Every car owner has different reasons for purchasing a car. Not only does a car fulfill the need to travel while going out with family. But it is now a status symbol. Hence, there are endless reasons one purchases a car for. However, if you buy a car, it is also imperative to maintain it properly. And safeguard it, which calls for insurance. An accident or damage is usually the last thing that comes to our mind while purchasing a car. To face any such situation. Thus, it is essential to invest in a car insurance policy because it allows you to file a claim in case of any mishappening.
Earlier, people used to invest in car insurance policies only because it was mandatory. But looking at the current situation of our roads, where we can spot potholes, unruly drivers, and traffic rule breakers, owning a car insurance policy has become more of a necessity.
Here is a small guide to make you understand why you should invest in the best car insurance policy in India, along with other details of car insurance.
Car Insurance Types
- Third-party insurance: Third-party insurance covers only the damages done by your vehicle to the third party. May the damages have been done to the third party’s property or vehicle, all such losses borne by the third party are covered under such insurance policy. However, it doesn’t cover damages such as theft, or an accident of your car. The insurance provider also offers coverage against any liability that causes permanent injury or death of the third party or any damage to the third party’s property.
- Comprehensive insurance: A comprehensive insurance policy protects your car against thefts and damages accrued on your vehicle. Furthermore, a comprehensive insurance plan also provides coverage against man-made acts such as riots, thefts, and natural disasters such as floods, storms, earthquakes, etc. Also, the insurance policyholders get a personal accident cover for themselves and any other passenger traveling in the car in case any accident happens.
Lapsed car insurance may increase the price of renewal
Sometimes, you may neglect to buy a car insurance policy if you do not intend to drive your car for an extended period. Or, at times, you might forget to pay for the insurance renewal. However, you must know that if your insurance coverage lapses and you do not renew the same, it may increase the renewal amount exorbitantly. Hence, it is wise not to let your policy lapse and pay for it before the due date.
Even a single-day policy lapse can lead to higher policy purchase rates. So, if you are not driving your car for a long period for any reason. Consider contacting your insurance company for any viable solution rather than committing the mistake of not purchasing an insurance policy.
Personal car insurance doesn’t cover Commercial Usage
Most insurance companies do not cover your car when you purchase a personal insurance policy and start using it for business purposes. Hence, you need to be diligent while using your car for any commercial purpose, such as delivery business, cab driving, or other means.
If you start using your vehicle for any commercial purpose, make sure that you contact your insurance provider and ask them to update your policy and offer you a solution that covers commercial usage.
Exclusions of car insurance
A car insurance policy is a boon for every car owner as it covers them against a lot of concerning factors. However, certain things are not covered by your car insurance policy; hence, you need to be informed of these exclusions that you cannot claim.
- Mechanical or electrical breakdown
- Regular wear and tear of the car
- Tyres, Tyre tubes
- Loss or damage happened due to war or mutiny
- If the accidental car was driven by a person who does not hold a valid driving license
- Depreciation
- If the car was being used for some other reasons. Rather than the limited purposes mentioned in the terms and condition
- If the person was under the influence of alcohol or any other drug while driving the car
Importance of having a car insurance policy
It’s always better to be safe than sorry. This saying rightly applies to a car insurance policy. Car insurance is important because accidents are often unforeseen. And owning an insurance policy is like having a shield that protects you. In every possible aspect in case an accident occurs. Want to know why a car insurance policy is essential? Read on to find it out yourself:
Coverage of risks
Going behind the wheels is no less than a roller coaster ride that exposes you to thrills and risks. Along with the ease and convenience that a car brings along for transportation. An accident, theft, fire, and malicious damage to natural disasters such as storms and earthquakes, are all possible risks for your car. However, if you buy new car insurance online, you can have peace of mind as all such risks are covered under the same. Furthermore, in the case of third-party liability, the insurance companies also cover the damage caused to the third party.
Accident coverage
Another reason it is important is that it also offers a predetermined amount of coverage. In case of a personal accident. It safeguards the owner and offers financial iprotection against personal disability or death during an accident.
No claim bonus
Many insurance companies offer their customers no claim bonus.Which can be used if you haven’t made a claim in a particular year.
Conclusion
We hope that this article clears the air about why car insurance policies are imperative for every car owner and a few other things that you should essentially know while purchasing an insurance policy. No matter what, a insurance policy can save you from running down into a financial crunch. If you meet with an accident. So, what are you waiting for? If you have been beating around the bush and escaping the purchase of an insurance policy. Make sure that you purchase it now to safeguard yourself.
