Why Do You Need a Four-wheeler Insurance Policy?

The introduction of insurance policies to the world of finance has been one of the most innovative and promising solutions for financial protection. Especially when it comes to high-value assets, the need for these insurance plans becomes all the more important. So is the case with cars as well, which involves considerably big investment. The insurance market primarily offers two types of car insurance policies with varying benefits. They are:

1. Third-party coverage policies

2. Comprehensive coverage policies

You must get one of these four-wheeler insurance plans for your car to use your car on Indian roads. Wondering why? Read on.

Reasons why four-wheeler insurance is needed

In the past few years, the number of car owners in India has been increasing at a fast pace. While it is easy to purchase a car, you must also fulfil certain responsibilities that come along. These include safe driving on the road, going for periodic pollution checks, and purchasing mandatory insurance cover. Let’s look at why car owners need to protect their car with a good insurance cover:

1. Legal mandate

As most car owners would know already, the Motor Vehicles Act, 1988 mandates having at least a third-party car insurance policy to drive the car on Indian roads. You must, without a miss, get such coverage while purchasing the car itself. In totality, it keeps you away from any traffic fine or, in the worst case, imprisonment for not complying with the law.

2. Financial protection against damages

A car may sustain various external or internal damages, hindering optimal performance and needing repairs or replacement which often turn out expensive. Such damages over time can cost significantly to the owner. A capable 4 wheeler insurance policy, however, covers such expenses by allowing you to make claims against the policy’s Insured Declared Value. It covers any such damage due to accident or.

3. Third-party liability coverage

It may so happen that a car collision results in damage to a third party person or property. Such instances can create significant financial liability on the vehicle owner when pursued by the third party in court. A third-party liability cover in a four-wheeler insurance policy can make up for such liabilities, protecting the policyholder from sustaining significant losses.

4. Coverage for personal accident

Another important reason that calls for car insurance coverage is the availability of personal accident cover. It provides financial protection in case of total permanent disability of the insured. Some insurance policies also offer coverage to the co-passengers in the car as an add-on cover.

5. Covers against natural calamities and manmade acts 

Car insurance policies also cover damages sustained to the vehicle as a result of various natural calamities as well as manmade incidents causing disasters. However, these extensive benefits are available only under comprehensive coverage plans and not third-party insurance policies.

6. Extensive financial benefits with necessary add-ons

If you choose relevant add-ons along with the insurance policy, you can also be assured of widespread coverage benefits against the policy. Benefits under such add-ons include options such as depreciation waivers, loss of baggage covers, electrical and non-electrical fittings cover, windshield glass covers, and the likes. These are also well-known as riders and available under different names provided by various insurers.

7. Cashless repairs and replacement

Some of the best vehicle insurance providers also facilitate cashless claims for car component repair and/or replacement at network garages in case of damage. This allows you to have worry-free commutes without having to carry cash all the time.

Not to mention, selecting the right car insurance cover allows you to secure overall peace of mind above all the other benefits. You must, nevertheless, compare different insurance policies in the market based on the extent of coverage benefits, claim settlement ratio, easy accessibility, and policy renewal processes, and then make an informed decision.