What Are The Benefits Offered By A Car Insurance Policy?

Having the luxurious four-wheeler is certainly a pleasure because you will be able to enjoy a fabulous ride, one that enables you to enjoy travelling long distance with your family. However you should also be prepared to face unexpected situations that can arise when driving. This is where your car insurance policy comes into the focus. It helps cope with so many different circumstances when you have to pay for repair expenses which can unnecessarily put a dent in your finances. It has a wide range of benefits that comes to your aid like nothing else when you are faced with vehicle damage or worse problems.

How Does Car Insurance Protect You From Risks?

If you want to spend minimally on the car policy it is best to opt for a basic policy. What kind of benefits does it offer? It gives you protection against the risk of damage to vehicle, which is the main cause of expenses. Damage can happen due to man-made or natural disasters. It can happen during an accident. In such situations, repair expenses will be very high and you would have to spend a lot from your savings account. With the policy's coverage you can bring them down. Another key cover offered by a basic car policy is third party liability. When your vehicle damages another property or vehicle in an accident, the result is third party expenses. This can also arise when your vehicle causes injury to the driver of the other vehicle. Such expenses are heavy but through the policy's compensation they can be reduced. Third party car insurance is an important coverage that helps minimize so many expenses. A basic policy also pays out in the event of a personal accident which results in loss of life or permanent disability to the driver. In such a situation, the unbearable loss is compensated through a lump sum from the policy.


Many people find basic policy not enough to meet the kind of risks posed by today's roads. What if your car breaks down in the middle of the road and had to be towed to the nearest garage? What will you do in the event of medical expenses arising from an accident? These risks are covered through add-ons.

Cost Of Premium

The cost of a basic policy is less, so you can easily afford it. As you choose add-ons, the policy cost will increase. You can reduce premium costs by making use of the no claim bonus at the time of renewal. You can also reduce it by fitting an ARAI approved anti-theft device in the vehicle.

Policy Transfer

Situations can arise wherein you will have to transfer your policy. If you sell your car, existing policy can be transferred to the new vehicle.

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About the Author

Kirti Saxena

Kirti Saxena is a web enthusiast and a writer for different areas including insurance and banking and numerous other sectors.