Car insurance is the immediate next purchase that needs to be made once you have finalised the car. Insurance is a regulatory requirement alongside registration and PUC certificate. The Motor Vehicles Act of 1988 makes it a mandatory norm for all car owners to have car insurance. But there isn’t just a standardcar insurance policy for everyone. Third-party and comprehensive policies are the two types of car insurance plans that are available.
A third-party policy is the one that ensures coverage only for legal liabilities that may become payable to a third person in the event of an accident or damage. Thus, it is also known as a liability-only cover. Moreover, this basic coverage makes it the bare minimum policy that all car owners must-have to abide the law. But apart from third-party policy, there is another type of insurance cover that can be bought which is a comprehensive vehicle insurance. Not only does it offer a broader coverage in comparison to liability-only policies, but also is customisable. Here are some reasons why it is advisable to purchase a comprehensive cover all throughout your car’s life –
Maximum coverage an insurance policy can offer
A liability-only policy is limited in its coverage which is restricted to third-party legal liabilities. Unlike that, a comprehensive policy offers much wider coverage. A comprehensive policy includes protection from damages that may arise to your own vehicle during such accidents. When you purchase a comprehensive car insurance online, you also have the option to select a cashless car insurance. With help of cashless facility, the entire repair costs are paid by the insurance company subject to terms as per the insurance contract.
Protection against natural perils and man-made events
Natural disasters do not come announced. With the help of a comprehensive car insurance plan, you can safeguard your car from such perils of the nature. Further, this policy also includes coverage from various man-made events including theft.
Coverage for death and disability
A comprehensive policy includes a combination of three covers – third-party cover, own-damage cover as well as personal accident cover. With personal accident coverage, the insurance policy compensates for any injury or death for the owner-driver of the vehicle. For an accident involving demise of the driver, the entire amount of compensation is paid to the nominees in the coverage.
Customisation of coverage
Comprehensive plans can be customised to fit your requirement. Depending on who is driving the car, you can increase the insurance cover to include add-ons. These add-on covers are optional features that can be bought at initial policy purchase or car insurance renewal. Say, for a new driver, having bumper to bumper insurance helps as the entire cost of repairs (including depreciation) are paid by the insurer. Further, depending where you reside like a flood-prone region, the engine protection cover can also be purchased. While you purchase these add-ons, the tend to impact your premium too. So, you can make use of a car insurance calculator to compare them and estimate the impact on your premium amount.
These are some of the benefits of buying a comprehensive insurance coverage all through your car’s life. Damages are uncertain and it is best to stay prepared with the help of a comprehensive coverage. Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms and conditions, please read sales brochure/policy wording carefully before concluding a sale.