Motor Insurance policies are legally obligated to safeguard the financial interests of vehicle owners. Any unfortunate accident can cause car damage and even bodily injury, which may sometimes result in death. To secure yourself financially from such incidents, it is always better to have vehicle insurance, also known as motor insurance. To avail the benefits of motor insurance, the vehicle owner must pay its premiums on time. The premium depends on certain factors, such as the car's model and age. In this blog, we will examine five important benefits of buying motor insurance in detail and understand their importance.
Why insurance for vehicles is important?
According to the Motor Vehicles Act, third-party insurance is compulsory in India. The vehicle insurance covers the owner from any financial losses incurred by unforeseen circumstances, such as natural disasters, accidents, theft, etc. The comprehensive coverage safeguards your vehicle and your finances, while third-party insurance protects you from liabilities arising from accidents involving others. The insurer will insure any damages or loss to an insured motor, the third party, or the policyholder.
Different types of motor insurance
Let’s check out different types of motor insurance available in the market so that you can make an informed choice for your vehicle. Third-Party Insurance: Third-party insurance is a minimum legal requirement. As its name implies, this type of insurance covers the costs of damage or injuries that you cause to a third party or property. But, it does not cover damage done to your vehicle. Besides, the premium for such type of insurance will be lower than other types. It is compulsory to have third-party insurance in India. Own-Damage Insurance: A standalone own-damage policy provides coverage against any damage/losses incurred to your vehicle from accidents, collisions, natural disasters, theft, fire, etc. If you already have third-party insurance and feel you want to protect your vehicle, you must consider buying your damage insurance. Comprehensive Motor Insurance: The advantages of motor insurance are that it covers own damage & third-party insurance. The comprehensive motor insurance provides 360-degree protection coverage to your vehicle. You can avail of a motor insurance plan against various risks like fire, theft, mishap, etc.
Benefits of motor insurance
Motor Insurance in India acts as a protection and safeguards you from any potential risks that happen due to accidents, natural calamity, theft, or other liabilities. Let’s check out the benefits of the motor insurance policy.
Financial Protection Against Accidents
You cannot eliminate the risk of motor damage in an accident. Besides, the repair cost is expensive and will burn a big hole into your pocket. Buying a vehicle insurance plan prevents you from such expenses as your vehicle insurance provider may bear a considerable percentage of the repair cost.
Coverage for Third-Party Liabilities
Buying a third-party insurance policy is compulsory in India. Moreover, it lowers your liability if any accident happens to you. An insurance provider covers damages caused to the third-party property and injuries, if any. In addition, you will be covered from legal repercussions if the other party files a case against you.
Protection Against Theft and Vandalism
A stolen vehicle will Cost a fortune and your heart. However, if your vehicle is termed the total loss (after an accident or theft), the insurance company will pay you a sum equal to your vehicle’s current market value.
Natural Disaster and Fire Damage Coverage
Many comprehensive insurance policies for vehicles provide coverage if your vehicle is damaged by a fire or natural disaster. If you reside in areas with uncertain weather, policies are significant for your vehicle's safety. It's crucial to carefully review your policy to understand the specific coverage for natural disasters and fire damage.
Access to Cashless Repairs and Network Garages
Another key benefit of a comprehensive motor insurance policy is its cashless claims facility, which provides complete benefits to repair your vehicle without paying at the network garages. The insurance providers will settle repair costs directly with their network garages. So, you just need to drop your vehicle off after the mishap, complete the formalities, and take it when it’s ready without any bills or charges.
Conclusion
To summarize, protect yourself and your car with comprehensive motor insurance. New drivers especially should explore the benefits of car insurance. Choose a policy that's easy to understand and purchase from a reputable insurer known for excellent service. Always compare features of motor insurance before making a decision. Considering the importance of motor insurance, you just cannot miss out on Universal Sompo's motor insurance policy , which provides an array of plans offering optimal protection and coverage. Buy vehicle insurance online and enjoy the vast network of cashless garages, the least paperwork, and an easy claim process.
FAQ
Yes, many motor insurance policies include roadside assistance as an add-on feature. This service provides help with towing, minor repairs, fuel delivery, jump-starting a battery, or changing a flat tire, ensuring support during unexpected breakdowns.
Motor insurance covers repair costs, medical expenses, and third-party liabilities in case of accidents. It minimizes out-of-pocket expenses by providing compensation for damages to your vehicle or others' property, safeguarding you from significant financial burdens.
Motor insurance ensures financial security by covering repeated accident risks, theft, or natural calamities over time. Comprehensive policies also protect against inflation in repair costs and offer add-ons like depreciation cover, saving money on expensive replacements.
NCB rewards you with discounts on premiums for not filing claims during a policy term, encouraging careful driving. Accumulated over consecutive claim-free years, the discount can reduce premiums by up to 50%, offering substantial savings.
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