Car insurance is an agreement in which the insurer assumes the risk of any loss the owner of a car may recover through damages to property or person as the result is any accident.
How does car insurance work?
It is an agreement between the Insurance Companies and the Car Owners, where the car owner will pay some amount to the Insurance Company. On a Quarterly, yearly basis for covers for loss or damages caused to the car on accident. And it is mandatory in India whether it is for commercial vehicles or personal vehicles. Damages recover to the car either due to an accident, certain natural calamities, or theft.
Types of car insurance plans
- Third-party
- Comprehensive
Third-party insurance plan-
Third-party insurance is common insurance in the country. It only recovers damages caused to a third-party person, vehicle, or property covered by this Insurance. Mainly it is not considered valuable care insurance this plan does not cover the theft of the car or loss due to natural calamity.
Comprehensive insurance plan-
Comprehensive insurance is also the most command and valuable type of car insurance that covers losses due to the third party and damages due to own. It covers theft and natural calamity.
Types of car insurance coverage:
- Collision
- Personal injury
- Zero-depreciation
Collision coverage-
Collision coverage covers the vehicle only in the case of collision the vehicle in which includes repair expenses for the vehicle
Personal injury-
Personal injury cover protects the owner of the car in the case of an accident. The hospital and Medical charges are covered y this insurance.
Zero-depreciation insurance-
Zero-depreciation insurance is known as adding Insurance which for example when your car is damaged and replaces spare parts but the insurer considers it as a deprecated value buying through this insurance will help you get the complete claim amount without deduction of depreciation value.
Why car insurance Is needed-
- Car insurance protects us from unplanned liabilities and unthinkable events. Car insurance plays the role of savior.
- Care insurance provides safety to the survivor at the time of the accident
- Car insurance ensures the repair of the harmed property.
Car insurance is an agreement with a company in which you pay regularly on a quarterly and yearly basis for compensation for damages at the time of accidents. You should know the different types of coverage provided by the company and should know the right policies for you.