Accidents are unforeseen and can happen at any time but the cost of repair can burn a big hole in your pocket. However, with car insurance, you can protect yourself from the financial loss that may result due to a damage to your vehicle due to accidents, robbery, weather events or natural disasters.
According to the recent study of the Insurance Information Bureau (IIB), only 6.5 to 7 crores of vehicles plying in India have a valid insurance plan as against 18 crores registered vehicles.
What is Car Insurance?
A car or motor insurance policy is a legal arrangement between the car owner and the insurance company in lieu of a premium. It protects the policyholder from a financial loss that he may have to bear in case of a car accident or an unfortunate incident. The damage resulting from the accident could be to your own car or to someone else’s vehicle or property, for which you are liable to make a payment. Both of these damages are within the scope of car insurance plans in India.
There are different types of car insurance plans in India with multiple additional benefits. Thus, it is important to review all the options carefully before investing in one.