5 Financial benefits of having car insurance in India

5 Financial benefits of having car insurance in India

Car insurance is an agreement between the insured and the insurance company, who promises to pay for the coverages that you have purchased from them. Car insurance secures you from the financial loss, caused due to theft or accidents. Nowadays, it is so popular that people can avail of cheap car insurance online very easily.

If one avails a car insurance policy, they can safeguard their vehicle. You can opt for cheap car insurance online where you can get financial protection against your car by paying a minimum premium and getting high coverage in return.

Some financial benefits of having a car insurance policy in India

Based on this risk diversification, following are the five financial benefits of having car insurance in India:

Cashless Garage Network

Under car insurance policies, you also get the benefit of a cashless garage, where you don’t need to pay any repair charges. The insurance company will settle down the bill on your behalf.

Concept of deductibles

There are two types of deductibles, one is mandatory, in case of which you have to bear some extent of the car’s repairs expenses. Another one is deductibles of your choice, where one would want to bear most of his costs to minimize the premium amount. But, it is preferable not to take deductibles on your own because if you do so, there is no means of going for an insurance policy. Instead, you can get cheap car insurance online, where you have to pay less and get more coverage.

Covers your financial loss

The main reason to go for insurance is to stay protected from any financial crunch at the time of loss. In India, two types of car insurance are provided:

  • Comprehensive car insurance: It covers a wide range of damages like a loss to passengers of your vehicle or other vehicles, etc.
  • Third-party car insurance: The benefits you enjoy here are restricted, as it only covers the losses of the third party, not the losses of the policyholder. The insurer will compensate for the damages that occur to the third party like bodily injury or damage to his car, etc.

Customized policy

Customizing a basic insurance plan as per your requirements makes it your personal insurance policy. By adding riders, which is also known as add-ons, extends the coverage as per your needs. You can get these customizations at cheap car insurance online very easily.

If you want to protect the part of your vehicle from any unexpected hazard, you can take a rider for that. Taking a rider will increase your premium amount. These are the popular riders that people ask the most:

  • Roadside Assistance: If in case your vehicle gets damaged on the road, then under this add-on, the insurer will provide you with an alternative mode of transport, or any other convenience.
  • Extended accident coverage: It covers accidents that cause permanent or partial disability or death.

Apart from the add-ons mentioned above, they also provide Engine protection, NCB protection, Medical expenses, Vehicle replacement, etc.

NCB (No Claim Bonus)

It is a discount provided on your premium for not making any claim during the policy period. In the first year, for not making any claim, you will get a discount of 20% to 25% and as on till 50%.

These were the five financial benefits that you’ll get if you go for a car insurance policy. To enjoy the full benefit of car insurance, you need to go for the cheap car insurance online, to get high coverage at a low premium.