Car insurance is an agreement that exists between the insurance company and the car owner, where the car owner pays a premium and the insurance company protects the owner against financial loss caused due to damage to insurance holder’s vehicle.
The basic formula of insurance states that premium is equal to own damage minus no claim bonus to which the liability premium is added. In India, this is fixed by the Insurance Regulatory and Development Authority.
Most people often ponder over the idea “Do we really need car insurance?” when they have been paying regular premiums without making any claims. They end up claiming car insurance as a financial burden, and choose to avoid it. BUT, can one guarantee that, they will never encounter an unfortunate incident? Even if one claims to be a safe rider, what is the assurance that everyone else is also a safe rider?
Car insurance not only pays for damages, but also reduces one’s legal and financial liabilities. It also pays for the car owner’s treatment. So, the pros of having insurance outweigh the cons, massively.
Currently the main types of car insurance available in India are:
1) Third party car insurance policy which is mandatory in India.
2) The standalone Own Damage cover, which is introduced recently by the IRDAI. It protects the insured vehicle against theft, fire etc.
3) Comprehensive car insurance which covers both third party and personal damages
2) Comprehensive car insurance which covers both third party and personal damages
SO, how to obtain car insurance without any hassle?
Getting insured is very easy now, as one can obtain it by performing few simple steps and is done online. Firstly,decide the type of policy you want by comparing the policies online. You may choose from one of the two types that are available, that is either third party or comprehensive policy.A comprehensive policy allows you to choose the various add-ons such as engine protection cover, roadside assistance cover, . Now you have to select a reputed insurer for which you may focus on the market reputation, claim filling process, the benefits etc. Now after you have made your policy, check the policy document, make the payment and obtain a copy of your policy.
Hence, having car insurance reduces financial uncertainty and also makes loss manageable, and reduces liability.