Car Insurance: A Necessity

Vehicle insurance is insurance for cars, motorcycles, tucks and every other vehicles. Its main use is to give financial protection against bodily injury or physical damage resulting due to traffic accidents and against liability that could arise from incidents in a vehicle. Car insurance may also provide you with damage towards vehicle in a traffic collision, keying, damage due to weather conditions or natural disaster and in case of theft too.
Importance of having car insurance-

  1. In case of any damage or accident to your car or vehicle, including the damage to building or property of a person or damage to a person, the insurance will take care of all the aspects including the expenses and legal aspects too.
  2. Car insurance provides you with comprehensive coverage. It is going to take care of any damage against natural disasters like landslides, cyclones, flood, etc. Also the tragedies made by man are also going to get covered like theft, vandalism, etc.
  3. You always have a sense of security as you’re sure that any damage to your vehicle is going to get covered.
  4. One of another major bonus is No Claim Bonus (NCB). Customers can take this bonus every claim-free year.

In some cases your insurance claim may get rejected, those are-

  1. No valid license.
  2. Second hand car with no insurance
  3. Influence of alcohol or drugs
  4. Car is too old to be repaired
  5. Car repairing without informing insurer
  6. Overuse of the car

Then we know there are 5 types of car insurance which are as follows-

  1. Third-party Liability Cover- It covers cost of repairs and replacements of car body parts and more, cost of hospitals and treatment of third parties and liabilities arising due to death of third party.
  2. Collision damage- It covers cost of repairs of your vehicle that has been reimbursed. To determine this cost its age and Insured declared value are taken in account.
  3. Personal Accident cover- This covers the medical expense of the owner or the driver of the vehicle after the accident.
  4. Zero Depreciation Insurance- This offers the replacement of car body parts when there is any damage to them. And, it also helps with claiming the complete amount of insurance without depreciation.
  5. Comprehensive Car Insurance- This insurance gives highest kind of protection as it covers all the possible costs, whether its damage, natural disasters, theft, damage to third party or property.

In India, government made it mandatory for people to have car insurance. And, every person with a car should be holding car insurance as it is very helpful at times. And, it can save a lot of cost of owner as it is going to be covered by insurers.