We buy a car to enjoy our life with our family and to fulfill our job or business requirements. At that time of happiness to buy a car, no one wants to think about the uncertainties present in our life. But uncertainties can happen at any moment and can also give a big damage. This damage could happen to you, your family and to your car. By taking a car insurance policy, you can take protection against these damages.
Car insurance is a type of insurance which covers the liability of own damage, damage to third party , damage to the car and its parts; in case of damages occurring from an accident, theft, fire, earthquake, flood, cyclone, etc.
The basic premium of car insurance policy is determined by tariff association. Companies add additional premium to the basic one on the basis of shape, size, value and use of car. Car insurance policies are normally available for one year. Discount on the car insurance premium is given to the insured if the insured has more than one car and the car is under personal care of the insured person.
Car Insurance coverage provides you cover against the following:
- Personal Accident: Car insurance policy gives financial help to the policy holder when he /she become damaged during driving the insured car.
- Third Party Liability: This facility helps you in the case, when other people claim against you for the damage of their life or property and demand compensation for these damages.
- Vehicle Damage: Car insurance also covers damage of car by fire, accident, theft, earthquake, fire, flood, cyclone etc.
Various add-on covers are also available on car insurance policies, these add-on covers are as follows:
- Zero Depreciation: This cover gives 100% of the value of the replaced parts of the car when any damage occurs to it.
- Collision Cover: This cover gives protection against damage to the car that happens in an accident.
- Invoice Price cover: This cover gives benefit to the insured when his car is stolen or totally lost. Through this cover insured person get the insured value of the car along with registration, road tax etc.
- Medical Expenses: It covers treatment for damage to the driver and passengers in the case of accident of car.
- Hospital Cash Cover: It covers daily cash benefit on hospitalization for the treatment and for other medical expenses in the case of car accident.