Advantages of Car Insurance : Top 10 Benefits of Car Insurance

advantages of car insurance

The advantages of car insurance are discussed here in this article. So, that you can know about the benefits of buying car insurance for your car. We all wish to have luxuries in life. For someone, having luxury might mean being able to live in a castle like house, for another it might be jewellery and for someone else it might being able to travel. Cars can be counted as luxury items as well as necessary items. Due to the diversity we have today, cars can be categorised as the types mentioned before. There are cars which provide extreme comfort and style, that can be used a means to show your power and authority. However, there are also cars that are simple and fulfil the needs of traveling from one place to another. They provide you the advantage of a safe, comfortable and affordable ride. 

However just like every expensive jewelry piece that we own are kept in safes, we need a means to protect our cars as well. They are valuable assets for us that make our lives much more easier. Mostly every family owns a car, whether it is blue, red, black or silver in color. The car might be a sedan or a SUV, it might be big or small but that doesn’t undermine the benefits it provides us with.

Top 10 Advantages of Car Insurance

Keeping in mind how valuable our car is for us, here areĀ 10 Advantages of Car Insurance:

1. Worry

Endlessly worrying about uncertainties in life keep us occupied. We never know what tomorrow will bring, it could be a day that is joyous and become a happy memory to reminisce about or it could be a thing which mades you sad everytime you remember it. We cannot predict the future but that doesn’t mean we cannot be prepared for it. We always keep a back up option when choosing a career or while buying a house. This thought keeps us at peace knowing that even if one option fails we can rely on the other one. Similarly, having a car insurance can free you of your worries. It lets you be at peace knowing that any future damage or harm to your vehicle is covered for.

2. Law enforcement

As a citizen of a country we enjoy various rights, the right to speech, the right to expression and many more. As we enjoy these rights, we also have duties. As a good citizen, it is important that we abide by the laws that are present in our constitution and live our daily lives without breaking them. Just like the traffic system has its laws which tells us to stop at a red light, drive only when we have a valid driver’s license and be of legal age before doing so. Similarly, we have car laws. Under the Motor Act of 1998, a driver must only move onto the road if he has properly registered his vehicle, has a driver’s license and has a insurance cover for the vehicle. This is compulsory for all citizens who own vehicles.

Read Also: Benefits of buying a new Car

3. Medical Costs

Even when we get a stomach infection, the doctor recommends us to take a couple to tests including blood test, etc. In this manner, the doctor is able to make a huge bill at the end including the medicines required for the treatment. With technological advancements happening around the world, treatment of various diseases and health issues is becoming easier. Still the costs haven’t gone down. Due to the presence of the private sector, the medicines and healthcare continues to be a form of business where medicines are sold with the intention of making money rather than curing people. Adding to that a car accident can cause unexpected expenditure. At times, they even lead in severe damages to the human body. The car insurance helps you cover these medical costs in case you fall victim to an accident.

4. Third party

We are are continuously required to take responsibility for our actions. Although life doesn’t always equate to forces and momentum but we are required to act according to what situation life puts us in. When a person gets into an accident, it is evident that he might suffer injuries but the other person (with whom the accident occurred) might be injured as well. If the first person is at fault then it is clear that he has to take responsibility of the medical costs for the second person, both morally and legally. When we are faced with such obligations, it might to be tough to suddenly come up with a huge sum of money to pay for those expenses. Car Insurance comes to your rescue at times like these. With a ‘third party policy’ you can also cover the medical expenses of the third party incase the accident occurred due to the fault of the insurer.

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5. Comprehensive Type

When the word Car Insurance comes to mind, it may bring the idea of an insurance that backs you up if you were in a car accident. However that is not the case. There are various other types as well that give you other benefits. Such as the comprehensive type insurance policy, it provides you with repair costs incase you fall prey to a problem other than an accident. This insurance is invalid in case you have an accident, you are not reimbursed for any loss in that case.

benefits of car insurance

6. Theft

Just like shiny diamond and gold bracelets tempt robbers, any other object which holds monetary value is valuable to them as well. Cars can be a huge expense. Although, there is a wide range and models to choose from, they still cost a huge sum. Many cars are built with anti theft measures such as an alarm like sound which starts incase the car is tried to open without a proper key. However the possibility of a theft is always there, not only do people try to steal cars but also the things you have in it. Many a times robbers are attracted to things that are present in car, for example you may have left your phone and other devices in the back seat while you went out to shop. That is like an invitation to the robbers. They might break your glass and take away your belongings. If you just spent a huge sum and bought a new car and it got stolen then it would feel like a huge irreparable loss. However car insurance helps you provide money incase such an incident happens.

Read Also: Benefits of buying a used Car

7. Fire

Fire is a strong symbol. It shows energy and power and at the same time it symbolises destruction and damage. Fire can cause serious harm to any place. The Amazon fire and the bush fires in Australia have left a deep impact on our minds and on the planet. It caused damage to not only the wildlife but also to property. These examples are enough to show us that fires can cause serious damage. A person may lose a lot of his assets if faced with such a situation. In such a case, if you have an insurance it can provide you with the damage costs. You don’t need to worry about losing another asset such as your car.

8. Natural Hazards

Man has been working continuously for many years to come up with devices and technology which will be able to predict natural hazards. We know that animals have a very sensitive composition and they are prone to feel incoming dangers. However humans haven’t been able to detect all types of disasters with a 100% accuracy. Such researchs are being done to not only save life from being lost but also to protect our environment and homes. When an earth quake occurs, it can cause a huge amount of damage depending upon the magnitude. An earthquake of a magnitude more than 6 is considered to be strong, major and great which can bring serious harm to life and property. In such a case the loss of assets can bring more financial trouble to a person since they again need to purchase or repair those things. In such cases as well car insurance can help you.

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9. Add-ons

Apart from the repair costs and medical expenses you can get other benefits from car insurance. You can get these if you have add ons. An add-on can cater to a lot of your needs such as theft or loss of keys. Incase you have lost your keys and you go to make a new set, then the cost bourne by you while getting a new pair by paying the lock smith will be paid by the insurance company. Add-ons also protect your engine and tyres. They might undergo damage due to wear and tear which will also be covered. Even if your car is regarded as tolated, that is, it can no longer be repaired and used, then too you will get a certain amount against your insurance.

10. Zero Depreciation

Everything loses its value after some time. Especially if we talk in regards to objects, they lose their value with time. Technology keeps changing, we have a new processor, camera, application coming up every day and month. Also the amount also depends on the usage, when you wear the same clothes again and again they can get worn out. If you were to resell the same cloth then you will not get the same amount that you paid for while you bought it. Similarly when people apply for claims for repairs of car parts, they don’t get the same amount. Tyres, engine, etc also undergo depreciation with time. You get a certain amount less than the desired depending on how many years have passed since the purchase as well as the type of part you wish to replace or repair. However, you don’t need to do so with the Zero Depreciation cover. You must take it as an extra to avail this benefit.

Just like we take our time deciding which clothes to buy so that we look our best in them, it is important that we make our investment decisions wisely as well.

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