Car insurance is a contract between the owner of the car and the insurance company, to protect the Owner from different forms of financial losses incurred by the car. A car insurance is beneficial when any form of damage occurs to the vehicle through natural calamities or an accident and also provides coverage against theft or burglary. In cases, where in the owner of the car might have caused damage to any other vehicle or property, car insurance is as well beneficial. The motor Vehicles Act of 1988 maintains that those without a third-party car insurance will have to pay a fine of INR 2000 and INR 4000 on subsequent times. Thus, it is essential to know about the various types of insurances available as well as the pros and cons of the same.
Types of Insurances
There are various types of car insurances depending upon the need of the owner. Some of the company’s provide protection to both, the losses incurred by the third-party as well as the owner. There are other policies that provide coverage to third party that has faced damage. The most common types include comprehensive policy which provides coverage to the third party and the owner, while the other is the third-party policy, which protects the insured from the damages caused by the third party.
However, this list is not exhaustive and can be customized depending upon the company.
Perks of a Car Insurance:
The various benefits of an insurance policy are listed below:
- Covers damage caused to insured vehicle: In cases, wherein the vehicle is damaged due to theft, accident or self-ignition, car insurance provides protection.
- Personal accident cover: Car insurances provide accidental cover to those who might face permanent death disability or death due to the accident. It is essential to check with the insurance company as to the pre-determined amount that will be sanctioned in such a situation.
- Large networking: Most of the insurance companies have a large network of garages. Opting to these garages can allow the owner to use a cashless service.
- Third-party liability: In situations wherein the car causes damage to another person or a property, this form of insurance gets the person covered.
- No claim bonus: Whenever a customer has not made a claim throughout the year, he/she is eligible for a bonus during the renewals.
There are a lot of companies offering a car insurance today. In order to decide which one to opt for, it might be beneficial to check on the process of obtaining an insurance and the customer-care facility. It would be beneficial to go for company’s that provide insurance in minimal steps and avoid complicating the procedure in itself.