A friend of mine and I were talking on the way out of a shopping mall when some confusion led to an accident in the parking lot. The doors of the other car and front bumper of my friend’s car were badly damaged. The first thing that I asked my friend was, “Do you have a car insurance?” To which he replied yes.
There were only two possible scenarios for the accident, either my friend had a car insurance or he did not. In the event that he did not have a car insurance, he would have ended up paying for the damages to the other car and repair expenses for his car as well. There are some other benefits of having a car insurance also, that we will cover in some time.
A car insurance primarily serves as your back up plan, should any unexpected event take place. A car insurance policy is available either as a third party liability or as a comprehensive policy. You can know all details when you log onto Coverfox.com. Here are some details about these two policies.
Third Party Liability
To start with, a third party liability is much more affordable when compared with a comprehensive insurance. It is the minimum requirement to drive your car on the road as per the Motor Vehicles Act of 1988. If an accident involves injury or damage to other individuals or properties, the policy will pay for the same. The IRDAI usually sets a standard premium rate for third party liability policies.
As the name suggests, this policy covers a lot more grounds. In fact, a comprehensive plan consists of a third party liability and adds more features. For starters, you can claim for your own damages. It covers lot more other things such as damages arising from natural calamities such as landslides, cyclone, earthquake etc. The policy also has your back in the event of theft, burglary, vandalism etc.
Why is Car Insurance a Necessity?
Now that we know there are different categories of a car insurance, having the right one can save the day for you. A good life insurance, preferably a comprehensive policy, offers a lot more than mere protection against accidents. Here are some of the reasons why it is necessary to buy a car insurance policy.
- Less Liability
Whether you buy a comprehensive policy or a third party liability cover, you get access to the later. It, in turn, reduces legal consequences and liability on you. The third party component will take care of most of the expenses arising out of such instances.
- Own Damages
When a person meets with an accident, there are high chances that their own cars will be at the receiving end of some damages. A comprehensive plan ensures that you can claim for repairs pertaining to own damages as well.
- Accident Cover
Most of the comprehensive policies have personal accident cover built into the plan. Should anything happen to the policy holder and they lose their life, the nominees of the policy will receive the amount. This payout would ensure that your loved ones can continue with their life for a few days without any financial stress.
- Medical Expenses
Some of the comprehensive car insurance policies offer medical assistance as well. Should the policy holder meet with an accident, the policy will look after the medical expenses arising out of it, thereby, reducing some financial burden from your shoulders.
- Buy Online
For prospective buyers who are comfortable shopping online, buying a car insurance online is a great alternative. You can not only compare the different features and benefits that insurers have on offer but also save a handsome amount on the premiums.
How Can Car Insurance protect you when you need it the Most
A car insurance policy can protect you only to the extent of the type of policy that you have purchased. While a third party policy might be enough if you rarely take your car out, a comprehensive policy is better without any doubts.
Taking my friend’s situation for an example, his comprehensive policy ensured that he could claim for his own damages and the third party liability covered for the damages to the other car. If there were to be some burglary from your car or theft, a comprehensive policy would take care of that as well.
Similarly, if there are some damages to your car due to some natural calamities, it can be disheartening. Primarily because you do not have any control over the same. But having a comprehensive car insurance policy would have taken care of that scenario as well. Even though a comprehensive plan costs a little bit more, it does offer a lot more for that amount.