Car Insurance

Car Insurance is a necessary planning that can help protect a person if he faces any car accident.

What is Car Insurance?

It is an insurance which is primarily made to provide financial protection against any bodily injury and physical damages occurred due to any accident. It also insures your vehicle from any theft, fire and also from natural disasters which can be very damaging at times.

Why Do You Need Car Insurance?
Financial Assistance for Travel Insurance

To cover all the expenses at the time of vehicle damage, injuries caused to passengers or the drivers as well.

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It comes under legal requirement which every person should follow as a mandatory rule.

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There can be one exception in which you might not need car insurance, if you have declared your vehicle off the road through a Statutory off Road Notification (SORN).

Types of Car Insurance:
Basically there are three levels of cover one can choose from –

• Third Party Property Damage : It can be termed as the minimal non- compulsory policy which isn’t always the cheapest. This policy covers injuries to other people and also damage to others property.

• Third Party, Fire and Theft : It is a policy which will cover all the damage caused due to fire also covering the cost of repairs and replacement vehicle if it is stolen.

• Comprehensive Car Insurance : The damages occurred due to result of collision, flood, fire, storm and theft are covered under this policy. It is considered as the highest level of cover and also the most extensive one as it not only covers your own car but also covers accidents involving other people.

Benefits Of Car Insurance:

1. A minimum amount of insurance is needed by all the states in India. It can add a value to every state by creating such insurances.

2. The accidents sometimes can lead to death. So, it provides benefits to survivors.

3. It can include all the legal fees needed in law suits brought against you as the result of an accident.

4. The bills of vehicles during repairs are also covered by such insurance.

5. Damages caused by theft, fire etc can be covered.

6. Additional discounts – Premium discounts are allowed for theft or for owing more than one policy with the same insurer. There is also an added advantage to extend coverage to others driving your car with your permission.

7. No Claim Bonus – If a claim is not made during the policy period, a No Claim Bonus is offered on renewals which provide you to fulfill certain terms and conditions.

Factors Affecting Car Insurance:

Policy and deductibles

It is your choice to choose your policy and deductibles, so choose wisely as it will play a major role in your monthly payment. On a general term choosing a higher deductible means a lower monthly payment whereas choosing a lower deductible means a higher monthly payment.

Where you live

The place where you live in can be an important factor. Urban drivers have to more car insurance comparatively, to small towns and rural areas due to higher rates of crashes and theft.

Driving Records

The driving records play a necessary role as well. Drivers causing crash often are asked to pay more than who has been crash- free for a period of time.


It is seen mostly, the drivers under the age group of 25 are involved in crash more than the rest. There are discounts to student – driver who maintain good grades.

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