The Importance of Having Car Insurance in India

by kumar rahul Best Insurance Deals

Car insurance, also known as four-wheeler insurance, is a contract between an insurance provider and a car owner under which the insurance provider covers the policyholder for financial losses suffered by his or her vehicle as a result of unpredictable incidents. There are three types of car insurance policies, depending on the coverage: third-party car insurance, standalone own-damage car insurance, and comprehensive car insurance.

Car insurance provides a slew of advantages to policyholders. The following are the key advantages:

· Protection Against Third-Party Liabilities

Third-party damages such as personal injury, temporary/permanent disability, death, and property damage are all covered by acar insurance policy. Though third-party property damage liability is capped at Rs. 7.5 lakh, there is no limitation on compensation for third-party bodily harm, injury, or death.

· Helps You Stay Legally Compliant

A car insurance policy keeps you legally compliant, as every car owner in India is expected to have at least a third-party car insurance policy, according to the Indian Motor Tariff. The lack of which is punishable by a fine of Rs. 2,000 and/or a three-month jail sentence.

· Protection Against Own-Damages

A car insurance policy protects you from the financial consequences of your car's own-damage expenses. Road accidents, natural disasters, man-made disasters, fire, explosions, arson, and other perils are protected by standalone own-damage and comprehensive auto insurance policies.

· Coverage Against Theft

An auto insurance policy also covers you in the event that your vehicle is stolen. In this case, the insurance provider will give you the Insured Declared Value (IDV), which is the market value of your car.

· Personal Accident Cover

With a car insurance policy, you can also get a personal accident cover of up to Rs. 15 Lakh which offers coverage in case of death, bodily injuries as well as disability of the policyholder in a car accident.