Why should you take a car insurance?


By Ritik Bhagat

Most people take Car Insurance only because of legal imperatives. But, in reality it is helpful for you in many kinds of difficulties. It is beneficial for you in all three ways, financially, mentally and physically. In this article, we will know why you should take Car Insurance? How do you live more comfortably than this.

Why should you take a car insurance?

You or your vehicle may be an accident at any time due to heavy traffic, arbitrary use of traffic laws, and inadequate awareness of traffic rules among drivers. In such situations, car insurance acts as a protective cover for you. There are following arguments in favor of availing car insurance-

Legally compulsory auto insurance

According to the Motor Vehicles Act 1988, it is mandatory to get Motor Insurance to run on Indian roads. If your vehicle is caught without insurance, you can be fined. Your driving license can also be canceled. However, only third party insurance (TPL) is mandatory in auto insurance. It provides insurance protection against damage to another person, vehicle or property from your vehicle.

In case of Third Party Insurance, the insurance company also pays for the treatment of the other person. On his death, the insurance company pays compensation to his family according to his financial status.

If the case reaches the court, then the insurance company is helpful for you. The insurance company also pays for filing the case, lawyer’s expenses, etc.

Repair compensation for damage to the car

The car itself is expensive. Its accessories and parts are also not very cheap. They can sometimes be harmed in an accident. Or the loss can also be caused by someone’s negligence or mistake. For example, if your car is hit by another vehicle, or your car collides with the divider to save a pedestrian, or a cricket match ball breaks your glass. If you have got comprehensive car insurance done, then the insurance company takes care of the cost of car repairing and you live in peace.

Apart from the main policy of Car Insurance, there are also insurance policies for certain purposes. These are called Add on Covers or Riders. Such as personal accident, roadside assistance, zero depreciation, engine cover, etc. With their help, you can strengthen your insurance coverage.

Damage when car is stolen, or destroyed

If your car is stolen or destroyed, or if it is completely destroyed in an accident, then the insurance company gives you compensation for taking another car. In the event of natural disasters, weather and fire, you get such compensation even if the vehicle is destroyed.

This compensation is decided according to the market value of your old car at that time. This market price is the IDV (Insured Declared Value) of your car. IDV is the declared price that the insurance company pays you if the car is stolen, or completely destroyed. As the car gets older, it decreases year after year.

Compensation up to 15 lakhs on disability or death

If the car owner dies in the accident or becomes a permanent disability, then the insurance company also pays compensation to him / her family. In India, it is also mandatory for the vehicle owner-cum-driver (owner-driver) to have a personal accident insurance of minimum Rs 15 lakh. You can also take an insurance policy of more than this for your convenience.

Note: In relation to a car insurance policy, the owner-driver is considered to be the person who owns the insured vehicle and has a valid driving license. While taking a car insurance policy, the name of the owner-driver is already entered in it.

Treatment of injured driver or passengers

With Car Insurance, there are some add on policies that provide insurance cover to your car driver (salaried person) or passengers. For example, you can take ‘Accident cover for paid driver’. The insurance company will then pay compensation for injuries, disabilities or deaths in an accident. Similarly, there is an accident cover for car passengers for the passengers in the car. On taking it, the insurance company compensates the passengers for injuries, disabilities or death.

Re-sale value of Insured Car is also high

If you have taken a comprehensive insurance policy, then it is repaired on any defect. If you have taken a zero-depreciation policy, then you get better compensation. The insurance company fixes your car’s IDV. All this indicates that you have kept the car in good condition and it will be in good condition. When you want to sell your car (Resale), then its price will also be good.

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