Car Insurance: Why One Must have it?

Buying your car with your own money is a dream that everyone must have had at least once in their lifetime. The joy of purchasing your car, sitting in it for the first time and driving it, is a different experience. It not only makes you happy but also increases your confidence in making or purchasing things on your own. While purchasing a car we check many things, such as comfort features, safety features, design, etc. When you purchase a car, you get Car insurance included in the price. Also, when your car is new, you drive more cautiously to avoid any accidents. However, after a year or so, when you get used to your car and time comes to renew the insurance, not all are that much interested as they were at the time of buying their car. Whether your car is new or old, one must purchase Car insurance as it not only helps you to save money but also gives mental peace, that your car is covered in case of an accident or mishappening. Car insurance is the best gift for your car and is offered with multiple features by many different insurance companies.

Car insurance can differ from company to company as they add multiple features to increase the cover or protection for both the car and the people riding in it. Car insurance is an annual premium that one pays, to cover all the expenses for their car, in case of an accident. Not only the car but it will also cover the people sitting and traveling in it. Protection for drivers has been given more importance nowadays and many new features and changes have been introduced in the Car insurance terms and conditions. Earlier, the Car insurance used to cover the vehicle and the driver in case of any road mishappening that causes damage to the car. Now it also covers the other people in the second car, in case the accident is between two vehicles. This way it not only protects the insured car and its driver, but also the other car with which the accident has happened. Also, the sum assured for driver and passengers can be increased from the minimum amount. However, it will increase the cost of Car insurance premium annually. The more features are added to the Car insurance policy, the more the price of the annual premium will be. But, when you compare the cost after one meets an accident, the premium cost is very less and affordable. Let’s have a look at different kinds of Car insurance policies and additional features that have been introduced in recent years.

  • Normal Car insurance: This type of Car insurance is used by everyone. The individual will be paying an annual premium depending on the value of the car. In case of an accident, the service and parts cost will be given by the insurance company after their representative inspects the car and approve the payment through a Car insurance company. However, in this type of Car insurance, one has to pay 50% of value for any damaged part in the car made of plastic, and will get 100% claim from the Car insurance company is any metal part is damaged. It will also include an Rs1000-2000 file charge, that is compulsory for any type of insurance.
  • Zero Depreciation (Zero dep) Car insurance: This type of insurance is similar to a normal Car insurance but with one major difference in both the policies. In a zero dep policy, the person does not have to pay any charges for the damaged vehicle, like normal Car insurance, except the Rs1000 file charge, that is very common among all the Car insurance policies. Any damaged plastic or metal part will be fully covered by the insurance company.
  • Cashless Repairs: The best part of having Car insurance is that one does not need to pay anything upfront when you take your damaged car to the car body shop. The vehicle will be assessed by an agent from the insurance company and you will be given an estimated time as to when the vehicle will be repaired. You do not have to pay anything for the repairs, until the time you take the delivery of the car. There you will only have to pay the file charges. Without Car insurance, the amount one has to spend over the damaged vehicle could be twice, thrice or even more than the annual premium price.
  • Protection for the driver and passengers: In the case of an accident, not only the car is damaged but it also affects the passengers inside. Car insurance also covers and provides a sum assured for drivers and all the passengers in case of an injury. This is very useful in case other people are also traveling with you. You would not have to pay any extra medical expenses for their injuries as it is already covered.
  • It is Mandatory as per traffic laws: Apart from all the benefits it provides, Car insurance is also mandatory as per government motor vehicle rules. If you are not carrying Car insurance documents with you while driving, it can cause a heavy monetary penalty. Repeated offense can also get your license suspended. Therefore, it is suggested that you should renew or purchase a Car insurance policy.

Apart from this, the cost of your Car insurance will also depend on the type of features you want to add on. Some of the features include 24×7 roadside assistance where you will receive mobile service anywhere in the country in case of a car breakdown. Lost key service is also provided, in case you lose the car keys and unable to open the car door. Duplicate keys will be provided on the spot by this add on feature. You can also increase the sum assured for the driver as well as the included passengers from a few thousand to lakhs. Many other different features can increase your Car insurance coverage and premium as well. Make sure to check all the additional features and compare the price provided by different companies before buying one.


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