While selecting from the best models, colours, designs, and features available in the market, we don’t want to miss even a little detail about the vehicle we choose. Buying a car is a huge one-time investment for many. Some people invest all their savings while some buy it as an additional asset. Whatever the reason may be, a car needs proper maintenance, should be driven safely and should be protected from any unforeseen circumstances.
Most car buyers know way too little regarding car insurance. Vehicle insurance or car insurance, to be specific, is the signed attainment of policies that ensures to protect your car from any unforeseen incident. With the increasing number of accidents, it has become mandatory to get your cars insured right at the time of their purchase. A complete guide to car insurance is mentioned below.
What is Car Insurance?
Car insurance, auto vehicle insurance, or motor insurance is made to protect your vehicle from any unforeseen accident. It is a set of policies that are bought by paying a yearly premium. Car insurance is mandatory on the purchase of a new or a used car. Like seat belts are worn to protect ourselves from unpredictable injuries, similarly, car insurance acts as a protection to protect your car against the losses induced due to unavoidable accidents.
The premium amount depends upon several factors like the value of the insured vehicle, it’s classification, type of coverage, and voluntary excess. Numerous insurance companies offer car insurance. To select the best policies and prices, you must be aware of the need, coverage and advantages of car insurance.
What Does Car Insurance Cover?
A car insurance policy covers several factors that should be considered while taking a car insurance. These factors are often referred to as the perks of having car insurance.
- Bodily injury liability: This liability coverage covers costs associated with the injuries caused to you or any other driver while driving your car. Under this, the insurance company is liable to pay all your medical bills and expenses in case of any accidents taking place.
- Property damage liability: It covers the cost of repairing damaged property at the time of the accident. It reimburses properties like a fence, pole or building that gets damaged by the driver operating your car.
- Personal injury protection: It covers all the medical expenses that occur after an accident either it is related to you or your passengers. It provides reimbursement for all the medical expenses and also covers the lost wages and other expenses.
- Uninsured motorist coverage: At the time of the accident, if your car is being driven by another driver with no car insurance, motorist coverage covers the cost of all your medical expenses.
- Comprehensive coverage: In case you’re not driving the car at the time of accident, comprehensive coverage covers all the damages caused to your car in such cases.
- Collision coverage: It covers all the expenses of your car right from repairing to maintenance after an accident takes place regardless of who the driver was.
Advantages of Getting a Car Insurance:
- Coverage against accident: A car insurance provides you with complete coverage against the damage caused due to unforeseen accidents. You can save a lot of money by claiming the expenses of the repairs.
- Legal protection: Upon checking, Car drivers with no car insurance have to pay penalties. The laws have stated it mandatory to have car insurance. Failure in getting your insurance done, is a violation of traffic laws. Therefore, car insurance can protect you from any legal issues.
- Coverage against natural disaster: Insurance ensures to cover all the expenses caused due to natural calamities. For example, if a tree falls on your car after a huge thunderstorm or an earthquake, or a severe flood damages the motor parts of your vehicle, the expenses to recover the damages will be paid by the insurance company.
- No claim bonus: In case you’ve not stated any claim during the time period of your policy, you are entitled to get the No Claim Bonus. You can avail this while renewing the policy.
- Benefits in case of death: In case an accident results in the death of the driver, the survivors or the family members get a compensation amount according to the terms of the third party insurance.
Car insurance facilitates complete coverage of expenses against any unforeseen circumstances. Hence, it is very important to get your cars insured at the time of its purchase. It helps you to cut on several expenses caused due to accidents and gives an assurance of protection. You can mitigate the cost of repairs and medicinal bills after any foreseen circumstances occur. The No Claim Bonus facility helps you to retain a part of your insurance amount. So it is always advisable to not claim small repair amounts.