Compulsory car insurance is one of the most widespread insurance policies in Egypt since 2007 Having a car has become a necessity in most home

The 2 Types of Car Insurance in Egypt | Faydety

Compulsory car insurance is one of the most widespread insurance policies in Egypt since 2007.Having a car has become a necessity in most home, and to be at peace when you’re traveling, running errands, or driving to work in your car you must have an insurance policy for both yourself and your car.&nbsp;<h2>Car insurance comes in 2 types:</h2>&nbsp;<h2>1] Compulsory Car Insurance:&nbsp;</h2>&nbsp;One of the most popular insurance policies in Egypt since 2007. It is obligatory for anyone who obtains or renews a car’s license to purchase a policy from the various car insurance companies’ kiosks located inside each local Department of Motor Vehicles office.&nbsp;Compulsory car insurance covers damage caused to a third party by the car owner. The Unidentified Traffic Accident Fund compensates victims’ families with up to 40,000 EGP in case of death. If a hit and run accident results in total or partial disability or any other damage (except damage to other cars including privately owned, taxis, buses, and trucks) the victim may be compensated by up to 10,000 EGP according to the severity of each case.&nbsp;The victim must inform the insurance company within 7 days of the accident so that the company may start the proper procedures.&nbsp;<blockquote>Supplementary car insurance is very important</blockquote>&nbsp;<h2>2] Supplementary Car Insurance:</h2>&nbsp;This is the 2nd type of car insurance. The insurance policy is in the name of the car owner (whose name must be on the driver’s license as well) but the compensation is usually accorded to the bank or loaning authority if the owner acquired a car loan in order to purchase the vehicle.&nbsp;On occasion the bank will grant the policy owner partial compensation in case of partial theft but the bank will always stipulate it receives total compensation if the car is stolen or totaled in a fire for example.&nbsp;<h2>What does supplementary insurance cover?</h2>&nbsp;<ul style="list-style-type:disc;"><li>Partial damage that occurs to the car. The insurance company will pay the repair fees or pay for spare parts if the car is in an accident or a fire.</li><li>The insurance company pays out the entire insurance amount if the car is a total loss.</li><li>The insurance company will compensate any third party affected by an accident caused by the car owner.</li><li>The passengers in the car at the time of the accident are covered by personal accident insurance.</li></ul>&nbsp;When you plan to buy a car one of the most important things to consider is car insurance. It doesn’t matter whether you pay for the car yourself or with a car loan, having car insurance is a must.&nbsp;If you are considering a car loan check Faydety’s <a href="https://www.faydety.com/en/borrow/car-loan">car loan calculator</a>.&nbsp;<a href="https://www.faydetyinsurance.com/en/car-insurance">Insure your car</a> through Faydety right now!

Compulsory insurance is one of the most popular types of insurance available in Egypt since 2007

The 2 Types of Car Insurance in Egypt

Insurance is a contract, in the form of a policy, in which an individual or entity receives financial protection and/or compensation against losses from an insurance company. Insuring something means diverting the burden of payment for its loss from a personal responsibility to one that the insurance company bears on your behalf, in a certain percentage, depending on the type of insurance you have.&nbsp;&nbsp;The insurance company relies on calculating the probability of a loss or damage to an insured asset. If there is a high probability, then the insurance cost tends to be expensive; on the other hand, if the probability is low, the insurance cost tends to be relatively cheaper.&nbsp;Let's start with the basics.&nbsp;<h2>Insurance Policy:</h2>&nbsp;As stated briefly above, an insurance policy is a contract between you and an insurance company. This policy outlines your agreement's details and determines the claims that the insurer is legally required to pay in exchange for a premium. It essentially states that the insurer must pay for any loss or damage caused by risks covered under the policy.&nbsp;<h2>Insurance Premium:</h2>&nbsp;An insurance premium is a certain amount of money that you need to pay periodically in exchange for the maintenance of your chosen insurance policy. If you are unable to pay the premium, the insurance policy will be forfeited. If this happens and you decide you would like to keep your coverage, you may be required to pay a fine or charge a higher premium accordingly.&nbsp;<blockquote>The insurance company relies on calculating the probability of a loss or damage to an insured asset</blockquote>&nbsp;<h2>Types of Insurance:</h2>&nbsp;There are many different types of insurance. Though it is possible to divide them into two basic categories, under which the other types of insurance fall, the two categories are:&nbsp;<h2>Life Insurance / Health Insurance</h2>&nbsp;Life insurance is a contract between you and an insurance company where, in exchange for premium payments paid by you during your lifetime, the company will pay a sum of money to your beneficiaries after your death.&nbsp;&nbsp;Health insurance covers medical expenses that may arise due to illness. These expenses could entail costs of hospitalization, cost of medicines, or medical consultation fees.&nbsp;These insurance types are primarily based on individuals, although some countries go one step further and provide pet insurance. This is because, at times, the cost of medicines and veterinarian visits are higher than the costs of individuals.&nbsp;<h2>Property Insurance / Disaster Insurance</h2>&nbsp;This type of insurance reimburses an individual or business and protects a physical property against loss from theft, fire, natural disasters, etc. Property insurance covers the building or structure itself as well as its contents, whether personal or corporate, including furnishings, inventory, and other items.&nbsp;Get your <a href="https://www.faydetyinsurance.com/en">Insurance Policy</a> Now through Faydety!

What do you know about the Insurance system in Egypt? and what's its Policies, Premium, and kinds? All you need to know about insurance

The 2 Types of Car Insurance in Egypt

Compulsory insurance is one of the most popular types of insurance available in Egypt since 2007

Car insurance comes in 2 types:

1] Compulsory Car Insurance:

2] Supplementary Car Insurance:

What does supplementary insurance cover?

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