Finance

What all is Covered in a Car Insurance Plan? 

Buying a four-wheeler is a significant accomplishment. As much as you pay attention to the car type, model, features, colour, etc., you must give equal significance to car insurance. Several car owners fail to evaluate the benefits of car insurance, which lead to confusion. To avoid this, you need to know what all is covered in car insurance. Read further to know more.

The number of users of four-wheelers is growing day-by-day because the kind of comfort and freedom it offers is unmatchable. Having a personal car is better than travelling in crowded public transport systems. Apart from all of these advantages, it is your responsibility to make sure that you care and protect it from unforeseen damages by investing in the best car insurance policy.

Having third-party car insurance is mandatory in India. It provides coverage for third-party property damages, and bodily injuries. A comprehensive car insurance policy, on the other hand, offers much more comprehensive coverage. Before you plan to buy any a policy, you need to know what is all covered in a policy.

Liability cover

If your car bumps into third-party’s vehicle, causing damages to their property and bodily, then you’re liable to pay for the loss. With car insurance, you can stay worry-free because the insurer provides liability cover by providing you financial and legal assistance to overcome the situation. When you buy third-party insurance, it is a liability insurance cover that helps to offset the loss/damage cost of third-party property and expense incurred on third-party driver/person.

Death benefits

In a comprehensive car insurance policy, you receive compensation in case of your death, disabilities or physical injuries caused due to an accident. The policy will also provide support if any third-party is involved. Compensation of death and bodily injuries is also valid in case of mandatory insurance, but it is only limited to the third-party individuals.

Medical payments

If you need hospitalisation, you will not have to depend on your savings to pay the hospital bills and other expenses. You must inform the insurance company about admission, and the insurer will settle the medical bills directly with the hospital. You can claim for financial cover either through cashless or reimbursement facility, whichever is feasible to you. In short, car insurance keeps your financial worries at bay so that you and your family remain stress-free.

Property damage due to collision or calamities

Natural or human-made disasters can damage your four-wheeler beyond repair. In such a case, if you have comprehensive car insurance coverage, the insurer will compensate for the loss or damage. Note that calamities are not covered under the third-party insurance policy as it is dedicated third-party liability coverage that focuses on third-party property and person.

Personal accident cover

Car insurance also ensures the safety of passengers by providing personal accident cover. If you’re the owner of the car, you can avail this facility under the comprehensive car insurance policy.

In India, the law mandates you to have car insurance before you drive a car. You can choose to buy any of the policy that suits your requirements – be it a third-party or a comprehensive cover. But, it is advisable that you opt for an overall car insurance coverage to ensure the safety of your life, your property as well as third-party.

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