Car insurance is done to protect your vehicle from unanticipated dangers. It essentially gives security against the losses incurred as a result of unavoidable instances. It helps cover against theft, financial loss caused by accidents and any subsequent liabilities.
What is Car Insurance
Car insurance is an agreement between the insurance company and the car owner wherein, the car owner will pay premiums and the insurance company covers for misfortune and harm caused to the car. Car Insurance is mandatory in India regardless of whether it is a commercial vehicle or a personal vehicle. The greater part of the insurance companies in India have tie-ups with auto producers and they offer car owners instant quotes.
Need of Car Insurance
Having car insurance is essential because it covers your expenses in the event of vehicle damage or injuries to other drivers, passengers or pedestrians. Insurance can also provide financial support if your car is stolen, vandalised or destroyed by fire. The cover level of Car insurance can be the insured party, the insured vehicle and third parties (car and people).
The premium of the insurance is dependent on certain parameters like the value of the car, type of coverage, vehicle classification; voluntary excess etc. Car insurance gives the confidence to drive peacefully.