The Motor Vehicles Act mandates each and every vehicle registered in the country to have a valid insurance policy. While it is true that most people insure their vehicles because of the government mandate, but it also has a lot of benefits that should be given equal importance. Your vehicle insurance policy cannot be compared to other insurance products that offer an assured sum in return on maturity of the policy. General perception of buyers is that, car insurance policy leeches off a certain percentage of the income; whereas in reality, it offers protection against unforeseen circumstances which are often neglected in financial planning.
Here are some of the key benefits of your auto insurance policy:
Covers for road mishaps
Your insurance policy will compensate for the cost of repairs if your vehicle was involved in an accident. In addition to that, it will take care of the medical expenses of the rider, if he/she has sustained severe injuries that require hospitalization. Make sure that you check the capping on medical expenses at the time of purchasing the policy.
Pays for replacement if your vehicle is stolen
You come out of your home with keys in hand and get shocked finding that your car went missing. It definitely is one of the worst feelings to find your favorite possession being stolen away, but with a vehicle insurance cover, you don’t have to panic. So, if you have a comprehensive insurance plan for your car, then you just have to file an FIR with the police and approach your insurer for settlement of claims. Upon verification of the documents provided, your insurer will reimburse the value of the stolen car.
It covers for third party liabilities
Your insurance policy does not only cover you and your car, but it also offers protection from legal liabilities arising due to damages caused to third party. Generally, insurance policies cover third party liabilities such as bodily injury, damage to vehicle, death, and permanent disability.
Covers for damage due to flood
Flood water can cause sufficient damage to your vehicle’s upholstery and even to mechanical components. So if you live in flood prone areas, you should opt for a comprehensive insurance plan that will reimburse for flood damage repairs.
It will pay for damages due to fire
Vehicle fires can occur due to a number of reasons and it will definitely do a lot of damage to the interior as well as exterior. A comprehensive vehicle insurance plan will cover for all damages due to vehicle fire, regardless of what caused it.
No-claim Bonus
Your vehicle insurance policy also offers a no-claim bonus if you do not make any claims during the policy period. The no-claim bonus amount varies from one insurer to another, and it is offered during policy renewals. Some companies provide a discount on the insurance premiums for the year which preceded a non-claim year. Which means, for each year you are insured without making claims, you will earn bonuses for the following year.
Types of coverage offered under vehicle insurance policy
Your vehicle insurance policy offers various types of coverage with each one having different benefits. However, additional features covered under the plan will have a price tag of its own. Given below are some of the common types of coverage offered by an auto-insurance policy:
Here are some of the key benefits of your auto insurance policy:
Covers for road mishaps
Your insurance policy will compensate for the cost of repairs if your vehicle was involved in an accident. In addition to that, it will take care of the medical expenses of the rider, if he/she has sustained severe injuries that require hospitalization. Make sure that you check the capping on medical expenses at the time of purchasing the policy.
Pays for replacement if your vehicle is stolen
You come out of your home with keys in hand and get shocked finding that your car went missing. It definitely is one of the worst feelings to find your favorite possession being stolen away, but with a vehicle insurance cover, you don’t have to panic. So, if you have a comprehensive insurance plan for your car, then you just have to file an FIR with the police and approach your insurer for settlement of claims. Upon verification of the documents provided, your insurer will reimburse the value of the stolen car.
It covers for third party liabilities
Your insurance policy does not only cover you and your car, but it also offers protection from legal liabilities arising due to damages caused to third party. Generally, insurance policies cover third party liabilities such as bodily injury, damage to vehicle, death, and permanent disability.
Covers for damage due to flood
Flood water can cause sufficient damage to your vehicle’s upholstery and even to mechanical components. So if you live in flood prone areas, you should opt for a comprehensive insurance plan that will reimburse for flood damage repairs.
It will pay for damages due to fire
Vehicle fires can occur due to a number of reasons and it will definitely do a lot of damage to the interior as well as exterior. A comprehensive vehicle insurance plan will cover for all damages due to vehicle fire, regardless of what caused it.
No-claim Bonus
Your vehicle insurance policy also offers a no-claim bonus if you do not make any claims during the policy period. The no-claim bonus amount varies from one insurer to another, and it is offered during policy renewals. Some companies provide a discount on the insurance premiums for the year which preceded a non-claim year. Which means, for each year you are insured without making claims, you will earn bonuses for the following year.
Types of coverage offered under vehicle insurance policy
Your vehicle insurance policy offers various types of coverage with each one having different benefits. However, additional features covered under the plan will have a price tag of its own. Given below are some of the common types of coverage offered by an auto-insurance policy:
- Liability Coverage
- Collision Coverage
- Comprehensive Coverage
- Personal Injury Protection
- Medical Reimbursements
