Most car owners are aware that buying car insurance is mandatory for Indian citizens under The Motor Vehicles Act 1988. But many of them being new car owners do not completely understand the importance of insuring their cars. This oversight seems to stem from the cost of the car insurance and the fact that they are unable to see any visible results from the coverage. The idea behind an insurance policy for cars is to safeguard the asset against any danger and take care of unforeseeable situations.
Currently, there are two broad types of car insurance policies –
Third-Party Liability Insurance
A third-party insurance plan only protects the car from any third-party damage which means it covers the damage caused to another person or their property.
Comprehensive Plan
A comprehensive car insurance plan not only provides financial protection from third-party liability but also protects your car from calamities, hazards, etc. This type of car insurance is pricier than a third-party liability insurance plan but it gives your car the necessary holistic coverage.
There are multiple benefits of a car insurance policy while some vary depending on the policy you pick to insure your car –
Third-Party Liability Cover
Your insurance policy will cover any damage that is caused to another person or their property due to your car. This is a mandatory aspect prevailing in both types of car policies.
Damage to the insured car
Any damage caused to the insured car by theft, fire, riots, etc. is all covered by the insurance providers. The damage for the same can be availed from them since your insured car is protected by the policy.
Personal Accident Cover
The one biggest advantage of availing of a comprehensive car insurance plan is that it covers the insurer in case of an accident. It covers death by accident and disability by accident expenses along with which the policy takes care of the finances to repair the vehicle.
Natural Calamities
The car insurance policy covers any damage to the insured property by floods, earthquakes, landslides, etc. In most cases, a comprehensive plan will provide this coverage.
Add Ons
Most insurance policy providers give you the benefit of availing additional add-on covers to further protect your car from depreciation, engine protection, and even roadside assistance. These add ons are subject to the insurance policy you choose.
Protection of assets is necessary especially in times of uncertainty. Now you can purchase an insurance policy online from an insurance company at the touch of a button.
