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Important Things You Should Know About Car Insurance

Written by Sharad Bajaj
Updated On Oct 15, 20232 min read
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When buying a new car, the possibility of accidents or any damages hardly comes to the mind. Most individuals delay the responsibility of purchasing car insurance till it is too late. Though car insurance is considered as an additional cost, it is important to invest in it to safeguard against damage or natural calamities.

Car insurance protects your car from unexpected risks and you from incurring losses in case of a contingency. The cover of the car comprises the insured party, the insured car, and third parties. The cost that one has to pay is dependent on things such as the value of the car, the type of coverage, the classification of the car, and so on.

Important Things You Should Know About Car Insurance

What Does Car Insurance Cover?

Car insurance covers several different situations in which you would be liable to pay repair bills or medical expenses. Some of which mentioned below:

  • Damage or Loss Because of Man-Made Disasters

Disasters like theft, burglary, strike, riot, terrorist action, and any harm caused in transport via rail, road, or water are covered.

  • Loss or Damage Due to Natural Calamities

Events outside your control, such as landslide, flood, typhoon, hurricane, cyclone, lightning, storm, earthquake, etc. are covered.

  • Third Party Legal Liability

It guards you against the lawful liability of unintentional damages that have caused loss of a third party or permanent injury. It also covers damage caused to any adjacent property.

Things Not Covered Under Car Insurance

Your insurers do everything so they can guard you from negative results, but there are some exceptions. Car insurance policies usually do not cover:

  • Your car, when someone uninsured is driving your car
  • You, when you are driving someone else’s car
  • Damage caused when the vehicle owner is under the influence of alcohol or drugs
  • Deliberate loss or damage to vehicle
  • Damage caused by the driver having no valid license
  • Vehicles being used otherwise than in line with limitations as to use
  • Loss or damage due to nuclear risk or war
  • General ageing of the car

Important Aspects to consider while Choosing an Insurance Plan

A few basic features are there that one should look for in a car insurance policy. These include

  • Brand reputation of an insurance company is an important factor to consider while purchasing a car insurance policy.
  • Check and compare the coverages offered by the plans before buying a car insurance policy.
  • At the time of purchasing a car insurance policy, find out how vast and powerful is the system of the cashless garage of an insurance organization.
  • At the time of buying an insurance policy, check which all discounts you can avail.

You must always consider these factors while purchasing a car insurance plan so that you enjoy a stress-free experience particularly at the time of an insurance claim settlement.

Conclusion

As a car owner, you should insure your car to have financial security and peace of mind while driving. Take your time, compare rates, and select well. And do not forget to keep the above-mentioned points in mind.

Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.

Disclaimer

This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.
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Written by Sharad Bajaj
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 Sharad is an insurance industry veteran who has managed motor insurance products for over a decade. He helped set up and scale the motor insurance vertical for a leading insurance company in his previous stint. In his spare time, Sharad likes to read and be in tune with nature.

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