Benefits of Car Insurance
Car Insurance

Benefits of Car Insurance

Benefits of Car Insurance

Owning a car is a matter of pride. A four-wheeler is an asset that needs to be protected. Hence, the need for car insurance arises. A car insurance policy is essentially a contract signed between you and the insurance company. Under this contract, the insurer offers you cover against any financial loss arising due to damage or theft of your insured vehicle. In exchange, you have to pay a small amount of money as premium at fixed intervals of time (usually every year). If you are still not convinced about buying a motor insurance policy, then take a look at some of the key benefits of car insurance to understand its need better:

Legal compliance:

Buying a car insurance policy is necessary as third-party cover is mandatory for all vehicles in India. According to the terms of the Motor Vehicles Act 1988, driving a car without third-party insurance is a punishable offence in the country and can lead to heavy penalties. Hence, buying car insurance ensures legal compliance, which is one of the biggest advantages of motor insurance.

Saves money:

A car insurance policy can cover most of the repair expenses on your vehicle and can reduce those big garage bills in the aftermath of a mishap, thereby helping you save a lot of money. This is the primary reason why insurance is bought and is, without question, the biggest benefit of a car insurance policy.

Third-party liabilities:

Third-party insurance protects you against any third-party liabilities in case of an accident involving your car. This means that if your car hits another vehicle on the road and damages it, your third-party liability cover will help you compensate the owner of the other vehicle to the extent of damages suffered by him/her.

Minimises liability arising due to loss of lives:

Not just property or car damage, third-party car insurance also pays for the other person's injury or death in case of an accident. It protects you from legal repercussions, which is one of the major advantages of car insurance.

Reimbursement in case of theft:

A stolen vehicle can burn a deep hole in your pocket as well in your heart. With Total Loss Car Insurance, if your car is termed as a total loss (after theft or an accident), then the insurance company pays you an amount equal to the current market value of your vehicle.

Cashless claims:

One of the key benefits of motor insurance is the cashless claims facility that offers you the benefit of getting your vehicles repaired without paying money at any of the network garages of the insurer. The reimbursement of expenses is directly handled between the insurance provider and its network garages. You just drop your vehicle there after the mishap, do the necessary paperwork and drive your car out when it is ready without paying any bills.

Roadside assistance:

A car insurance policy can come with add-on roadside assistance cover that can prove to be extremely useful while handling vehicle breakdowns in the middle of the road, especially at odd times. With a Roadside Assistance cover for your car, you can simply contact your insurer, inform it about the breakdown and your location. The rest will be handled by the insurer. It will send you timely help by coordinating with its network garages and mechanics. You just need to wait in your vehicle and not worry about managing the situation.

Disclaimer: The above information is indicative in nature. For more details on the risk factor, terms and conditions, please refer to the Sales Brochure and Policy Wordings carefully before concluding a sale.

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