Car Insurance Policy- Understanding the Basics Before Buying
Insurance now needs each and everyone to keep ourselves protected from various sources of damage may be health issues or financial issues. Nowadays the cost of everything goes high, it is very difficult to withstand any kind of damage without insurance. Insurance is a contract that is represented by a policy between an individual or entity that will receive financial protection against losses from an insurance company.
We all drive or ride our vehicle right and as it is a road so there are possibilities of occurrence of accidents some are minor some are major. There is no guarantee that no one will face any accident while driving and also there is a chance that a vehicle can be stolen from parking. For preventing this cost of damage repair of the vehicle due to these accidents can be done by buying or taking a car or bike insurance policy. Car insurance is essential because it covers all expenses due to vehicle damage or injuries to other drivers or pedestrians. According to the road traffic act 1988, All motors and vehicles must be insured against their liability to other people.
Types
There are two types of car insurance policy
Temporary car insurance
When you want to sell your old car after a short period of time or you have to buy an old car for some period of time then you realize that you want car insurance for a limited period of time like for six months so you can think about temporary car insurance. Short term car insurance will help you to cover accidental damage for that car that is not yours.
Circumstances where temporary car insurance required
When you want to sell your old car but don’t want to invest more money
When you rent a car and don’t want to pay for damages due to road accidents this is the best option.
When you are in another state or country and buy a car for a short period of time and want an insurance policy for a short period of time.
Remember one thing temporary car insurance policy may not give you full damage coverage.
Permanent insurance policy
When you have a permanent car and you forget to renew your insurance policy and know that it is mandatory to get car insurance according to law and you think the renewal of car insurance from time to time is boring work then you must think for a permanent car insurance policy instead of a temporary one.
Benefits of long term insurance policy
Increased convenience- Long term car insurance policy is hassle-free from the renewal of car insurance from time to time. If insurance lapses then the total policy coverage is lost. If you want to be free from the burden of renewal of car insurance then go for long term policies
Discounts- Many leading car insurance companies give you lots of different discounts when you buy a long term insurance policy.
Avoiding non-renewable risks- If your car is involved in a major accident and there are major replacements and repairs that have to be done and you don’t have your policy renewed then you have to bear the overall financial expenses by yourself.
Make sure that you keep safe from all issues by buying a highly effective long term insurance plan.
