Advancement has now become a face in every sector along with Banks. Nowadays, Banks are allowing loans to almost every individual. which has made people enjoy luxury in the form of having their desire car.
But with all good news there comes bad news too as your desire car can fall into quarry anytime through accident, damage, theft. In India, the car accident fatality is 1.51 lakh fatalities to car accident 1214 car crashes occur every day in India. So, according to the Motor Vehicles Act of 1988, it is mandatory to have Car insurance.
What is Car Insurance?
It is to primarily protect the owner against financial and legal liabilities which may take place in case the vehicle is involved in some accident and it has caused some bodily injures.
- Provides security to your car Protects your car against fire
- Protects your car against theft and vandalism
- Provides compensation in case of death or disability
- Protects against legal and financial obstacles
Liability– In this car insurance, you have to be an insured driver. It is to protect the driver or the owner of the car even if you are not responsible for the car accident. Liability coverage includes- damages, medical expenses, lost wages.
Collision- In this car insurance, it provides coverage for repairs in case your car has met through traffic accident it doesn’t matter who is in the fault. It also provides safeguard against a collision with trees, building. The basic advantage that it provides is the “replacement provision”. Which means if your car has become dismantle it is possible that you can get a replacement of your car with the same market value or get a down payment for another car you wish to buy.
Comprehensive- In this car insurance, replacement of vehicle in theft or natural disasters is covered.
What Car Insurance doesn’t cover?
- An accident that occurs while the owner of the car is under the influence of Alcohol and Drugs
- During accident when your car is driven by someone else or vice-versa
- Damage of the car is done by the driver who has no driving license
- It doesn’t cover against any failure in the mechanical and electrical segment
- Damage that occurs due to war, nuclear risk.
Top Companies for Car Insurance-
- TATA AIG General Insurance Company
- ICICI Lombard General Insurance Company
- Royal Sundaram General Insurance Company
- Wisdom Policy
- Reliance General Insurance Company Limited
It is important that you have your car insurance because a single life can cost the life of an entire family.