Vehicle Insurance 2022 – How Important is it for you?

What is Vehicle Insurance in today’s article? If you have a car, such as a Car, Auto, Motor, Bike or any Vehicle, it is very important to have insurance.

Since in the event of an accident, we may have to bear the brunt of a lot of problems, it is as important to ensure the car as it is to insure ourselves.

In today’s article, we will learn about the insurance policy of cars and will also know which policy is beneficial for you.

What is Vehicle Insurance?

vehicle insurance

The vehicle insurance policy protects us from financial loss in the event of any kind of accident.

This happens by a contract between you and the insurance company.

Under which there is an agreement in which you pay the premium, and in return, the insurance company compensates you in the event of an accident.

Auto insurance provides property, liability and medical coverage as per the company agreement.

Types of Vehicle Insurance

There are two types of vehicle insurance in India, namely, Full Party Insurance and Third Party Insurance.

1. Third Party Insurance Policy

In this type of insurance, if your vehicle meets with an accident and at the time of the accident, the insurance company pays damages in case of loss of the driver of the other vehicle, vehicle, etc. While the company does not claim you or your car in any way for the breakdown. That’s why it’s called third-party insurance.

It is mandatory as per the Third Party Insurance Motor Act.

2. Standard Motor Insurance Policy

It is also known as full party insurance, in this type of insurance, the insurance company compensates for all kinds of damages such as vehicles, drivers, and people sitting in the vehicle, even the people of the other vehicle and the breakdown and loss of their car in the event of an accident.

  • Property coverage – provides money in case of any kind of accident such as theft of a car or auto or damage to the vehicle.
  • Liability coverage – pays others for their legal responsibility for physical injury or damage to property.
  • Medical coverage – pays for the cost of injuries, rehabilitation and treatment.
3. Zero Deprecation or Cashless Car Insurance

If you have a four-wheeler, cashless car insurance will be best for you. It is also known as zero deprecation car insurance.

In this type of vehicle insurance, in case of any kind of accident, you can make it in any car garages listed by the insurance company without spending a single rupee.

This process is very fast and easy. This type of insurance has many more advantages. But the premium of cashless car insurance is 20% more expensive than other insurance policies. But you also get a lot of benefits.

Cashless Car Insurance vs Standard Motor Insurance

If you have a four-wheeler, I will advise you for zero deprecation car insurance. Because in the other type of insurance policy, after an accident, you take the action of making a claim.

The company then sends the surveyor to monitor your loss, and then the keeper determines the amount of the claim. During this whole process, a lot of your time is also wasted and then you get the money for that claim. And sometimes the surveyor doesn’t send a full description of your loss so that you don’t even get the fullest of your loss.

For example, you suffered a loss of Rs 25,000 and the insurance guard feels during the inspection that anyone deficiency in your car is prior to an accident and not due to an accident. In such a situation, suppose the protector told the company only a loss of Rs 15000, then you will get only Rs 15000 as a claim. That is, along with the waste of time, the loss of money.

While after claiming cashless car insurance, you make your car in certified car garages by the insurance company, then the insurance company gives the entire amount of money it takes.

That is, the insurance company pays the expenses of the entire repair. And this process is very fast to save both your time and money.

Although this policy is a little more expensive than other policies, you also get a lot of conveniences.


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