A car insurance policy is a type of vehicle insurance that offers comprehensive protection to the insured car in case of damages due to natural and man-made calamities. It prevents the car owner from incurring any monetary losses resulting from unpredictable incidents including accidents.damages suffered on the insured car. Besides, you can also get personal accident cover for the owner-driver to stay protected from any car accidental injuries.
In India, it is compulsory for all cars plying on roads to have a valid third-party liability cover as per the Motor Vehicles Act, 1988. Moreover, newly purchased cars should have mandatory third-party liability cover for 3 years with at least 1 year of OD. Car insurance for old cars is available for one year only and thus, have to be renewed annually.
It is mandatory to buy four wheeler insurance in India irrespective of the vehicle type, i.e. personal or commercial vehicle. The insurers compensate for the loss or damage caused to the insured vehicle and a third-party from the insured four-wheeler. Here are some of the reasons to buy new car insurance policy in India in addition to it being a mandatory requirement as per the Motor Vehicle’s Act:
- It pays for the car damages as a result of collision, accident, death or natural calamities, which otherwise would need to be paid by the insured
- It pays for hospitalization expenses in case of an accident
- It reduces the financial and legal damages that can arise from a third-party laibility or damage
- With rider benefits like roadside assistance, zero depreciation the expenses are further reduced
Moreover, the premium amount of your 4 wheeler insurance is decided based on the Insured
Declared Value or IDV of the vehicle. If you increase the IDV, the premium rises and if you lower it,
the premium reduces.
It is important for any policyholder to compare various car insurance plans options before going