Benefits of Car insurance

5 minutes read

Are you planning to buy a car anytime soon? Here’s what you need to know-

  • Do not buy the car insurance from the dealer itself, as purchasing it from him might not give you low premium rates.
  • Do not wait too long to report a claim as it may lead to rejection of the claim.
  • Save your No claim bonus (NCB) by not approaching the car insurer for small or fender bender damages.
  • Buy Car Insurance online to get low premiums and hassle-free services.
  • In case of Car theft, the policyholder must obtain a duplicate RC book from road tax officer immediately.

Car insurance plans are to secure and protect the car that is damaged and people who get injured or die due to an accident caused by the car. There are several advantages of purchasing a car insurance.

Coverfox presents some of the advantages of car insurance which are as follows:-

Compensation for monetary losses

If your car gets damaged due to accidents, natural calamities like earthquakes, floods, etc., you need not worry about the expenses for the repair. It will be taken care of by your insurance company.

Mandate by Law

The least is a third party car insurance that is mandatory by the law. We are all aware of the traffic police checking our documents that include PUC, license and car insurance. If any of those are missing, we could be  heavily fined. Hence, it is always smart to be insured and have all the relevant documents.

Repairing and replacing of parts

The car owner is compensated based on the value of the car or its parts post accident which is understandable. However, one can always update their car insurance plan by adding covers like depreciation cover, personal accident cover, return to Invoice cover and more.

No Claim Bonus

No Claim Bonus is a discount on the renewal premium that is offered to the policyholder by the insurance company for making no claims. If the policyholder decides to get a new vehicle in the future, the NCB is transferable to the new vehicle. This reduces the premium cost depending on the accrued no claim bonus.

Compensation for Loss caused by Man-Made and Natural Calamities

Natural calamities include flooding, landslides, dust storms, earthquake, etc. These calamities are unavoidable and unstoppable. They leave a grave financial loss to vehicles. Man-Made calamities such as  accidents, thefts, etc. can ensure that cars easily get damaged.

Such damage and financial loss can be tackled by purchasing a comprehensive car insurance plan. A car insurance policy plan provides security and protection against any kind of man-made and natural calamity. It also assures security and protection against any personal accident costs, third-party damages and also legal liabilities.

Personal Accident Cover

The car insurance plans effectively have a Personal Accident cover for the owner, for which no extra premium is to be paid. Personal Accident cover plan has to be bought separately by making an additional payment for the premium for a person other than the owner. The compensation amount depends on the extent of the cover plan purchased.

It costs less when purchased online.

Buying car insurance online proves to have lower premiums. Hence, an economic policy plan can be purchased online. This is due to the fact that insurance companies have decreased operating costs when making a transaction online. They, in turn, use the saved money meant to be paid to the broker and benefit the customers. Purchasing car insurance policies online has various advantages like the renewal of the policy within minutes and payment of premiums which does not require any paperwork.

Replacement of your car if it gets stolen

Hijacking and car theft are common in various parts of the world. It gets really difficult for victims to purchase brand new cars as they are not easily affordable. For this reason, purchasing car insurance is very essential and effective. Also, if your car was purchased by a loan and if it is not insured, even after it gets stolen, you will have to continue paying off the loan to the bank.

A comprehensive car insurance policy plan will not pay for a completely new car, but it will help you to cover the pending amount that you need to clear off to the banks. This will enable you to apply for a new car loan.

Having car insurance policy plan is crucial because it covers your expense in the occurrence of car damage or injuries to other drivers. All vehicle owners must be insured against their liability to other people, as mentioned in the Motor Vehicles Act, 1988

For the best options for comparison and best deal, visit the Coverfox website. Enter the relevant details and you will be provided with a list of plans of from various companies. You can also see all the covers and customize your policy.

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