What Is Car Insurance? 5 Ways It Protects Your Vehicle

by Kanika Shelatkar Insurance Consultant

car

Just like you take life insurance to protect your family and yourself, similarly, your four-wheeler requires protection as well from unforeseen risks. The car insurance acts as a shield for your four-wheeler that helps it against losses incurred by unavoidable instances such as theft, damages caused by accident, and subsequent obligations. Who is covered under car insurance? You, your vehicle, and the third-party (other people).

With many insurance companies offering the best deal in the market, it is difficult to make a choice. Figuring out the right insurance policy that fits your requirement and budget, requires time and effort. Thankfully some third-party websites allow you to make an informed decision and enables you to purchase car insurance online.

Why is there a need for car insurance?

All the vehicles used in public spaces must hold car insurance. The Motor Vehicles Act of India has made it compulsory.
When you take an insurance plan, third-party liability policy is also essential. You also have the option to go for the comprehensive scheme.
One out of six car accidents takes place in India, as reported in the recent survey. A comprehensive policy ensures the costs incurred through car accidents get covered. You get insured as well under this policy.
If your four-wheeler collides with another, the comprehensive plan covers the expenses in exchange of nominal premiums.
Car insurance provides a sense of assurance and peace as you can skim through the traffic and drive with ease on highways, without worrying about car accidents.
Several car insurance policies also offer coverage for injuries you or your partner sustained during an accident. In case the policy does not provide the same, you can purchase it online as an add-on cover. This will boost your health insurance plan

How does car insurance protect your car?

Owning a car is a costly affair. Their maintenance and repairing expenses go heavy on your pocket, especially if your vehicle meets with an accident. Your vehicle could crash into a wall, colliding with another car, etc. These incidents incur massive costs. So, insurance takes care of them
Third-party liability plan is compulsory in India. How does it work? Say you crashed your four-wheeler into a third-party property, the policy handles the legal repercussions as well as covers the damages. Similarly, if you injure a person, the insurance handles the legal and financial aspects of the same. So, your liability reduces considerably
Some accidents are mild. Some can cause severe damage that requires hospitalization. Given the rate at which hospitalization charges are increasing, a car insurance policy does not burn a hole in your pocket
The worst-case scenario of an accident is the death of the car owner. If you are the only breadwinner in the house, it gets difficult for your spouse and children. The insurance manages the expenses of your family, especially the funeral costs
Getting car insurance online is cheap since the premiums are lower. This is because the operating costs are lower for insurance when the transactions are done online.

Even the car insurance renewal process is simple, hassle-free, and cost-effective online.