What is the need of a car insurance policy? Is it really worth? Read on to learn how car insurance saves money in the long run.
Who needs a car insurance policy? New car owners, learners or every new and old car owners need to get their cars insured? According to the law, all commercial and private vehicles, including two and four wheelers running on the roads must have a valid insurance policy that must be renewed annually. The insurance policy can either be comprehensive or third-party, as per the vehicle owner’s choice.
However, many experienced car drivers and old car owners assume that they don’t need to buy car insurance online or through offline mode. They believe that now they have got enough of driving experience, may be for more than a decade now. And hence, all their money is wasted in the form of insurance premiums. But one should remember that a few situations are out of our reach and control. And overlooking the need of a car insurance policy may turn haunting in the future.
Learning from others – The Need of Car Insurance Policy
Let’s have a close look with what Mr. Ravi had experienced recently!
Mr. Ravi had to pay Rs.15, 000 annually for his car insurance policy. He loved his car more than anything, which he bought 3 years back after many years of savings and hard work. However, after three years, Mr. Ravi felt that nothing is going to be wrong now as he is now an experienced driver, who can easily drive around all sorts of roads. And hence, he decided not to renew his car insurance policy.
Six months later, a speeding truck rammed his car on a traffic signal. Thankfully, Mr. Ravi was safe, but his hard-earned car was badly damaged and needed major repairs. The complete repair costs ran up to Rs. 95,000, which was paid by Mr. Ravi himself. This is when Mr. Ravi realized his mistake of avoiding the need of a car insurance policy.
What is a car insurance policy?
A car insurance policy is nothing but a protection for your car. As per the Indian laws, vehicle insurance is a compulsion. This insurance policy can protect you, your car and the third-party involved in case of an accident. So if your car meets an accident, and unluckily you or someone else on the road is hurt, the car insurance policy will cover the life and medical expenses of both. Not only this, but it would also cover your car for the damage repair costs.
How it works?
It is quite simple. All you need to do is pay a small premium amount on an annual basis to keep the policy active and valid. And in the case of an accident, the insurance company will be liable to pay the claim amount.
What is Insured Declared Value (IDV)?
The insured declared value is the maximum sum assured by the insurance company, which is provided to the car owner in case of theft or loss. The same can also be used for car repairs in case of an accident. Remember, the more IDV, more the premium amount.
What is No Claim Bonus (NCB)?
NCB or the no claim bonus is the reward given to the car owner by the insurance company, if the car has no claims filed in a policy year. It is offered in the form of discounts on the next premium amount for the following policy year. Save a lot of money by driving slowly and carefully.
Which type of car insurance policy is better?
Undoubtedly, a comprehensive car insurance policy is lot better than a third-party policy. And hence, it is highly recommended.
What is the benefit in the long run?
Going with the worse experience faced by Mr. Ravi, we can definitely recommend you to buy a car insurance online or through offline mode. Just for the sake of saving Rs.15, 000 today, he had to pay Rs.95, 000 when his car met with an accident. This proves that the small premium you pay for car insurance policies is really worth. Mr. Ravi was absolutely safe after the accident. But what would have happened if he or any third-party involved on the accident needed medical support? Or what is something unexpected had happened?
A car insurance policy requires only small premium amount, but it has the potential to do a lot in the time of need. And hence, you should buy or renew your car insurance policy today!
Have you ever encashed the benefit of a car insurance policy? Share your experience in the comment section below! Happy & Safe Driving!