What’s Comprehensive Car Insurance & Why Is It Important

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Why is Term Insurance So Important for First-Time Entrepreneurs?

Car insurance is of two types, namely third-party and comprehensive car insurance. Third-party insurance gives you a lot of protection when it comes to making good the losses you suffer post an accident related to the third-party demanding compensations for injuries and damage to property that they suffer. However, it does not offer protection to you or your car against losses occurring due to natural or man-made disasters. But a comprehensive car insurance not only includes third-party compensations but also own damage and personal accident cover for the driver. Apart from buying your car insurance from physical stores, you can also buy car insurance online. The importance of a comprehensive car insurance is summarized below:

Death or disability compensation

In case you, or the third-party member, suffer any severe injuries or even death, the insurance company will give compensation to your nominee if you have a comprehensive car insurance policy, while if you have a third-party only car insurance, the compensation will be limited to the losses suffered by the third-party post an accident, and you may feel left out high-and-dry because you will have to bear losses suffered you from your own pocket.

A comprehensive policy covers legal and financial expenses

A comprehensive car insurance policy covers the legal expenses that may arise due to an accident. The comprehensive policy has inherent in it the third-party cover, which is mandatory in India, apart from covering damages inflicted on your own vehicle. Moreover, a comprehensive car insurance policy also covers the legal and financial expenses incurred for the tribunal’s hearings of the accident cases.

Protection against theft

In case of theft of your car or any of its accessories, your comprehensive car insurance policy will make good the entire losses suffered due to the theft. Your car insurance company will provide you total compensation for losses in such a scenario by compensating you with the total insured declared value (IDV) of your car. It also takes care of the losses suffered by you in case your car is vandalized.

Protection against fires and natural calamities

Your comprehensive car insurance plan will also protect your vehicle against the damages caused by fire accidents. Though the comprehensive car insurance plan does not include mechanical defects, it does compensate you against damages caused due to fire caused by overheating of the engine. 9in this case also you will get your full IDV. Likewise, if you suffer any losses owing to natural calamities – such as earthquakes, cyclones, floods — which render your car irreparable, your insurance company will compensate you with the total IDV of your car.

As seen above, a comprehensive car insurance policy guard you in all kinds of circumstances, which is not possible with a third-party insurance. So, if you wish for an all-round cover for your car, you would be better off buying a comprehensive car insurance policy. Check out the multitude of cashless garages in the Bharti AXA network, and you will surely feel tempted to buy your car insurance from them.

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Samantha Acuna is a writer based in San Francisco, CA. Her work has been featured in The Huffington Post, Entrepreneur.com, and Yahoo Small Business.