Insurance is divided into various types; one of the most common in community is auto insurance. Auto insurance can also called as the agreement between two or more parties pertaining to the car or auto mobile that someone possess, by which the insurer fastens themselves to the insured, by receiving insurance premiums, to give the reimbursement to the insured, because of loss, damage, or loss of the profits that are expected, or responsibility law to third parties who may, suffered by the insured arising from an event that uncertain, or gives a payment.
So, the choice of having insurance is not only for transferring or the disseminating of business risks, but also it has many benefits, such as:
1.The sense of security
3.Distribution of costs and benefits are more just
4.Insurance policies can be collateral for obtaining credit
5.Serve as savings
6.Tools spread risks, and
7.Help to increase business activity.