Car Insurance Benefits

Benefits of Car Insurance

By now you know thatowning a car is synonymous with owning a car insurance policy. It is required by law, and you may very well be on your way to trouble if you cannot comply with it. What are the benefits of having your car insured? The answer is simple. It provides economic security, responsibility in case of accidents and payment along with total peace of mind, thereby benefiting the society as a whole.

Choosing the right insurance

With internet facility available at our doorstep, start from a scratch, go through various motor insurance reviews, to gather proper and accurate knowledge or idea about it. India has numerous companies offering insurance, but you have to choose the appropriate one.

You should always go for such companies or policies which offer you maximum facilities at a minimum premium. This is calculated on the basis of the age of your car and the type of your car, as obviously, a car used for business purpose and that used for household use will have a different rate. Policies also differ according to the extent of damage caused in an accident and in cases of theft.

Factors which determine the premium amount

• Make and Model of the Vehicle
• Year of Manufacture
• Place of Registration
• Current Showroom price of the vehicle
• Whether Client is Individual or Corporate
• The principal insurance amount and its subsequent premium also vary according to the price of the vehicle.

Which type of policy is better and why?

 A comprehensive motor loan is better, as it also covers you against losses arising from theft, natural calamities, vandalism etc.

Considerations

Car insurance can be confusing and difficult to understand. Did you ever think what might happen if you injured someone else while driving and had to pay for his medical bills? Sound like a lot of trouble? On the other hand, owning and maintaining a car is quite a financial burden on many, insurance payment being a big part of it. But, insurance benefits clearly outweigh the cost, and here are a few of the reasons why you should purchase it:

Medical Payments

You may not need this coverage if you already have health insurance, but it is a good alternative for those who still does not have a health insurance as the policy covers the doctors and hospital bills,rehabilitation costs for the passengers and the driver.

Rental Reimbursement and Towing:

The policy pays for towing the wrecked vehicle and the payment for a car rental while the automobile is being fixed after an accident. It also covers the bills of vehicle repairs due to damage caused in an accident.

No Claim Bonus

If you do not make a claim during the policy period, a No Claim Bonus is offered on renewals provided you fulfill certain terms and conditions.

What does Motor Insurance not cover?

Any loss due to wear and tear, breakdown, accidents due to drunken driving and war perils are not covered by motor insurance. The insurance also does not cover failure or breakage when the vehicle is used outside the geographical area.

Car insurance acts like a great friend at the time of crisis.People who drive and have car insurance know that they have a safety net that will help them tackle any financial or legal problems that might arise out of a car accident.

Reliance General Insurance is always there to protect you and your car.