Do you store extra raw material to always have the resource of food in a buffer? Do you make a hell lot of savings to use the money at the time of distress? Do you think the amount of raw material and your savings will always be sufficient to take care of your needs? No right?
That is why humans invest money in gold, bonds, mutual funds, shares, and insurance to create emergency fund. These instruments can pay when you do not expect. Similarly, a Comprehensive Car Insurance policy can pay for your claims when you do not imagine a loss to happen. Can you relate to this? If not, then understand how a Comprehensive Car Insurance policy can help you?
How can the Comprehensive Insurance Policy back you?
Money invested in an insurance policy is like money put by for a rainy day. This acts as an emergency financial source when your car happens to face an unpleasant situation due to various reasons as explained below.
- Can help you pay for Third-Party Liability Damages
A comprehensive package policy offers you protection for the own damage of the vehicle, an accident of the driver, and third-party liability damage. Suppose you hit another vehicle on the road accidentally.
The driver in the other vehicle was injured badly with multiple fractures and his car’s bumper was damaged. The repair cost of the car’s bumper was Rs.1,75,000 that includes the engine part replacement cost also. The injured driver was injured and admitted to the hospital for a week. The cost of his treatment was Rs.75,000 because he needed surgery on the shoulder.
The insurance company of the injured driver holds you responsible for the damage and asks you to pay for the losses. It could be a big amount for you to pay. Having a Comprehensive Car Insurance Policy will help you as your insurance company will pay for the liability incurred. For a car with a cubic capacity between 1000 cc to 1500 cc, you might have to pay a liability premium of Rs.3221/-. Against this premium, you could recover and pay for the loss amount of Rs.2,50,000 to the injured party. Isn’t that a wise decision to make?
- Add-on under Comprehensive Car Insurance will pay for Engine Damage:
Do you fear the damage to the engine of your car due to water regression, undercarriage damages, and leakage of lubricating oil? If yes, then buy the comprehensive car insurance policy and choose to enhance it with the Engine and Gearbox protection cover. This kind of loss is quite common in the areas that receive heavy rainfall that leads to the situation of flood. The premium for the cover is not high but it can save you thousands to get the engine repaired.
- Breakdown on Highway.
Imagine that you are on a road trip to Himachal. On the way, your car broke down and it cannot move. You are left stranded in the middle. After you get stuck, you will have to call for the pick-up in the company and then wait in the garage until your car is fixed.
But if you have a comprehensive car insurance policy with an add-on cover of roadside assistance, you will be provided with immediate help. The insurance company will take your car to the nearest service station and save you from unnecessary worries. Not only this, the insurer will make arrangements to take you to the nearest stay hotel where you can wait until the car gets fixed. The best part is a few companies do not even count this as a claim.
Think it like this that your car, parked outside the home, immediately catches fire due to a short circuit. Before you could do anything, the interiors of the car got damaged resulting in the loss of some connecting wires. It leaves you puzzled and your car got damaged in front of your eyes. The total cost of the repair was billed to an amount of Rs. 35000/-.
The damage to your car will be paid by the insurance company only if you have a Comprehensive Car Insurance. In absence of the policy, you will have to pay for the total expenses. Always prefer to buy a package policy to save your thousands.
- Accidental Damage.
A comprehensive car insurance policy supplies you with an emergency fund that can save you from a financial crisis. The insurance company pays you for the cost of repairs of the care needed because of any accidental damage. One fine morning on the way to your office, imagine your car was banged by the driver behind you. It caused a dent in your car. The total cost of the repair was Rs.17000/- which you will have to bear in case you do not have a package policy.
But if the policy is in effect, it can simply help you save Rs.17000/-.
A comprehensive Package Policy covers losses that arise due to theft. Suppose you own a Nissan Sunny 2018 model which was stolen in the year 2020. Without an insurance policy, you get nothing but to lose the value of the car, that is, the price at which the car is available.me
But if you have an insurance policy, you will be paid the market value of the stolen car with an add-on called return to invoice. The car insurance policy will indemnify you and not put you in a better place. A small amount of premium for the package policy will pay you for the value of the car on the date of loss.
- Financial security for you and your family
The best part about life is the uncertainty that keeps the adventure of living intact. But sometimes people may get unfortunate enough to be financially and emotionally impacted after severe car accidents. Have you ever thought of “What will happen to my family if I suffer from permanent disability or lose my life in a car accident?” Aaah! It’s disturbing, right? Hope that never happens to you but you can not predict the future at the same time. So if you own comprehensive car insurance, the component of personal accident cover will financially comfort you and your family in unfortunate situations like the above.
Buying a comprehensive package policy will be a better option because of the wider scope of coverage. You must note that the Third Party Liability policy is a mandatory policy which saves you from the huge legal liabilities, you might not be able to afford. Still, a comprehensive policy or the package policy is a better choice to make.
Buying the car insurance policy online is always a good idea because it helps in cutting the middleman/ insurance agent cost resulting in cheaper premiums, you directly interact with the insurer, easier claim process, and many other reasons.