Why Do You Need Car Insurance?

Published on 16-Mar-2023

The demand for one's own vehicle is at its peak to ease one's mobility from one place to another. Several people rely on public transport to get around. They face many difficulties in their daily commute to their desired locations.

A haphazard road traffic and the cost of daily public transportation load heavy on one's pocket. Everyday struggles make us less reliant on public transportation. We prefer our own vehicle to save time and money when traveling.

The automobile industry and technology have seen a surge. This makes it more affordable to purchase a vehicle. This adds flexibility to our traveling.

The goal of this is to simplify our lives. It is not to protect us from any potential dangers of driving on the road. The recent reports on accidental loss or damage in India have propounded the safety and protection against car/vehicle accidents.

We need to be financially prepared for any accidents, theft, losses, or damages caused by third parties. How much do we need to plan for? These all concluding factors emphasize the requirement for a car insurance in India.

Having car insurance can protect you from unfortunate incidents. It offers many financial benefits and some add-on covers. These covers are available to those that are insured.

To make you financially independent and more secure, car insurance plans offer wide insurance benefits and a lump sum to pay for the loss or damage of your vehicle. Let us discuss the types, features, and inclusions of the car insurance plan.

Know More About Car Insurance In India

Car insurance or motor insurance provides financial protection and support against any damage or loss to a vehicle due to an event of accident, theft, or natural disaster. It ensures protection coverage for theft and burglary.

In case of any harm or damage to a third party, it also includes the policy benefits for third-party liabilities. It is essential to take insurance coverage for some safety reasons that affect your car as per the Insurance Regulatory and Development Authority Of India IRDAI.

What Are The Types Of Car Insurance In India?

Car insurance has become an essential cover for every car owner as it provides insurance coverage for various accidental and natural damages to one's vehicle. Based on the loss, involvement of third parties, and damage to the insured person, car insurance comes in several types. Let us discuss its type one by one:-

Comprehensive Car Insurance:

In Comprehensive Car Insurance Plan, a car insurance company provides insurance coverage to both third-party liabilities and damages that happened to your own car.

Third-Party Car Insurance:

This insurance plan covers damages due to accidents, normal wear and tear, accidental loss, and damage to a third party. Third-party car insurance provides benefits to those involved in an accident. It also covers the cost of any damage caused by your car.

Choosing a third-party car insurance plan in India is mandatory for all vehicles. This includes both commercial and private vehicles. This is according to the Motor Vehicles Act, 1988.

Standalone (OD) Own Damage Cover:

It covers any loss or damage of your car/vehicle due to an accident, theft, burglary, or natural calamities. It offers you financial backing or protection against any mishap or accidental damage to your motor vehicle.

A depreciation cover can sometimes be used to replace the parts of a vehicle that have been accidentally damaged. This can be done without the need to pay an insurance amount. These all benefits are parallel to the market value of the car.

Personal Accident Cover:

It is mandatory for all general insurance companies to offer personal accident cover to owner-drivers as their third party. This is according to the General Regulation (`GR`)-6 of India Motor Tariff, 2002. It offers financial protection to the owner-driver. This protection is in case of injury, damage, or disability caused by a car accident.

Why Do You Need To Buy Car Insurance Online?

If you own or are thinking of buying a car, you need car insurance. This will protect your financial assets and cover any physical losses due to an accident.

It assures all financial backing not only for you but also for third-party liabilities attached to an incident. To protect your motor vehicle, you need car insurance. If your vehicle does not have an insurance policy, it is not protected.

Let us discuss some key features of car insurance that are listed below:-

Effective Investment Plan For Future:

Investing in car insurance provides financial backing and roadside assistance. This covers losses such as theft, damage, death of a third party, liabilities, and accidental injuries. Your insurer will pay a compensatory amount in case of vehicular damage or injuries caused due to an accident.

Reduce One's Liability:

Buying a car insurance plan is beneficial. It offers safety and financial backing of the third party in the case of an accident caused by your car/vehicle. It offers monetary benefits to the third party member if he/she gets any injury, damage, loss of vehicle, etc.

Financial Safety To Owner-Driver:

Not only the insured car owner and third-party liabilities are covered under this plan. According to the General Regulation (GR)-6 of India Motor Tariff, 2002, an insurance plan must be provided to owner-drivers.
In case of any injury or harm to the owner-driver, the insurer will offer them coverage benefits.

Offer Financial Compensation To The Family Of The Deceased:

This plan also provides financial support to the family members of the deceased. It acts as a financial safeguard to protect the family members from financial difficulties after the death of the insured person.

The family of the deceased will receive compensation, which has been enacted under the Motor Tribunals Act. This has reduced the financial burden and expenses of the family.

Offer Peace Of Mind & A Sense of Stress-Free Life:

If you are financially protected, you need not think about the consequences of any harm that may affect you financially. A car insurance plan offers several benefits. These benefits are for the car owner, third party, or the family members of the deceased. This ensures that there are no financial restraints.

Easy Car Insurance Claim Process:

One can raise claims during the policy period for any loss or damages to their vehicle to their chosen car insurer. It is an easy, convenient, and step-by-step procedure. An insurer will provide a claim amount or replacement of damaged parts after verifying the whole incident.

Buy Car Insurance Policies Online With Policy.Online

Policy.Online offers many car insurance plans from top IRDA approved insurance companies in India. You can compare and choose a preferred plan for your car. Policy.Online offers various add-on covers for your vehicle. Choose one to add additional security. Car insurance renewal is easy. Follow the step-by-step process online. If you run into any issues or have questions, take expert advice.