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When you have a valid car insurance policy, you are protected against expenses that arise due to various damages. There are two main types of car insurance policies available to choose from- Third-party and comprehensive car insurance. In India, it is mandatory for all car owners to have a basic car insurance policy. In this case, it is the third-party car insurance policy. But should you always settle for the basic car insurance policy for your car? Read on to know more about car insurance policies.
Different car insurance policies in India
Third-party car insurance
Under this type of insurance policy, all types of liabilities that arise towards a third party are covered. Damages or injuries that are caused to yourself or your car are not covered, making third-party insurance policies cheaper compared to comprehensive car insurance.
Comprehensive car insurance
A comprehensive car’s insurance policy gives you the overall protection in various situations and you are also given the option to extend the coverage by opting for add-ons. This new car insurance policy also provides coverage for damages caused to you and your car making your car journeys safe and secure.
Why do you need a car insurance policy
Getting car insurance for your new car ensures that you are protected in various possible instances against expenses that arise due to damages. Other benefits include-
Eases the burden and the liability
With a valid car’s insurance policy to your name, you can shift the burden and the liability to pay for expenses to your car insurance provider. To be eligible for this, you need to fulfill certain eligibility criteria and file a claim with your provider. Once a claim is filed, the insurance provider assesses the situation and calculates the value of the damages and reimburses or settles the bills for you. This eases your financial stress in times of an emergency.
No Claim Bonus
One might think that getting a car’s insurance policy might encourage reckless driving as the person is covered for damages. But it does the opposite through the No Claim Bonus (NCB). NCB is the discount given to you for every non-claim year. This discount percentage is increased with every consecutive year. A non-claim year is one where the policyholder files no claim for reimbursement, which is possible only when the policyholder drives safely.
Personal Accident Coverage
Personal accident cover in a new car’s insurance policy protects you in case of injury, permanent disability or death caused due to a car accident. This can be really helpful if you are the sole breadwinner of the family.
These are some of the major benefits of getting a car’s insurance policy. If you are interested in getting a new car insurance policy, there are two ways you can do so- online and offline. Through the online method, you can get your car insured from the comfort of your home, but if you prefer getting it through offline modes then you can get in touch with various insurance agents or visit the branch of the closest insurance company! To know more about car insurance, click here!