Buying your dream car is always a step towards building your assets and investments. Not only it is your pride, but a vehicle is also your property and protecting your property from any damage and accidents is what you always want. Having motor insurance ensures that safety for your car.
What is a Motor Insurance?
It is a policy purchased by the vehicle owners to protect it from any unseen and unavoidable risks. It gives you coverage against theft, damages done by accidents or to the people who get affected by the loss or mishap.
How does a motor insurance work?
When a policy is purchased, the insurer pays an annual premium to the insurance company, and it pays back for almost all the costs that the insurer would need, without spending anything from his pocket. It is an agreement between the company that provides the insurance and you. The owner pays premiums to the company and in return; the insurance company covers any damage that is caused to the car.
Types of motor insurance
In India, three basic types of motor insurance are mandatory for all the owners while buying the vehicle itself.
Car Insurance: This policy is for the private vehicle owners who want to ensure the safety of their vehicles from any risks or damages. On the timely and payment of proper premium, it could cover you from all the costs to your car without you having to dole out money from your pocket.
Two Wheeler Insurance: It is the type of motor insurance designed primarily for the two-wheeled vehicles. This insurance also provides your vehicle protection against man-made and natural damages. Two-Wheeler insurance offers a fixed cover of Rs 1lakh to its insurer.
Commercial Vehicle Insurance: This insurance covers all the vehicles that are used only for a commercial purpose. Light or heavy carrier vehicles, Passenger buses, agricultural vehicles, multi-utility vehicles, etc. are covered under this insurance. The premium of this policy is calculated by the make and model of the car, place of registration, the price of the model, etc.
Why opt for motor insurance?
Owning a car is a big life decision for an individual. Not ensuring a property like a vehicle can leave a lot of troubles if something unfortunate ever happens to it. Financially it can cost you a lot for its repairment. Other than the fact that having a motor vehicle is mandatory you should opt for it anyway so that you ensure the safety of your car from any damages or mishaps.