Car Insurances 295 views
Getting the car has become more of a necessity now than luxury which was perceived earlier. Also, buying the car has got much more easier these days with increasing income, easy finance availability, attractive discounts, reasonable interest rates and plenty more. But your work does not end with buying the car alone as you need to buy the insurance for your loved possession. The reason being the cover it provides in case your car meets unforeseen incidents like accidents or damage due to thefts, natural disasters like earthquake, etc. In the absence of car insurance, you may end up creating a deep hole in the pocket and making your finance go haywire. Thus, you must take car insurance, the cover of which has become comprehensive these days with a variety of add-ons. These add-ons do raise the premium amount but it is necessary to take because of the extensive cover they provide in case of accidents, as well as other benefits applicable to the same. You can see all that and their importance to your financial life in the points discussed below.
Zero depreciation, which is getting the attention of car insurance buyers in India, allows you to get the full claim settlement with no deduction of depreciation on the value of replaced parts of the vehicle.
Daily Cash Allowance
Daily cash allowance offers cover for the transportation cost of the owner and gets paid only when your vehicle needs to be repaired in a garage for over 3-4 days.
Retention of No-claim Bonus
No-claim bonus (NCB) is a discount that you get on not claiming in the past few years. These discounts accumulate over the years and go up to as high as 50%. But a single claim can drop the NCB to zero percent on policy without add-ons. But if you take an add-on, you can avoid this situation. Add-on can help you protect the NCB earning that you would have made even after you make a claim subject to a certain limit. The NCB gets protected at a certain point rather than dropping to zero percent when you do not have add-ons.
Return to invoice
You can avail the benefit of return to invoice for new cars as well as for the first year of the vehicle. The concept means that you can get 100% reimbursement of the car's value with no depreciation deduction in case your vehicle is damaged completely.
Cover for engine
You may have to shell out huge from the pocket to replace the expensive part of the car i.e. engine. So, you need to take a cover for your engine.
Road side assistance
You can look to get road assistance benefits from car insurers who are coming forward to provide the same to the customers. However, these benefits are provided as value-added services as an element of the basic insurance cover by some insurers.
Accident cover for car passengers
You can get the lump sum compensation to the insured passengers in the event of death or partial or permanent impairments happened during the accidents. You can get sum assured of around Rs 1 lakh under this type of add-on. However, the amount may vary across different insurers.