For a car owner, it is much necessary for him to have an insurance policy for his vehicle. It is crucial for him to follow the provision made by law. It is mainly done to safeguard the interest of the vehicle and its owner. In today’s times, the insurance service providers offer various insurance plans, and hence it becomes crucial for one to choose the best one among them.
One can choose a plan keeping in mind the need of a vehicle. The universal rule here is the premium increases with the increase in coverage, and hence one needs to keep a right balance while going for any of the plans available in the market. One needs to check the features and must also make sure if the plan can be customized to suit his needs.
The insurance coverage:
Primarily one can find plans with five types of insurance coverage which are discussed here:
- Coverage for Liabilities: It is the plan that covers the liability on your side. It means if the accident took place because of your fault. It covers a number of aspects and hence one need to know each of them in-depth.
- It covers the replacement or repair of the property that belongs to the third party which may be damaged by you. It can be termed as third-party damage as well.
- It covers the medical expenses of any third party who may have to get hospitalized or go for a considerable treatment as a result of an accident caused by your car.
- The owner can go for the minimum liability coverage, and the policy will also cover the same.
- If the higher coverage is considered here, one can have fewer burdens on his pocket as the majority of the claim amount can be covered by the insurance itself.
- If the sum assured amount is chosen wisely, you may not have to pay a hefty amount from your pocket.
- In case of death or injury to the third party, the insurance policy will offer coverage; and for this reason, you can save your back from massive payments. It is also necessary to meet the legal provisions.
- Coverage for collision: In case you have selected the collision coverage, it can help you save ample money if the car meets with an accident. In any case, if the repair cost turns out to be higher than the value of the car, the insurance company would pay the market value of the car. Therefore, it proves to be a great deal. Usually, the collision coverage is chosen as per the age of the vehicle. In case the car is completely new, you must make sure that the insurance policy includes this advantage. In case you have a car loan on your head, you must go for a collision coverage plan. It can help you repay the amount if there is any problem with the car.
- Coverage for personal injuries: In an accident, there are high chances of personal injuries. For this reason, one must cover the same in the plan purchased. In the case of medical treatment and hospitalization, this coverage can be of great help. It also covers the medical bills for the driver as well as passengers under the plan of personal injury protection. If you have this coverage, it does not matter whether the accident happened due to your fault or someone else’s; the insurance company will pay the medical bills for you. Hence it can be highly supportive for the owner, driver as well as the passengers.
- Coverage for uninsured motorist: In this plan, you can have protection from the accident by any other vehicle which may not have an insurance plan. In case such vehicle gets into an accident with your car, you will not have to pay much from your pocket. Even if the Third Party Vehicle Insurance is not enough to meet the expenses, this protection can help you to meet the expenses for your vehicle. If you add the rider, you can have more saving on your cost of an accident. The additional damage or medical bills are also borne by the insurance company if you have this coverage.
- Comprehensive coverage: This coverage is perhaps the best one as it covers almost everything that one may need; whether it is the driver, passenger or owner, vehicle or third-party or any uninsured motorist, vehicle or driver, a comprehensive coverage is enough for all. In case of damage due to weather, fire, flood, theft or any other such unforeseen event, the insurance company would offer coverage to the vehicle. One can have this coverage in his budget too; but for that, it is necessary to go for a little research.
Types of policies for car insurance:
There are three types of policies in the market; which are third-party, comprehensive, and add-on. Each of these policies has different benefits, and one can choose any of them as per his needs.
The benefits of buying a third-party coverage policy are many. This kind of coverage is affordable enough, and they cover injury as well as death. It also covers damage to the property and even fulfills legal obligations. It is suitable for old vehicles. However, it does not protect own vehicle from any damage.
The comprehensive policy is known as the best as it covers almost all the damages and risks. It protects the vehicle, the third party, the driver as well as passengers and the owner. It offers protection to the car against various man-made as well as natural damages. In case one wants more coverage, he can opt for additional riders.
In this policy, one can have some more benefits such as Road Side Assistance, Replacement of engine and NIL depreciation coverage for the vehicle.
One needs to be wise enough to find the right protection for his car, keeping in mind the above coverage.