The Importance of a Car Insurance Policy

As the number of cars available in the Indian market are increasing every year, more and more people are opting to buy them. It is no more a difficult process to buy a car and with more earning members in the family and thus, a higher disposable income many households have more than two cars. As more and more cars are there on the road, safety has become a big question mark. People do not follow traffic rules, and neither are they properly enforced by the police and other authorities; causing many accidents. The law and order is a problem also in many areas leading to a risingnumber of vehicle thefts. Seeing this situation, owning a car insurance policy has become as important asowning a car itself.

Car Insurance is More Cost Effective

Third party liability insurance has been made mandatory by the law in India, but it is always advisable to own a comprehensive insurance policy. if you analyse all aspects of a car insurance policy versus the amount that would need to be spent in case of any damage to the car, owning a car insurance is more cost effective. Some of the reasons for the same are:

• Insurance pays for the loss and damages: The repairs for any damage to the cars today has become expensive as the car parts come at a high price. The car can be damaged due to the fault of any person and not necessarily the owner. In such times, the policy will take care of the cost of repairs and not causing any financial stress.
• Decreases Liability: If the car owner causes an accident which causes injury to someone or damages their property, it becomes his liability and he must pay for the damages and also for the legal costs. Owing to this reason, third party liability insurance is mandatory in India and this reduces any liability that may arise in times of accident.
• Pays for Hospitalization: In the case of an accident which causes a serious injuryto the owner, there is a need for hospitalisation. You can get the insurance company to pay for the expenses incurred and not spend out of your own pocket.
• Life Cover: A car insurance online policy can help the family of the owner in case of an unfortunate death caused in an accident. The amount received from the insurance company can help the family cope up with the financial stress the death of a member can cause.

Where and When

A car insurance policy is very important and thus, it is for a reason that it has been made compulsory by the law. A third-party liability only covers a loss which is caused to a third party. However, it does not cover any loss or damage that is caused to the car or the owner due to an accident, natural calamity or theft. Such losses can cause a lot of financial stress mainly because such expenses are rarely budgeted for. Thus, it makes sense to buy a comprehensive policy which covers losses causes due to several reasons.

Buying an insurance policy for your car is thus, important and advisable. In the present times buying a policy is not difficult. There are many options available. Firstly, the policy can be bought in the traditional way of contacting the insurance company or the agents. This is convenient but can also pose problems if the agent does not advise properly.

With many insurance companies, there are several options available and thus, an adequate comparison should be done to choose the best possible policy. There are many online aggregators which after taking the basic details of the car provide a comparison of various policies available. In this way, policies from different companies can be compared in terms of premium, coverage, add on covers and other details. Comparing policy online is easy and it is equally simple to buy the policy online. There is not much paper work involved and some basic information needs to be given along with uploading some documents. The payment can also be done online and once the policy is accepted, the insurance company sends the policy on mail.

Buying car insurance is important and cost effective and is something that should not be ignored by anyone. One only realises its importance when there is a need and then if you do not have one, it gets too late.