Benefits of Buying a Car Insurance Policy

If you are looking to buy a new car, you would inevitably spend hours researching about the latest model available in the market, choosing the right colour, and looking for the best safety features to be installed in your car. But, you, like millions of others, may not pay attention to another vital aspect of buying a vehicle, i.e., buying a car insurance policy.

Most Indians have little or no knowledge about car insurance policy, and usually, they purchase a cover mainly to oblige with the legal requirement. But, if you do your research well, you would know the various benefits of car insurance and its importance in securing your finances in the event of an accident.

But, before we list down the car insurance benefits, let us first understand the concept of car insurance and how it works.

If you do not meet with any accident, you lose the premium amount you pay for covering the risks. But, for every year of no claim, the insurance company rewards you with No Claim Bonus (NCB).

As per the Motor Vehicles Act, every car owner, irrespective of whether you buy a new car or a used vehicle, you must have third-party car insurance. If you are looking for complete protection that covers you, your vehicle and third-party liability, you can consider buying a comprehensive car insurance policy.

 

Benefits of car insurance

1. Protection against natural calamities

It is no doubt that natural disasters like earthquake, floods, rain, cyclone, can cause massive destruction. It can lead to loss of life and properties, including your car. You can protect your vehicle from damages due to natural calamities and get financial protection if you have a car insurance policy.

2. Protection against theft

Car theft is a common problem, especially in cities. Imagine you park your car outside your home and fail to locate it the next morning. It would be devastating, isn’t it? It can be a massive financial loss. But, you can recover the damage if you have a comprehensive car insurance policy that covers theft and loss of the car. Under a comprehensive insurance plan, the insurance company pays the IDV (Insured Declared Value) of the vehicle.

3. Flexibility to choose Add-on covers

You can extend the scope of your car insurance coverage by purchasing add-on covers, which are also known as riders. However, you must know that you can buy riders only if you have a comprehensive policy. There are different types of add-ons that you can choose to suit your specific needs.

Some of the common add-ons that most people buy are roadside assistance cover, zero depreciation cover, engine protection cover, passenger cover, etc. You can buy any number of add-ons you want as per your need. However, the more number of riders you buy, the higher will be your premium.

4. A large number of garages

If you meet with an unfortunate accident that damages your car, your car insurance policy will pay for the expenses incurred on the repairs. Generally, the insurance company have collaboration with several garages across cities, which are known as network hospitals. You can get your car repaired from any of the garages that are part of the insurer’s network; the insurer will directly settle the bill with the garage. When you buy car insurance online, you must check the list of network garage on the insurer’s website to find the garage in your locality.

5. Protection against accidental damages

Car accidents can be difficult to deal with; it causes not only mental stress but also financial loss.  A car insurance policy can help you deal with the tension to a fair extent by providing compensation for the damages to the car and treatment of the physical injuries. In the event of death, a car insurance policy provides benefits to the survivors.

6. Coverage against third-party liability

Third-party insurance is a mandatory requirement for all car owners. This means if you get involved in an accident that causes damage to the other party’s vehicle or bodily injuries, the insurer will pay for the expenses. If you buy a comprehensive policy, it not only covers the third-party liability but also helps you get compensation for damages to your car.

7. Fulfil legal obligation

Driving without a valid insurance cover is a punishable offense, and it can attract a hefty fine. To avoid this fine and comply with the rules, you should buy a car insurance policy.

Thus, there are several benefits of buying car insurance. While you buy your policy online, you can compare the car insurance plans and choose the one that best suits your needs and has an affordable premium.