Why Does One Need Car Insurance?

Have you ever wondered why you need car insurance? Well, a good motor insurance cover is needed not just to protect your vehicle but also to protect your finances. Yes, that is correct. There are many benefits of getting car insurance. Take a look at this article to know all about the useful benefits of buying a good motor insurance policy.

Claims payable in car insurance

Like mentioned above, car insurance is important for two reasons – to cover your car and to cover your bank balance. If the insurance provider doesn’t take care of the claims, you will have to foot all the bills yourself. That can be a tough task to do and you will end up with a deep hole in your pocket. So buy a term insurance plan and you will be sure to receive the following claims as and when there is a need for them:

  1. Third party claim: To start off with, car insurance has two types – the third party cover and the comprehensive cover. You can get all the third party related claims settled under a third party plan. This includes damages to the vehicle of a third party. If an accident happens because of your error, you will be able to ask your insurance provider to pay the claim to the third party on your behalf.
  2. Legal claim: If a third party sues you and brings about a legal case upon you, your insurer will pay a claim. You can use the claim money to settle your otherwise steep legal bills and fight the case in the best possible manner.
  3. Medical claim: If you buy a comprehensive cover, you will get provisions for yourself as well as your vehicle. This is not available in a third party cover. Under a comprehensive cover, your health bills will be compensated if you require hospitalisation post a road accident.
  4. Own vehicle claim: If your vehicle gets dented, bumped or even more severely damaged in a road accident, you can make a claim on your comprehensive car insurance policy. You can also make claims for damages to your vehicle due to natural disasters such as earthquakes and floods. This apart, if your car is stolen or damaged beyond repair, your insurance provider will pay a claim. The amount will be large enough for you to replace the vehicle altogether.
  5. Personal accident claim: You are eligible for a personal accident claim under a comprehensive car insurance policy. So if you die in a road accident, your family will get a death benefit. If you are left permanently or temporarily injured in an accident, you will get compensation from your insurance provider as well.

These are the common car insurance claims that you can expect to get when you have a good and reliable car insurance plan with you.

Third party property damage in car insurance

As you saw, the covers in a third party car insurance plan and a comprehensive car insurance plan are quite different from each other. So you need to analyse your own needs and see which plan is better suited for you. If you choose a third party cover, you will get a cover against third party property damage, among others. This means that if you accidently destroy or damage a third party’s vehicle, the insurance provider will pay the compensation to the third party on your behalf. Then, let’s suppose you drive into the boundary wall of a house and break it. Then too the insurer will pay the claim to the third party and you won’t have to worry about making any payments from your own pocket.

Conclusion

It is crucial for everyone to own a car insurance plan. However, before you make a purchase, you must read the policy documents very carefully to understand how you’re chosen plan works. You also need to choose the type of cover very carefully. Not everyone has similar insurance requirements. So you may need a third party cover while your friend may need a comprehensive cover. You must therefore assess your own requirements, do your research, run an online comparison between the available plans and then arrive at your ideal policy. This will help you to not only find the best car insurance cover, but it will also allow you to stay covered in an economic and comprehensive manner.