Essential Benefits of Buying a Car Insurance Policy

In India, car insurance is more than just a legal requirement; it's a crucial safety net for your financial safety and peace of mind. A right car insurance policy offers a plethora of benefits that protect you and your vehicle from unforeseen events on the road. This article explains the essential benefits of having a car insurance policy and how to choose the right car insurance coverage for your specific needs.

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Key Car Insurance Benefits for Policyholders

Have a look at the significant benefits of purchasing a car insurance policy in India:

1. Legal Mandate

   As per the Motor Vehicles Act, at least third-party car insurance is mandatory for vehicle owners to legally ply on roads. A third party policy offers coverage for the death or injury of a third person in an unexpected accident involving the insured vehicle. Moreover, it also covers damages to a third party's vehicle or personal belongings.

2. Financial Cover for Accidents

   Accidents can result in significant vehicle repair and medical expenses. A comprehensive car insurance policy covers damages to your vehicle and medical expenses for injuries sustained by you or other individuals, which is extremely crucial in reducing the economic impact of accidents.

3. Protection Against Natural/Man-Made Calamities

   India's diverse climate poses various risks to vehicles. These include earthquakes, floods, riots, & vandalism. Comprehensive car insurance can safeguard you and your vehicle against such natural & man-made disasters, thus ensuring that you don't bear the expenses for vehicle repair or part replacements.

4. Coverage for Vehicle Theft

   In India, vehicle theft is a prevalent concern, especially in urban cities. If your insured car gets stolen, comprehensive car insurance can compensate you based on your car's IDV (Insured Declared Value) of the vehicle, which is your car's current market worth, thereby helping you recover from the financial loss.

5. Add-On Covers

   While buying a comprehensive car insurance policy, you can opt for add-on covers at an additional premium to widen your coverage. Some of the most popular ones include the Zero Depreciation, also known as bumper to bumper protection cover, as well as Engine Protection, 24x7 roadside assistance, and Return to Invoice, among others.

6. Cashless Network Garages

   Car insurance companies have tie-ups with a large network of car repair garages across the country. In case of a claim, you can opt for cashless repair at these garages and avoid any out-of-pocket expenses.

7. No-claim Bonus

   If you do not raise any claims during the policy period, the insurance company gives you a No Claim Bonus (NCB), which is a reduced premium amount at the time of renewal. NCB in car insurance proves to be a major motivation for safe driving habits and for avoiding any claims.

8. Personal Accident (PA) Cover

   A car insurance policy often includes PA cover for the owner-driver, which ensures that you or your family remain financially protected in the event of an accident resulting in an unfortunate death or permanent/partial disability.

How to Choose the Right Car Insurance Coverage?

Since you now comprehend the significance & advantage of a four-wheeler insurance policy, it is equally crucial to understand how to best pick the right car insurance coverage. While you can opt for third party car insurance coverage if you have an old car, the same may not be enough in case of a new or expensive car.

If you have purchased a new car, the best choice to provide maximum protection would be a comprehensive car insurance policy. Make sure you understand the requirements of the car first while deciding the nature and intensity of the coverage.

Furthermore, keep in mind that all car insurance policies have an expiration date, after which the coverage becomes invalid; hence, ensure to renew on time to keep the coverage active. Also, when renewing your policy, you can choose to modify the coverage by adding or dropping add-ons as required.

Wrapping Up

Selecting a four-wheeler insurance policy is a responsible choice that provides essential coverage for various types of risks involved while driving. Apart from meeting legal mandates, it provides financial protection and peace of mind. With the right car insurance policy and add-ons, you can customize your coverage to meet your coverage needs and drive stress-free. Also, consider purchasing car insurance online to save on your premium cost.