Introduction-
Car insurance is a necessary protection against possible losses in an accident or even theft. It is a relationship where you pay a premium and you get covered by the insurance company that you choose.
Why is Car Insurance Important?
1. Financial Security- If you or your vehicle has caused damage or an injury to some other party, car insurance helps cover the costs associated with repair, medical expenses, and damage to properties.
2. Legal Requirement- It is a legal requirement in several countries to have vehicle insurance. Not having one might bring about legitimate repercussions.
3. Helps Indulge in peace of mind- When an individual knows that he is covered financially while driving, it allows him or her to feel more relaxed.
Different Types of Car Insurance types-
1. Third-Party Liability- This is the most common form of insurance that protects the policyholder from having to pay for causing damage or even injury to people in an accident.
2. Own Damage- This type creates a kind of coverage over the vehicle which would cover costs lost due to accidents, theft, natural catastrophes, or vandalism.
3. Personal Accident Cover- This is specifically done for oneself and their passengers, protecting them from injury or death due to an accident.
4. Comprehensive Cover- This is in between the third party liability and own damage providing cover against all risks involved about the car and other third parties.
Car Insurance Price India –
One may find it somewhat difficult to pinpoint an average among policyholders but for those in possession of comprehensive car insurance for a middle-class sedan in an urban locale, it would be reasonable to expect an average figure that ranges between ₹10,000 and ₹20,000 a year. This equates to a monthly figure of close to ₹833 to ₹1667.
Ways to Lower Car Insurance Costs-
1. Shop Around- Look for the best offer by getting write-ups from several companies.
2. Insure yourself- Maintaining a good driving record of no accidents could get you an advantage with lower premiums.
3. Increase deductible- One could also increase their deductible which will automatically lower their premium but in the case of a claim, one would have to pay more out of their pocket.
4. Use telematics- Discounts are given by insurers when a telematics device is placed in the secured car to monitor the behavior of the driver.
5. Purchase a comprehensive cover- Even though one must have a third-party cover for risk, purchasing a comprehensive cover is more appealing in the long run even if it is comparatively more expensive.
Conclusion-
Costs of car insurance in India depend on the size of the vehicle, age and experience of the driver, geographical area locus, and the type of coverage chosen. A policy with comprehensive coverage provides excellent protection but usually costs a higher premium amount. It is important to seek a car insurance cover that is the best fit for you in terms of your requirements and is also competitively priced. It is advisable to seek quotes from multiple insurers and compare the premiums and other terms and conditions offered. By employing active measures to ensure factors such as better driving records and higher deductibles, and controlling more costly driving levels, one can make the best approach to avoid high premiums and in turn, ensure safety for yourself and others.
FAQ-
1. Is car insurance mandatory in India?
Indeed, it is compulsory to buy at least third-party liability cover for all vehicles in India. It is a legal requirement to use a car on Indian roads.
2. What are the various kinds of vehicle insurance contracts?
Third-party Liability Insurance- This type of insurance policy covers expenses for damages to third-party property or injuries to individuals caused by your vehicle.
Comprehensive Car Insurance- This is insuring against both own damage sustained to the vehicle and third-party liabilities. Such includes theft, natural calamities, and accidents among others.
