Pre-Covid-19' price index shows uncertainty in car insurance costs ...

A car is no longer a luxury in India. It is the best way to save time and money in our fast-paced lives and the constant struggle to accomplish more within the available time. However, buying, maintaining, and running a car can be cost-efficient if you make the right decisions at the right time. While buying the car, it is important to look at the options available to you and compare quotes before buying, keeping your anticipated use of the vehicle in mind. It is also important to choose the right make and model of the car, along with the required accessories. Regular maintenance of the car ensures that it stays healthy and performs optimally increasing its on-road life. Also, driving carefully can keep your car away from mishaps. However, there is one more important element that your car needs – a car insurance policy. Today, we will talk about how this policy can safeguard you from future uncertainties.

A car is both a liability and an asset. While it can make your life easier by allowing you the freedom of commuting at your own pace and time without depending on public transport, an accident or a mishap or any natural/man-made disasters damaging your car can burn a hole in your pocket. Here is how car insurance protects you from future uncertainties:

Road Accidents

According to a report by the Ministry of Road Transport and Highways (MORTH), India has the highest number of deaths due to road accidents in the world. Also, around 55% of road accidents occur on national or state highways. While you can ensure that you drive safely and follow road rules thoroughly, accidents are unintentional and unexpected and can happen even to the safest drivers. In the unfortunate event of an accident, you might have to deal with a huge financial liability arising from bodily injury or death of one or more people involved in the accident (your car or the third-party car) and/or damages to the vehicles (your car or the third-party car). 

A comprehensive car insurance policy ensures that these costs are reimbursed to you to the extent of the coverage. Hence, while you take all measures to keep away from a collision or an accident, a car insurance policy provides a financial security net to manage costs after such incidents.

Natural Disasters

Natural disasters are beyond anyone’s control. An earthquake, flood, cyclone, landslide, etc. in the area where you live can cause severe damage to your beloved car. Repairing the vehicle and getting back on the road can be a huge financial burden. Insurers offer financial protection against any damage or loss due to such natural calamities.

Man-made Disasters

One of the biggest man-made threats to your car is burglary or theft. If your car gets stolen, then it is a sudden setback to you. Also, over the last couple of decades, we have seen incidents like riots, terrorist activities, strikes, etc. causing collateral damage to parked vehicles too. A comprehensive insurance policy ensures that you are covered against financial losses arising out of any such man-made disasters.

You NEED a comprehensive car insurance policy

The Motor Vehicles Act, 1988 makes it mandatory for all car owners to have a third-party liability cover and a personal accident cover. Since the mandatory requirement does not include damages to the policyholder’s car, most people opt for the third-party liability cover only due to lower premium rates. However, accidents and natural/man-made disasters can happen at any time. Also, damages to the car can be costly to repair. 

Hence, buying a comprehensive car insurance policy based on the risks that your car is exposed to can safeguard you from such uncertainties. For example, if you are living in an area that is prone to be hit by cyclones every year, then such a policy can help you save money by reimbursing the cost of repairs if the cyclone causes any damage to your car. Or, if you live near a mountainous region where landslides during monsoon are common, then you need this protection too. While practising safe driving habits can keep road accidents away, sometimes accidents ‘happen’. Hence, you need a plan to ensure that you can meet the costs of any damage to the vehicles or people involved in the accident. 

Popular car insurers like Tata AIG offera seamless option to buy policies and file for claims online.However, ensure that you research well, and compare plans before buying. Also, insurers offer a range of add-ons to help you customize the policy according to your needs. Use the online car insurance calculator to find the premium that you will have to pay for the policy that suits your requirements completely.

Summing Up

Accidents are uncertain and so are natural or man-made disasters. Hence, it is prudent to keep yourself prepared for such incidents. Buying a car insurance policy ensures that you are financially protected from damages arising out of such uncertain events.

How can Car Insurance Secure You from Future Uncertainties?