Advantages And Disadvantages Of Car Insurance 2024

Updated On: 2023-03-29

Author : Team Policybachat

Due to bulk traffic complications, car accidents are often in India. As to the national crime records bureau, there are 4,96,000 traffic accidents in 2015. These statistics reveal how we are prone to accidents. Accidental claims are costly to bear by individual solely, the best way to avoid the car and personal damage expenses are to get a car insurance policy. An insurance policy is also helpful to claim for medical costs too.

As per Motor Vehicle Act, Third Party insurance is compulsory you must purchase one whether you buy a new car or a used vehicle. You can buy a comprehensive cover as well. The type of insurance protects you against financial and legal liabilities towards a third party. On the other hand, a comprehensive insurance policy covers your vehicle against damage due to accidents, fires, theft, natural disasters, etc.

Car Insurance is mandatory by law because IRDA declared that every car owner should buy a car insurance policy. Driving around without valid car insurance is illegal in India. In case of death or bodily injury to a third party or any damage to the car, the car insurance policy provides compensation. Such type of car insurance is known as third-party insurance and it protects not only you but also other people or family members who may be driving your car.

What is the Point of Car Insurance?

Car insurance is a form of insurance that can be purchased to cover the cost of any damage or injury sustained by the driver and/or occupants of a vehicle as a result of an accident.

The point of car insurance is for protection against liability, collision and comprehensive damage, uninsured motorist coverage, and medical payments coverage. It also provides coverage for theft if their vehicle is stolen or damaged by fire, vandalism, or another natural disaster.

Importance of Car Insurance Policy:

Most people are not aware of the importance of insurance. It is a type of protection that is designed to offer coverage for unforeseen circumstances or events, no matter how they happen. It is important to mention that insurance policies are very different from one another, and their purpose can be either to cover for an event that might happen soon or one which might happen at some point in the future.

It is worth mentioning that car insurance policies provide coverage against losses related to any kind of risk, such as fire, natural disasters, theft, accidents, and many others. It is important to mention that this type of policy also offers some special protections which are designed to protect individuals from emergencies or sudden changes in their life situations.

Below are the Financial Advantages & Disadvantages of having a Car Insurance Policy Online:

A primary advantage that car insurance online offers is that it not only allows to compare and purchase a policy online but also enables customers to file claims, pay premiums, or change policy coverage over the internet. The policy details are accessible 24x7 and printouts for insurance cards and other documents can be taken out from anywhere and at any time. You no longer have to wait for the papers to be sent to you by an executive.

Online Insurance for cars helps you get honest and unbiased reviews about the insurance companies – about their reputation, customer relations, claim settlement ratio, and so on. This makes the job of choosing your insurer easier.

Car insurance India online purchase always proves to be cheaper, mainly for two reasons. Firstly you no longer need to pay commission to the agents, which is always added to the premium. Secondly, the concept of online insurance has created a highly competitive insurance market where every insurer tries to showcase lower prices in order to attract consumers.

Hence, to sum up, it can be said that car insurance online has proved to be a blessing for the car insurance industry. It has increased the consumer base for the companies by reducing the hassles of purchasing insurance, which in turn has led to the growth of interest in getting car insurance among the busy youth. On the other hand, insurance online has enabled consumers to make a good choice of their car insurance policy and also simplified the process of purchase and claim.

Advantages of Car Insurance Policy:

  • Assured for financial liability: Are you sound enough to pay for huge accidental damages? If the answer is no, then choosing the best car insurance policy is the right option to get rid of huge colossal damage costs
  • Assured of repairs and replacement: The car insurance authority analyses the severity of damage and concludes whether to repair or replace the spare parts. A car insurance policy saves your vehicle for these denoted car damages. This rainy season might cause more damage to your vehicle due to bumpy and patchy roads. This damaged road impacts the mechanical parts of your vehicle.
  • Legal Requirement: Car owner needs liability assurance for their newly owned car, having the right insurance policy protects you from legal clauses.
  • Assured for medical claims: In case of severe damage to the driver or passenger, an individual cannot bear the heavy medical expenses. Having an insurance policy assures the medical expenses are covered to support financial expenses.
  • Protects driver and passenger liability: If there is any damage to drivers and passengers in case of accidents, your insurance policy covers the damage expenses. Now you can drive on roads without any stress due to the perks involved in the car insurance policy. Never be too reckless driving in back-up with an insurance policy, there are numerous advantages of car insurance premium. Know how insurance helps you from unforeseen damages.
  • No Claim Bonus: NCB is the No claim bonus which is offered to auto insurance customers at the time of renewal if there is no claim during the previous policy period. The no-claim bonus is a form of discount offered to the customers for not making a claim in the previous policy period.
  • Personal accident cover: This personal accident cover protects you from death due to accident, permanent disability, and the maximum amount paid under the car insurance policy.
  • Budget Premiums: Opt for low premiums where the budget values will work for normal people. Go to our portal for comparing different companies and buy low premiums car insurance policies.
  • Network garages: Car Insurance companies have a large number of network garages the give services in all areas to avail repairs in case of any damage to your vehicle.
  • Third-Party Liabilities: If an accident happens and damage occurred to the third party vehicle the coverage due to the insurance policy can cover the insured vehicle for bodily injury or death of a third party can be protected from a car insurance policy.

Disadvantages of Car Insurance Policy:

People instinctively buy the car insurance policy assuming insurance protects your vehicle. But there are disadvantages of car insurance policy when you opt for the best car insurance policy online. Insurance representatives hide the specific clauses, this, in turn, reflect you at the time of claim settlement.

  • Coverage failures: The primary and major disadvantage of car insurance is that your policy does not cover the entire vehicle. Only the specific parts of the car are under damage coverage, the policyholder needs to verify hidden clauses in the document keenly before buying the policy.
  • Time taking Process: Most insurance companies take a time frame to settle the claim amount, this is the problem most the policyholders are facing.
  • hassle-free claim settlement: A motor insurance plan is mandatory to protect your vehicle from financial burden in case of any damages. Be careful in choosing auto insurance that maximizes the benefits in terms of optimum claim settlement. Check for the ratio of fair claim settlement for every insurance company and get the best insurance policy.
  • Poor Customer Support: We at PolicyBachat have a dedicated team of agents that will assist you with your claim process for the car insurance policy.
Advantages Disadvantages
Financial Liability Coverage Failures
Repairs and Replacement of Spare parts, damages, and loss of your car. Time Taking Process
Legal Requirement Hassle-free Claim Settlement
Coverage for Medical Claims Poor Customer Support
Protects driver and passenger liability
The benefit of NCB, and Personal Accident Covers
Budget Premiums and Cashless Network Garages

Conclusion: The advantages of car insurance in India are that it helps you to avoid financial loss. If you have an accident, the insurance company pays for your damages, medical expenses, and more. The disadvantages of car insurance in India are that it is expensive, and not compulsory.

However, the disadvantages do not make that much of an impact because we at PolicyBachat have the best car insurance policies and coverages that are useful for all your insurance needs and budget.

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