Why Car Insurance, Benefits of car insurance

Why car insurance?

The answer is simple. Car Insurance is mandatory by law. Driving around without valid car insurance is illegal in India. In case of death or bodily injury to a third party or any damage to its car, the car insurance policy provides compensation of up to Rs 1 lakh. Such type of vehicle insurance is known as the third party insurance and it protects not only you but also other people or family members who may be riding / driving you car.

Comprehensive car insurance protects your car from any man made or natural calamities like terrorist attacks, theft, riots, earth quake, cyclone, hurricane etc in addition to third party’s claims/damages. At times car insurance can be confusing and difficult to understand. There are certain guidelines that should be followed by the Car Insurance buyers while choosing the policy. Car insurance acts like a great friend at the time of crisis. It covers the losses made in an accident and thus saves you from paying out the huge sum from your pocket.

Benefits of Car Insurance

All the states in India require a minimum amount of insurance. Car insurance can help offset the loss of huge sum in the following manner:

Ø Provides benefits to survivors when an accident results in death.

Ø It covers lawsuits, including legal fees brought against you as the result of an accident.

Ø Covers the bills of vehicle repairs due to damage caused in an accident.

Ø Covers damage caused by other than an accident for example, theft, fire, etc.

Ø Additional discounts: Car insurance policies allow premium discounts for theft or for owning more than one policy with the same insurer. It also provides added advantage to extend coverage to others driving your car with your permission.

Ø No Claim Bonus: If you do not make a claim during the policy period, a No Claim Bonus is offered on renewals provided you fulfill certain terms and conditions

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