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Why is it Essential to Buy a Car Insurance?

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Why is it Essential to Buy a Car Insurance?

Everyone is running so fast in the rat race of success and all want to win it. But, it is not possible to win this daily race while you walk on feet while everyone is rushing. Be it your thought process, technology, the way of living or your mode of transport, everything needs to be on point. A car has become a necessity of this century because it not only promises comfort but also promises safety on unsafe roads.  But, a car also needs a security cover for offering you a safe ride. This is only possible with car insurance. There is the number of good car insurance in the market from which one can choose any insurance for the safety of his/her vehicle as per requirement. Car insurance is the insurance policy that covers your car against any type of finical loss that you may suffer during an accident or insured car theft. There is a certain amount that a policyholder is required to pay to the insurance company which is called the premium amount.

There are various factors and features that one may concern while finalizing any insurance policy for the car. Requirement differ from one person to another, but we can generalize factors and features while looking for a car insurance as follows –

Two types of car insurance policies –

There are generally two types of car insurance policies –

  • Third Party Insurance – This is the liability only policy cover and it offers cover to any injury/death of the third person caused during the accident of the car. It also offers any damage that is caused to the third person property during the accident. In India, it is mandatory to third party insurance cover for every vehicle owner. This plan also includes compulsory persona accident cover for the owner-driver of the vehicle.
  • Comprehensive Insurance Policy – The comprehensive insurance car policy cover any loss or damage that is caused to the insured vehicle. It also offers Third party insurance cover and personal damage cover also. But, premium amount of this plan is more as compared to the Third party Insurance policy because it offers wide coverage than the third party insurance.

Premium amount – The Premium amount is a very important factor to consider while one buys an insurance policy. Premium amount is the amount that one has to pay to the insurance company. Premium amount can be determined by –

  • City of the customer
  • Model, Capacity, age, fuel type and other features of the vehicle.
  • Age and profession of the customer
  • Claim record of the customers
  • Accessories customization to the vehicle

Insured Value – During the tenure of car insurance, a vehicle is insured for a value that is called the Insured Declared Value (IDV) of the vehicle. It is based on the price of the manufacturer of vehicle minus the depreciation as per the age of the car. There is no limit on the cover for the injury or death that is caused to the third party.

Add-on covers – There are various add-on covers that are offered to the policyholders. These are for the protection of vehicle to ensure for the risks and damage that are not covered under the regular car insurance plans. Add-on features enhance the features of any standard policy but at an extra premium amount.  Some example of add-ons is like zero depreciation, no claim bonus protection, and accidental hospitalization cover.

Insurance Claim – An insurance plan with good insurance claim ratio is always preferred by policyholders. There is now a day’s cashless facility for the repair of the vehicle at the network garage of the insurance policy. Even if, there are no network garages as such, you can take your vehicle to a preferred garage and the claim reimbursement for the expense.

There are many options from which you can choose and customize your car insurance plan as per requirement. One should look at all the important points before geting car insurance policy. You can take help of for choosing the best car insurance that will not only offer a security cover to your vehicle but it also helps an individual to save the hard earned money to flow like water for the expensive repair of the vehicle. Car insurance is the best way to secure your hard earned money for good.