Is It Compulsory To Have Car Insurance?

Yes, it is compulsory to have car insurance in many countries, including the United States and India. Driving a vehicle without insurance can result in legal penalties and fines. Car insurance is mandated to ensure financial responsibility for potential damages and injuries that can arise from accidents, protecting both the vehicle owner and other parties involved on the road.

What Is Compulsory Third Party Car Insurance?

Compulsory Third Party (CTP) car insurance, also known as Third Party Liability Insurance, is a type of car insurance coverage mandated by law in many countries, including Australia. Its primary purpose is to provide financial protection to individuals who may be injured or suffer losses in a car accident involving your vehicle. CTP insurance covers the liability of the at-fault driver for injuries or fatalities sustained by third parties, such as pedestrians, passengers, or occupants of other vehicles. It ensures that those injured receive compensation for medical expenses, rehabilitation, and other related costs. CTP insurance is typically a mandatory requirement for vehicle registration and is separate from comprehensive or third-party car insurance, which covers property damage and other aspects of insurance.

Is Third Party Car Insurance Compulsory?

Yes, in many countries, including India, third-party car insurance is compulsory by law. It ensures that you are financially responsible for any damage or injury you may cause to third parties in a car accident. Failing to have valid third-party insurance can result in legal penalties.

Is it compulsory to take Zero Depth Car Insurance Online?

There is no law that says that you should take Zero Depth Car Insurance Online. But, if your car insurance policy protection is not enough, then it is a good idea to also take Zero Depth Car Insurance Online. Zero depreciation cover is an optional extra. Therefore, if you wish to include this add-on to your comprehensive car insurance policy, you have to pay a slightly higher premium. That is why zero depreciation car insurance is more expensive than a standard comprehensive cover.

What is the difference between Compulsory deductible and Voluntary Compulsory Deductible?

A deductible is the amount that a car insurance policyholder has to pay in case of a claim before the insurance policy kicks in. The insurance company is liable to pay the claim amount only if it exceeds the deductible amount. Deductible is also known as “Excess” which is the compulsory amount to be paid by the insured customer before the insurance starts paying the claim. Compulsory deductible is the amount which has to be paid by the insured at the time of claim without any exemption, this amount in car insurance could go up to Rs.2000 depending on the cubic capacity of your car. Voluntary deductible is the amount anything above the compulsory deductible, customer can opt for higher deductible amount other than the compulsory deductible which is known as Voluntary deductible. Higher the voluntary deductible, lower the premium for your car insurance.

What is Compulsory PA Cover for Owner Driver?

A compulsory PA cover is an add-on cover offered by motor/car insurance providers to the owner-driver of a car that protects him against any accidental bodily injuries, and physical disabilities.

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