Everybody needs a mode of transport to travel from one place to another. As people rush to their offices, as students bolt their cars to college, some road incidents may occur daily, resulting in severe damage to the vehicle. As we all know, cars are never cheap to buy; moreover, the maintenance charge is above the sky. Imagine getting your vehicle damaged, and you are currently not financially wealthy enough to repair the car. This is where insurance comes into play.
What is car insurance?
Car insurance is generally a policy that provides financial support in times of accidents or unanticipated situations. It acts as a medium of protection for individuals when met with misfortune. It is essential in India compared to the past accidents caused and affected by vehicles.
Research shows that there are 450000 accidents per annum in India. This makes car insurance so great that it is mandatory to have one if you want to drive a car in India, private or public.
Advantages of Car Insurance
Vandalism or damage to the car
If the insured car is damaged, relax; insurance has your back. Most insurance covers the entire cost incurred—however, some are financed according to the car’s depreciation. The insurance has coverage for any damage it sustains. Therefore, people won’t have to worry about the well-being of their valuable vehicle.
Cashless Network benefits
Insurance companies having a network of garages in the locality could give you penniless service. It is mainly seen with reputed insurance companies. This would save up a lot of costs and help individuals focus more on other essential things.
The company with a network garage could directly contact you without the policyholder’s involvement and assist you with the cashless service. It is of great convenience as you wouldn’t have to stress out and spend your valuable time claiming insurance.
Reduces the risk of liability
In India, it is not permitted to drive a car without third party liability insurance. This is mainly due to the rising reports of car accidents daily. From the total car accidents recorded, the number of times a third party is involved is more than any could imagine.
The car insurance covers any damage caused to a third party, including fatal injury to people or damage to the car. The insurance provides benefits to its survivors when death is encountered with the incident.
For instance, if there happens to be an accident caused by the policyholder that has a frightful effect on a third party, don’t worry; your insurance will cover it.
The third-party liability insurance covers the treatment and service costs of the stakeholders. This leaves the policyholder to concentrate more on their responsibilities than on the incidents that occurred.
Car insurance guides you to a safe and secure driving environment. However, some might go overboard with the confidence of having insurance and cause damage to third parties. To limit such actions, car insurance companies have NCB, which provides additional benefits and coverage if there are no claims filed.
NCB applies to those who haven’t filed claims for over a year. The benefits are usually increasing coverage rates that could vary from 20%-60%. NCB belongs to the policyholder, and if they sell the car, they can use it on the new one. It increases with each year of unfiled claims.
Uncertain events could take a steep on your heart rate as you wonder where to get help to recover from the financial crisis. Car insurance reduces the risk and stress associated with the policyholder and helps overcome such situations.
Imagine getting your favourite car wrecked due to misfortune with nature. This would be a considerable loss and cost you an eternity to revive. Car insurance protects you from the damage caused by uncertain events without draining you completely.
According to the Indian motor vehicle act law, individuals could get a fine of ₹2000 if they are driving a car without insurance. Getting car insurance could be a big save from fines and provide you with external benefits.
Before attaining car insurance, you will have to make payments to the insurer, which is called a deductible, and this will be the amount you’ll have to pay by yourself if you file a claim. For example, if you file a claim for ₹30,000 and the deductible is ₹2000, then the insurer will only cover ₹28000, and the rest will have to be paid by the policyholder.
However, increasing deductibles is inversely proportional to car insurance premiums. As the deductibles increase, the availability of insurance premiums reduces, making it less significant. Furthermore, irrelevant as it won’t have a massive difference from paying out-of-your-pockets.
Several car insurance companies include customising their insurances according to their customer preferences. This enables the policyholders to make changes to their insurance. It will cover basic insurance plans and add-ons at an additional cost which could provide an upper hand for premiums.
An example of add-ons is zero depreciation, where the insurer pays all of the amount claimed by the insurance holder. It provides coverage for total claims for premiums which is generally higher than the standard policy. Other examples include engine protection, roadside protection and NCB protection.
Car insurances are of great importance as the road gets busy. Insurance companies have customer service, which contributes toward safe driving and securing people. You can ring up the insurance company any time and consult your motor matters. This has guided many to take precautions and preventions. Moreover, you can relax and have peace of mind without being stressed about finding funds to finance the repairing of damaged cars. The policy covers any financial damage caused to the property and the third party. If you encounter a car breakdown, insurance could be handy for towing facilities or onsite fixing. The best car insurance would be wholly based on individual preferences and according to the innovative features of particular insurance companies.