Owning a car is very important in our modern-day lifestyle as all of us are in a hurry, but none of us are ever on time. Commuting by a car saves time and makes travelling comfortable and convenient. The future holds uncertainties that may lead to loss or damage to things or lives. Insurance is a contract that protects individuals from loss or damage caused due to these uncertainties.
Know All About Car Insurance
Replacing a car after an accident may burn a hole in one’s pocket, but with insurance, you are protected as the insurance company will pay all major expenses. Car insurance, also known as motor insurance, protects the car from uncertainties like theft, fire, accident, etc. As per the Vehicles (Amendment) Act 2019, it is mandatory for all drivers to buy car insurance. The type of car insurance depends on the amount of coverage that is applicable as per the premium amount and the type of car used. There are various kinds of insurance policies like third-party car insurance policy, comprehensive car insurance policy and stand-alone damage policy.
Benefits of Having A Car Insurance
- Mandatory Requirement – Buying car insurance is mandatory. As per the new traffic rules if a driver is found driving a car without valid car insurance, he or she has to pay a considerable penalty amount and it can also lead to the cancellation of driving license. As precaution is always better than cure, car insurance shall surely save you from a lot of troubles.
- Property And Car Damage Covered – Car insurance provides full financial protection to the insured. Not only damages caused to the policyholder are covered, but damages caused to the third party property are also covered. This reduces the liability of the policyholder. The claim amount depends on the coverage plan chosen.
- Personal Injuries Covered – Medical expenses to cure the bodily injuries caused due to car accidents are covered for the policyholders, so it makes them stress-free as no extra financial burden is levied on them.
- Natural Calamities Covered – Car insurance covers damages due to natural calamities like fire, cyclone, etc.
- Legal Fees Covered – Legal fees and lawsuits are covered under car insurance in case the third party files a case. Legal expenses covered include everything from hiring a lawyer to filing a case.
- Resale Value Of The Car Affected – If a policyholder owns comprehensive car insurance, it increases the resale value of the car, as it has add-on features like zero depreciation policy. The resale value increases provided the vehicle is in a usable condition.
- Car Replacement Guaranteed If Stolen – Every policy has an insured declared value which states that insurer will pay the declared sum amount in case of theft or car replacement.
Car insurance indeed acts as a shield during accidents. Car owners and drivers should take an oath of not driving in an uninsured vehicle, not only for their own safety but also for their financial well-being. There are great insurance providers like Bharti AXA who provide great car insurance policies