Friend, just like math is not a favorite subject for many people in school, similarly, after buying a car, people find it difficult to understand the topic of insurance. But if you are ignoring it, then it is possible that you may suffer a big loss in the future.
In the last post we saw what is third party car insurance? How does it work and everything else, So in this post, we will explain the basics of car insurance in simple language. This will help you understand which insurance is necessary and which is optional. So let’s start!
Types of Car Insurance
Car insurance is mainly of two types:
1. Third Party Insurance
This is made mandatory by the government and is necessary for every vehicle.
2. Comprehensive Insurance
This is optional, but is safer because it also provides coverage for your own car.
What is a “Party” in Insurance?
Now you must be wondering what is this “party”. It is not a birthday or new year party, brother! In the world of insurance, “party” means:
- First Party – You who own the car.
- Second Party – The insurance company that provides you protection.
- Third Party – Any other person who is driving on the road or is in another vehicle.
Third Party Insurance: Why is it Necessary?
If due to your mistake a third person gets harmed, like someone else’s car or a pedestrian gets hurt, then your third-party insurance will cover the cost of this.
This is mandatory under the Motor Vehicle Act, and driving without it is illegal.
If you are caught without insurance:
- For the first offence, there will be a fine of ₹2000.
- For the second offence, there can be a fine of ₹4000 or even jail.
That is why it is necessary to take minimum third-party insurance.
Comprehensive Insurance: Should I Take This?
Along with third-party cover, comprehensive insurance also protects your own car. If your car is stolen, meets with an accident, or faces a natural disaster (like flood or fire), then the comprehensive policy bears the cost.
This is more expensive, but it is beneficial in the long-term, especially if your car is new.
Add-ons: Is it Necessary for Extra Protection?
Along with comprehensive insurance, some add-ons are also available which make your policy even better. Such as:
- Zero Depreciation Cover – The value of car parts depreciates every year. With this cover, you get the full cost of repair.
- Engine Protection Cover – If the engine fails due to water damage or any other reason, then this cover is available.
- Roadside Assistance – If the car breaks down on the road, this service is available.
- Consumable Cover – It also covers the cost of oils, nuts, bolts, etc.
Which Insurance is Best?
- If you have an old second-hand car, then third-party insurance will also work.
- If your car is new or expensive, then it will be better to take comprehensive insurance plus add-ons.
Conclusion
So friends, car insurance is a safety net that saves you from future heavy expenses. So do not take any policy without thinking—choose the best policy after thinking well and comparing.
If you have any problem, use an insurance agent or online comparison websites.
Drive safely and take care of yours and others’ safety!
