While purchasing a new car, many people face the thought about the possibility of accidents or any damages to the vehicle. One needs to give more time to finding the right car insurance while buying a new car.
Though car insurance is considered an additional cost, it is very useful as it protects against vehicle damage or natural calamities.
There are two types of car insurance, namely, comprehensive and third party liability insurance policy.
A third party liability policy is a base insurance policy, which covers only damage caused to the third party in the event of an accident. A third party car insurance online policy is mandatory in India as per The Motors Vehicle Act, 1988. On the other hand, comprehensive car insurance is a complete car protection policy. This policy covers damage to your vehicle, loss and theft as well as third party coverage.
Following are some of the most important benefits of insuring your car:
A large number of risks are covered
A large number of risks are involved with a car. They can be man-made disasters like thefts, accidents, fires, riots, malicious damages or natural disasters like floods, earthquakes, storms and more. In addition, third-party liability policy covers the damage or injuries caused to any third party person, vehicle or external property.
An individual’s car can be insured for the Insured Declared Value, which is based on the ex-showroom price of the car minus the depreciation of the car subject to its age. However, if you opt for a zero depreciation cover, the depreciation amount is not deducted and the owner is provided with the full amount of the car during total loss.
Savings on premium amount paid
An individual is rewarded with the No Claim Bonus if he/ she does not make a single claim for the entire policy year. Thus, the insurance company provides benefits on the premium. In addition, you can also transfer the NCB to your new insurance provider and enjoy a lower premium payout.
Some insurance policy provides benefits on the own damage premium to those who opt for a voluntary deductible. In addition, during claim free policy years, an individual can also opt for benefits on own damage premium.
Car insurance companies provide various add-ons at an additional cost, like roadside assistance, towing service, personal accident, ambulance and medical expenses. Policyholders can customize it as per their need and preferences.
In an unforeseen accident, sometimes the car can be damaged beyond repair wherethe damages to the car exceed 75% of the IDV. In this case, car insurance plays a vital role as you receive the total IDV amount and the ownership of the vehicle is transferred to the insurance company.
There are many benefits of car insurance renewal or purchasing a new policy, thus, never undervalue your car to bring down the premium. This will result in a drasticdecline in the claim amount.
In addition, make sure that there is no lapse in the payment of the premium because without valid insurance policy the insurance company do not make any claim against an accident.