Knowledge Centre

Why It Is Important For You To Insure Your New Car?

Buying a car is a dream come true for many. You spend a good chunk of your wealth to buy a car that helps you travel places and also proves to be a boon in case of an emergency. When you buy a car, it is significant that you insure it with a car insurance policy that provides you compensation in case of damages caused to third party or property as well as your car. Not just this, a car insurance policy also offers you a host of other benefits that you should know about. Read on to know the importance of insuring your car with a car policy.

It is mandatory: The very important reason you should be buying a third party insurance policy is because it is mandatory to do so as per the Motor Vehicles Act, 1988. A third party insurance insurers you against all your liabilities arising out of damages caused to third person or property. Driving without a valid third party insurance policy is illegal in India and can lead to cancellation of your driving license or a payment of a hefty penalty.

Your car is covered against man-made and natural calamities: Buying a comprehensive car insurance policy insures your car against damages caused to your car due to man-made and natural calamities such as theft, floods, terrorist activity, war, etc. Since such acts can lead to total loss of the vehicle or even require high repair costs, the insurance company takes the burden off your shoulder by providing compensation for coverage of such instances.

Coverage for personal accident: In case you meet with an accident when driving the car, then the insurer would cover costs of the hospitalization expenses in case of an injury and death. However, coverage is not provided in case you are found to be driving under the influence of drugs or alcohol or are driving without a valid driving license.

Protection from financial liability: Buying a comprehensive car insurance policy is always a wise thing to do soas it protects you against financial liabilities arising out of damages caused to your car as well as injury, damages or death caused to third person or property. Thus, a car insurance policy offers you peace of mind by taking off the financial burden from your shoulders and offering coverage at all times. Additionally, car insurance cover also provides coverage for vehicle repair or replacement costs.

Add-ons: You can enhance the coverage of your comprehensive car insurance policy by opting for add-ons such as no claim bonus protection, zero depreciation, engine and gear box protection and others. You can opt for these add-ons by paying a little extra premium with your comprehensive car policy.

With the above benefits, it is imperative that you insure your car with a car insurance policy that provides good coverage at an affordable cost. Though the premium for third party insurance cover is decided by the IRDA, the premium for comprehensive cover varies depending on the insurance company and the coverage.

Disclaimer:I The above information is for illustrative purpose only. For more details, please refer to policy wordings and prospectus before concluding the sales.


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