Is It Necessary To Buy A Car Insurance Policy In India?

A vehicle is one of the most previous assets for any individual, next only to their residential properties and other valuable assets. As such, a proper insurance policy to financially cover against mishaps is vital. Before you avail a car insurance policy and whether you should, it is firstly important to have a complete idea about such policies.

  1. The cost – There is a financial liability associated with purchasing a new car, other than just its price tag. Thus, you should carefully plan out your budget, and the means in which you are willing to make this purchase. Purchasing a vehicle is either via personal savings or by availing a car loan. You should also consider the cost of new car insurance payable.
  2. Type of car – The main feature that distinguishes between various vehicles is the kind of fuel it runs on. Generally, cars running on petrol are cheaper than the ones which use diesel. However, the market price of petrol is higher than diesel. The decision should be based on the fuel costs you are bound to incur daily. A person using his/her car for daily commute has a higher portion of her income spent on fuel than a person who uses his/her car during weekends.

While purchasing a new car, a car insurance scheme is vital as it protects your financial interests in case of an unlikely event. In case of an accident, not only is your life is at risk, but also the lives of other people on the road – either riding other vehicles or walking. Having your car insured is obligatory in India under the Motor Vehicle Act of 1988. It protects the interests of people on the road and gives them a sense of security.

There are two types of car insurance available –

Third-party liability

This car insurance policy only safeguards the interests of the affected individuals in case of an accident. In case the accident is caused due to your fault, note that your vehicle is not covered under the policy.

Comprehensive plan

This is the highest insurance package you can opt for. It guarantees all-round coverage to your car, from both human-made as well as natural disasters. In case of damage limited to only some parts of your vehicle, you can still claim the insurance benefits. It covers damages caused to the vehicle during storms, theft, and accidents as well.

You are also entitled to a no-claims bonus at the end of your insurance premium tenor or per annum. This feature offers a discount on the premium amount payable in case of insurance of renewal.

It is one of the most common types of insurance availed in the market due to the increasing use of cars on Indian roads, as well as a growing number of accidents happening in the country. More than 1.5 lakh people were involved in a roadside accident of some kind. A car insurance policy can at least financially cover the damages to the vehicle.

Documents required to buy car insurance online –

  • KYC identification documents
  • Vehicle registration documents for proof of ownership
  • Details of the automobile itself

There are various financial institutions providing these policies at attractive rates and multi-pronged benefits.

Features or terms you should look for

  • Reputation of the insurer.
  • Points of coverage provided.
  • Premium charges to be paid annually.
  • Discounts and added benefits offered by the company should also be considered.

A car insurance scheme is a necessary pre-emptive expense to save on large scale expenses later on. Other than just accidents, it can help you with financial assistance in case of small dents or repairs as well albeit only if they are caused by an accident under stimuli from a third party. Comparing the features of the various car insurance plans provided by numerous financial institutions would allow you to buy the best car insurance most suitable for your needs. Refer to insurers such as Bajaj Finserv who offer comprehensive motor insurance policy that comes with a wider coverage.