The Motor Vehicle Act mandates that everyone who owns a new or used vehicle should have Third Party liability insurance, to which comprehensive cover can also be included.
As it may be evident from the name, Liability coverage will help protect you against legal and financial liabilities towards a third party. At the same time, comprehensive coverage will defray the cost of repairing damage caused by an accident, theft, fire, flood, cyclone, and other incidents.
Following are five key benefits of having car insurance:
1. Damage or loss to the insured vehicle
Car insurance protects you from bearing the entire cost of repairs or replacement in case the vehicle is damaged from an accident, self-ignition, or fire. Additionally, if there has been theft or burglary, vandalism, strikes, or terrorism, and your car has sustained damage, your insurance policy will help cover the cost of these. Your policy may also cover damage or loss during transit by air, road, rail, inland waterways, or lift.
2. Personal accident cover
Your car insurance may offer a predetermined amount as personal accident cover, which will give you protection against the cost of death due to the car accident and permanent total disability. Under the car insurance policy, other passengers can also benefit from personal accident coverage on an unnamed basis (depending on the car’s seating capacity).
3. Large network of garages
Many leading car insurance companies maintain a widespread network of garages throughout the country, which provide cashless services in case your car is damaged.
4. Third-party liabilities
If the accident results in loss or damage to the property of a third party, your insurance will help cover its cost. Your car insurance will also protect you in case of legal liabilities caused by the bodily injury or death of a third party.
5. No claim bonus
If you are a good driver with car insurance, you can take advantage of the no claim bonus (NCB), which benefits customers who are eligible for every claim-free year. Many firms give this in the form of a discount on the price of the premium, which increases the affordability of car insurance.
Following are two critical factors that you should consider when selecting car insurance from different insurance firms:
6. Fast and efficient process
From getting a commercial auto insurance quote to claiming coverage, the insurance company should provide fast and efficient service. You might lose your patience if the insurance process is too slow and complex. Always look for a company that promises and provides a simple, fast, and efficient insurance process.
You can even opt for purchasing the policy online for added convenience. However, to protect yourself from being scammed online, ensure that you have selected a reliable company with a clean track record.
7. Customer support
Selecting an insurance company that provides professional and timely service both pre and post-insurance purchase is essential. Look for a company that is trusted and recommended for its reliable and efficient customer support service.
What are the Main Requirements for Getting Car Insurance
We have explained the importance of getting car insurance; it is also essential to know the basic requirements that you would have to fulfill for getting car insurance.
1. Driver (or drivers’) information
The insurance company will ask you to share your details and other drivers (if anyone else will drive the car regularly). Personal information generally includes the driver’s name, date of birth, license number, and license insurance date. The insurance company might also enquire about your driving history and any information subjected to prior accidents or license suspensions. Also share, if you have recently passed the safe driving course.
2. Vehicle and Insurance Information
Vehicle information inquiry is less in-depth than driver information. They usually ask for the year, make, model, and VIN of your car. They might also ask you about the date of purchase of your vehicle, its registered owner, the mileage of your car, and where you store the car. They might also request information about your previous car insurance policies. You would have to share information about the carrier and the expiration date of the previous policy.
Most of us underestimate the benefits of having car insurance. You can only understand its actual long-term benefits once you have your car insured. Therefore, we highly recommend you to get your car insured because it will give you complete peace of mind. You wouldn’t have to worry about facing financial difficulties in case of any loss or damage to your car.