Benefits of owning suitable car coverage

Benefits of owning suitable car coverage

Car insurance is mandatory in every state of India. It can help you compensate the loss of huge sum amount during accidents, natural disasters or man-made calamities. Driving a car without valid car insurance is illegal in India. In case of death or bodily injury to a third party or any damage to its car, the car cover policy provides you with necessary compensation. Such type of vehicle insurance is known as third party cover and protects you from any financial losses.

While third party cover takes care only of the third person health, life or property damage repairs, a comprehensive car cover protect your car from any man made or natural calamities like terrorist attacks, theft, riots, earth quake, cyclone, hurricane etc. in addition to third party’s claims/damages.

At times, car coverage could be confusing and difficult to understand. There are certain guidelines that could be followed by car cover buyers which help them choose car policy at cheaper rates and best features. Car cover acts like a great friend at the time of crisis. It covers the losses made in an accident and thus saves you from paying out the huge sum from you.

Some benefits of car insurance cover: •Offers benefit to survivors when an accident results in death •Covers lawsuits, including legal fees brought against you as the result of an accident. Covers the bills of vehicle repairs due to damage cause in an accident.

•Covers damage to your car caused by other than an accident such as fire, theft, flood, etc.

•Car insurance policies allow premium discounts for theft or for owning more than one policy with the same insurer.

•No claim bonus is offered on renewals provided you fulfill certain terms and conditions. You can accumulate and claim a bonus of around 50 to 60 % within a span of 4 -5 years.

While getting a car insurance ‘one-size-fits-all’ insurance policy doesn’t exist.

Different people have different set of needs for their cars. Internet is one medium which can help you compare car insurances under a single umbrella. It will help you not only choose the right car cover but will save time and most likely, unnecessary waste of money. It is good that you compare policies in terms of benefits & features, discounts & deals, flexible payment options and hassle free claim procedures.

One thing to learn while quoting for car policy would be when it comes to deductible on your insurance, you should know how much you will be able to afford. The higher the deductible, the lower your insurance cost will be. Please understand that you pay this amount if you do get into an accident, so if you don’t have an emergency fund, a high deductible, will not make you financially sound in that crisis situation.

Also, understand that your car insurance will cover only those things permanently attached to your vehicle, like your car stereo, damage to seat covers, windows panes, dashboard etc. So, if you keep your CD collection, laptop, sports equipment, or cell phone in your car, you might want to consider the extra protection of a property insurance policy. Take note of what coverage is included in the premium so that you can compare quotes more accurately.