Whenever a person desires to purchase a car, he/she spends hours researching the latest model, choosing the color and design of the car, comparing prices, etc. But he/she might forget one of the most important things i.e. buying a car insurance policy. Many people have no or little knowledge of car insurance. They used to buy cover just to fulfill legal requirements. But when they research properly, they will get to know about the various benefits of insurance policies.
If you do not meet with any kind of accident, you lose the premium amount paid by you. But insurance companies provide no claim bonus every year if the customer didn’t claim any insurance in the corresponding year. As per the Motor Vehicles Act, it is compulsory to buy an insurance policy whether you purchase a new car or a used car. It is essential to buy a comprehensive car insurance policy that provides protection and covers you, your vehicle, and third-party liability. Let’s discuss some benefits of the car insurance policy.
- Protection from natural calamities
Natural calamities are uncertain and difficult to predict like floods and earthquakes. They can cause massive destruction of life and property including your car. You are advised to purchase a car insurance policy to get protection from the damages caused by such calamities. It can provide you with financial protection.
- Protection from theft
Car theft is a common problem in today’s time. Imagine your car is parked outside your home in the street, but the next day you don’t find your car there. Think about the financial loss you will have to suffer at that time. To avoid such suffering, it is better to purchase an insurance policy that also covers the theft of your car. In such situations, the company provides IDV (Insured declared value) of the vehicle.
- A large number of garages
If your car gets damaged in an accident, the insurance company will pay the repair expenses. Generally, insurance companies collaborate with various garages across the cities. You can get your car repaired from any of these garages that come under the network of your insurance company. Your bill will directly be settled by the company. So whenever you purchase an insurance policy for your car, always check the network of garages of the company in your locality.
- Coverage against third-party liabilities
Purchasing third-party insurance means that if your car causes damages to other vehicles or persons, the insurer has to pay the compensation on your behalf. The insurer will not provide against third-party liabilities but also compensate you for the damages to your car.
- Protection against accidental damages
A car accident can be a difficult situation for anyone. It does not give mental stress but financial loss too. Insurance policy can provide relief to some extent by compensating for the damages that occurred to the car. In such situations, small relief can also play a big role. In the event death of the owner, an insurance claim will be provided to other survivors.
- Flexibility to choose add-on covers
Purchasing add-on covers can extend the scope of your car insurance policy. They are also known as riders, but you can only purchase them only if you have purchased a comprehensive insurance policy. There are various kinds of ads available, you can choose the one that suits your preferences.
Having a car insurance policy can provide you peace of mind. You don’t have to worry about the financial losses of your car. Buying an insurance policy is a hassle-free process. You will be provided with effective customer support services. There are numerous benefits to purchasing car insurance. You can compare different car insurance policies, and choose the one that suits your plan and has an affordable premium. Purchasing orange card insurance is mandatory in some countries which is a kind of international insurance.