Our car is no longer a luxury or a status symbol anymore. Having become an essential mode of travel and transportation, it is more of a necessity these days. Whether it is our daily travel to work or our weekend travel for leisure, whether it is to drop our kids to school or to go around for the daily errands, we invariably end up spending a reasonably important part of our daily time inside our cars.
Apart from the comfort that we expect when we sit inside our car, the most important factor that we worry about is our safety; the safety of people out on the roads and the safety of our vehicle too. In order to ensure that we always have a safe drive, it is necessary to have proper car insurance policy too.
Our need for insuring our car may be different from each other and hence in order to ensure that all the aspects are fully accounted for in the policy that’s right for us, we need to understand what all is generally covered by a comprehensive car insurance.
It is always advisable to opt for a comprehensive car insurance policy to cover your car in order to have complete protection against all unexpected and unfortunate eventualities or else you may end up just keeping your car covered and standing in the garage.
A comprehensive car insurance policy covers the following essential features:
Road Accidents: Almost all kinds of accidents that occur on the road are covered in such a policy.
Natural Disasters: If your car gets damaged due to any natural disasters like floods, earthquakes, cyclones etc. which are beyond your control, this policy covers it.
Man-made Disasters: Not just the fury of nature, disasters unscrupulously created by man like fire, terrorism, strike, theft etc. are also covered in this policy.
Personal Accident Cover: This covers any injury caused in a vehicle accident, which involves the policy holder as the owner-driver.
Third Party Injuries: Any injury caused to third parties involved in the accident of the vehicle is covered adequately in this policy.
Third Party Property Damages: Apart from the personal injury caused, if any property of the third parties involved in the accident is damaged, they are covered in this policy.
Apart from the above-mentioned essentials which are definitely covered in a comprehensive insurance policy, it is advisable to customize your policy with add-on covers that best suit your needs.
Such add-ons may cover the following scenarios, which may not be something most car insurance seekers are aware of and look for actively :
Vandalism and animal damage: This cover pays for damages due to incidents besides collisions, including vandalism and accidents with animals or damage to parked vehicle by animals.
Uninsured motorist cover: This additional cover can protect the insured and his car against uninsured drivers and hit-and-run accidents.
Underinsured motorist cover: Cases of people carrying the minimum in liability coverage to save on premium cost is quite common. This add-on cover can protect the insured in the event of an accident with a driver who does not have enough insurance to cover the costs.
Medical payments cover: The medical costs following an accident may sometimes be very expensive and hence this additional cover helps in the payment of medical costs related to a covered accident, irrespective of who is at fault.
Towing and labour charges cover: This additional cover at a very negligible premium addition can help in reimbursement of the charges paid for a tow and the labour charges involved.
Rental reimbursement cover: Some high-end policies may even have an add-on cover to pay for the rental car used by you to get around after an accident, if your car is not in a condition to be driven.
Loan gap cover: Since the value of a car can depreciate quickly, the insurance claim amount may sometimes be not enough to cover the loan balance. This additional cover may help pay off the entire loan after a total loss or theft of the vehicle.
Vintage car cover: Such additional covers provide specialized coverage designed specifically for the unique needs of vintage and classic car owners and collectors.
While owning a car is no longer a luxury, having proper car insurance is an equal necessity apart from being mandated by law. It is necessary to understand our own needs, weigh the pros and cons and take all the necessary cover to be protected against any eventualities.