Why Insurance is Must for Your Car and its Benefits


Why Insurance is Must for Your Car and its Benefits

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The main use of a vehicular insurance is to provide financial protection against physical damage or bodily injury of any sort that might happen to a vehicle that results from traffic collisions and against any kind of liability arising from the car. The car insurances depend on the legal rules and regulations of each place. Car insurances also provide financial protection to car theft. So for car owners, car insurance is a must have. Be it a new car or used car, having insurance for it is simply smart.

The Various Benefits Provided by a Car Insurance Include

• Covers the legal liability for accidental death or injury to third parties arising from the use of the car

• Covers the legal liability for damage to third party property arising from the use of the car.

• Provides third party insurance cover to drive another private car not of one’s belonging

• Provides third party insurance cover for towing a trailer attached to the car

• Covers the cost of removal of the car to the nearest repairer following loss or damage and the cost of delivery of the car once the loss or damage is repaired.

• 24 hour advice is available following a claim from a third party

• Covers damage to the car as a result of fire, self – ignition, lightning or explosion or by theft or attempted theft.

• Covers accidental loss or damage to your car

• Replacement with a new car in case the car new within 12 months of purchase, is damaged by fire, theft or accident and the repair cost is more than 60% of its current price as new.

• Covers the cost of car hire expenses after a claim.

• Covers medical expenses for any insured driver or passengers as a result of injury sustained in connection with the car.

• Covers the owner in respect of death or specified injuries suffered as a result of an accident involving the car or while getting into or out of or travelling in any private car not owned by the owner.

• Covers loss of personal property in the car due to loss or damage of the car, but up to a certain limit only and for any one incident

• Covers the replacement cost of keys, locks and alarm of the car if they are stolen.

• Covers the fire brigade charges following a claim involving the car.

• Covers accidental damage to windscreens and windows on the car

• Provides roadside and doorstep breakdown assistance including towing of the car to the nearest competent repairer and getting the owner/driver home if the car cannot be repaired.

There are different types of Auto Insurance in India:

Private Car Insurance – It is the fastest growing sector as it is compulsory for all the new cars. The amount of premium to be paid in this case depends on the make and the value of the car and also the state of India where the car is registered as well as the year of manufacture.

Two Wheeler Insurance – It covers accidental insurance for the drivers of the vehicle. The amount of premium to be paid in this case depends on the current showroom price multiplied by the depreciation rate fixed by the Tariff Advisory Committee at the time of the beginning of policy period.

Commercial Vehicle Insurance – It provides cover for all the vehicles which are not used for personal purposes, like the Trucks and HMVs. The amount of premium depends on the showroom price of the vehicle at the commencement of the insurance period, the make of the vehicle and the place in India where the registration of the vehicle took place.

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