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Because of the Motor Vehicles Act of 1988, every person who owns a car must have some form of car insurance policy or third-party liability coverage. If this is not done, it may result in legal complications, and the vehicle’s driver may be subject to a penalty.
The rising prevalence of automobiles on the road has resulted in a concomitant increase in the likelihood of unplanned incidents. Car insurance protects an individual financially in the event of bodily harm or property loss, putting them in a wiser position to avoid potentially disastrous situations.
A comprehensive car insurance policy will cover all the costs associated with repairing or replacing your vehicle in the event of an accident. The insurer of this automobile insurance coverage will pay for any damages to your car, any legal liabilities you may incur to third parties, thefts, and any injuries you may sustain.
Thefts and damage caused by natural disasters are covered by comprehensive vehicle insurance, among other things. Coverage can be increased by purchasing additional add-on covers, such as those that protect the engine, accessories, provide roadside help, and so on.
Inclusions:
To make an educated choice regarding auto insurance, one must first be aware of the coverages and provisions included in the policy and those not covered by it. It will help if you familiarise yourself with the policy wordings offered by the general insurance provider for your coverage. The following is a list of both natural and man-made disasters that are typically covered by comprehensive car insurance policies:
- The destruction brought about by natural disasters
- Fire \vandalism \theft
- To the detriment of a third party
- Falling objects, such as trees, can cause significant damage to a car.
- A car that sustains damage or is destroyed as a direct result of an act of civil unrest, such as rioting
Exclusions:
If a collision causes damage to a vehicle, it is only possible to file a claim for comprehensive car insurance if the policyholder possesses comprehensive car insurance coverage. Similarly, a complete car insurance policy excludes much scope for many reasons.
- Depreciation value
- The car has had normal wear and tear.
- Malfunction of the vehicle’s electrical or mechanical components
- The harm was done by an individual who was driving without a valid licence
- The damage was done by driving while under the influence of alcohol or drugs
- Accidents that occurred because drivers were under the influence of alcohol or drugs
- To the detriment of the tyres and tubes
The next time for the policy to be renewed –
A few months before your current insurance policy is set to expire, the insurance company with which you have an existing policy will begin sending you reminders to renew it. The new insurance policy will go into effect after the current one has run its course and been terminated. It is crucial to continue your car insurance on time to take advantage of the no-claims bonus. *
Conclusion:
Many individuals believe that comprehensive car insurance policy are far more expensive than third-party liability insurance. It is not a given that an all-inclusive plan will always be the costliest option. When compared to the third-party liability insurance plan, comprehensive auto insurance coverage has the potential to be the more cost-effective option.
Always shop for the ideal deal on comprehensive auto insurance online to determine which policy ideally meets your specific requirements and preferences.
* Standard T&C Apply
** Currently, there are 2 tax regimes in India – new and old. To get the tax benefit you desire, choose the correct one after consulting an expert. You can opt for a regime change during the next financial year.
# Visit the official website of IRDAI for further details.
## All savings are provided by the insurer as per the IRDAI-approved insurance plan. Standard T&C apply
Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.
