Every policyholder should have car insurance types to protect their expenditures due to car damage losses from unexpected occurrences. A car insurance will help you ride your vehicle with peace of mind. While you cannot cushion wrap your vehicles against unintended damages or forfeiture, you can assure their security with car insurance.
Accidents and collisions cannot be prevented. Having insurance for your cherished car always helps you in several ways. Appropriate car insurance can help repay your car damage when it encounters unexpected things like road accidents, damage through natural calamities, etc. It becomes imperative to secure insurance when you buy a car, not just because of legal requirements but also for your car’s security.
Why Motor Insurance is Needed?
As the number of vehicles on Indian roads rises day by day, despite being a cautious driver, you are always in danger of being in an accident. And it is not just drivers’ lack of attention or carelessness on the road. Sometimes, pedestrians cross illegally, stray animals on the roads, or trying to protect kids on the road. Accidents can happen at any place, at any time. Understanding the importance of car insurance is crucial.
Types Of Motor
Zero Depreciation
A zero dep is an additional coverage under which the insurance company does not charge the reduced valuation by the insured car. Under a zero depreciation add-on in car insurance, a policyholder can claim the total cost of the exchange of car parts in case of unexpected damage.
Benefits of Zero Depreciation
If you have a car which you purchased recently you should prefer zero depreciation insurance. Here is it why:
- Luxury Cars: It is crucial to have insurance for owners of luxury cars as their car parts are usually high due to their exclusive parts.
- Inexperienced Drivers: New drivers lack the experience of driving which can totally prevent accidents or there are boosting chances of damaging their own vehicle.
- Driving in Accident Prone Areas: Driving in such areas where accidents can be prevented easily which raises the risk of accidents or damage to your car.
- Expensive Car Parts: As some specific car parts are highly expensive. The owners can save themselves from spending their huge amount of money by having the insurance already.
Coverage
Zero depreciation provides full coverage of all body parts apart from tires, batteries and engine components.
Comprehensive Car Insurance
Comprehensive car insurance insures legal responsibilities to others. It gives full security against incidents like; fire explosion, theft, animal incidents and also including damages by the natural disasters like earthquake, floods etc that can lead to financial burden.
Benefits of Comprehensive Car Insurance
- Customization Options: You can frequently add additional features like zero depreciation policy, emergency roadside service and coverage for supplies.
- Third-Party Liabilities: It comprises protection for damages caused to the third party motor vehicles or their belongings. Including physical injury to the third party ensuring financial safety against legal responsibilities.
- Personal Accident Cover: Many comprehensive policies give personal accident cover for the driver and passengers, offering compensation for injuries or loss of life due to an accident.
Coverage
Apart from fire explosion, theft, animal incidents and damages by the natural disasters. It covers personal accident cover.
Third-Party Insurance
Third-Party Insurance is often referred to as third liability insurance. It is a type of insurance that protects you against damage or injuries to third-party vehicles, bodily injury or other personal property harm. This policy does not offer any coverage to your vehicle.
Benefits of Third-Party Insurance
- Lower Cost: Usually less expensive than comprehensive car policy, making it an cost-effective choice for financially aware drivers while still covering the essential insurance needs.
- Peace Of Mind: It offers comfort knowing that you have financial security against legal responsibilities and possible demands from third parties influenced by incidents your vehicle is involved in.
- Legal Standards: It satisfies legal criteria in many countries, making sure you can operate your vehicle legally on the roads.
Coverage
It covers only the damages of the third-party vehicle.
Conclusion
Understanding the various types of car insurance is crucial for all car owners. Car insurance is required to cover the financial losses due to accidents. Insurances can be of three types depending on their coverage. Zero Depreciation car insurance provides full coverage of the damage. Comprehensive Car Insurance covers damages from natural calamities. Third-Party car insurance covers the damages to the third-party vehicle.
