an auto accident once the deductible has been met under the policy.

If you’ve ever been involved in a car accident, you know how tedious and time-consuming the entire aftermath can be. With the right coverage, you’re spared from negotiating with other drivers or property owners involved in the accident. You’re also spared from managing the costs of replacing or repairing your vehicle.

A good auto insurance can help you deal with a lot of these issues. A good policy can cover repairs and replacement as well as towing service.

Is it a requirement to have car insurance?

So far, car insurance has been imposed in the country for both local and international drivers. However, we suggested foreign and local companies obtain car insurances when drive in Cambodia. Shopping for car insurance

Typically, being a good driver, may qualify for lower car insurance.

What Are the Benefits of Car Insurance?

Car accidents happen all the time, no matter where you drive. It cost government millions of dollars every year due to car accidents.

If you cause a car accident, you might be responsible for any costs associated with it. This includes legal fees, medical expenses, and lost income. Without certain types of coverage, you would likely pay for these costs out of your pocket. Also, if your vehicle is damaged, the insurance covers the cost to either replace or repair it.

Insurance also helps you avoid the devaluation of your vehicle. Some policies help to prolong the value and life of your vehicle. You can’t avoid natural disasters such as a flood from damaging your vehicle. But comprehensive insurance can lower the losses you incur and save you money in the long run.

It also gives you peace of mind to know that your policy protects your family against monetary losses. Without insurance to cover the costs, it might be difficult to pay for repairs to your vehicle.

Car insurance also protects you against a lawsuit, even if you cause significant damage to someone’s property. The insurance safeguards you and helps you with claims that others make against you in accidents. It also covers legal costs.

What Affects Car Insurance Prices?

You might wonder why car insurance prices vary so much. Several factors affect the costs:

• Age of the vehicle: Oftentimes, an older vehicle costs less to insure compared to a newer one. New vehicles have a higher market value, so they cost more to repair or replace. Parts are easier to find for older vehicles if repairs are needed.
• Make and model of vehicle: Some vehicles cost more to insure than others. Luxury and sports cars usually have higher insurance premiums because their market values are higher.
• Risk of theft. Certain vehicles regularly make the frequently stolen lists, so you might have to pay a higher premium if you own one of these.

What Types of Car Insurance Coverage Are Available?

When it comes to car insurance, typically two main types of policies are liability, and comprehensive.

The benefits of car insurance far outweigh the risks as you could end up paying thousands of dollars out-of-pocket for an accident you cause. Make sure to examine your policy closely to know exactly what type of coverage you have, and consider adding other policies if needed. It’s usually better to have more coverage than not enough.

There are 47 insurance companies in Cambodia, however, below car insurance companies are most popular:

• Forte Insurance (Cambodia) Plc: https://www.forteinsurance.com/
• Infinity General Insurance Plc.: httpp://www.infinity.com.kh
• CVI – Cambodia Vietnam Insurance Co., Plc. : https://online.cvi.com.kh
• CB General Insurance Plc.: http://cbinsurance.com.kh
• Campu Lonpac Insurance Plc.

Prepared by KCD