Driving in India without minimum auto insurance is illegal. In the event of death or bodily injury to a third party, or damage to the person’s property, the insurance service provider offers compensation up to a certain limit. This type of insurance shields you from liability to a third party, whether it is you, a driver, or relative driving the car.
Comprehensive insurance coverage provides not only third party coverage, but also protects your vehicle from losses that can occur as a result of damage or theft. Such plans offer protection to car owners against the possibility of losses that arise because of theft of the vehicle, or damage on account of manmade or natural disasters and accidents.
There are several benefits of availing car insurance. Such coverage prevents you from having to incur huge expenses for repair or compensation, which could otherwise leave you financially crippled. Some specific situations in which insurance coverage can help include:
- Offers benefits to the survivors in case of loss of life from an accident
- Provides cover for lawsuits, which includes legal fees you may have to pay when you are charged
- Reimburses some or all of the repair and replacement costs incurred because of accidental damage
- Provides coverage against damage and loss arising due to causes other than accidents like theft, riots, and fire
- Most car insurance plans allow discounts on the premium amount for theft or for procuring multiple policies from the same service provider. This also includes additional benefits for extended coverage to other people who drive your vehicle with your permission
- Vehicle owners who do not make any claims during the policy period can enjoy lower premiums at the time of renewal by utilizing their no-claims bonus (Owners are advised to check the policy document and understand the terms and conditions relate to this bonus)
Before you buy a car insurance policy, spend some time researching and comparing different options. The Car Shield plan, from Royal Sundaram, offers some exciting benefits to policyholders. You can find all of this information online and can even make the purchase on their website.