What are the Risks of Not Having a Car Insurance Policy?
Car Insurance Policy
Car insurance can help you pay for damages during unforeseen events and reduce liabilities.
Carrying a valid car insurance policy and other mandatory documents while driving a car is essential.
What to consider when buying a car insurance policy?
The following factors can assist you in choosing the check vehicle insurance policy that is ideal for you.
Insured Declared Value
IDV refers to the maximum sum offered by the insurer to the insured in case of car theft or total loss.
It directly affects the premium of a vehicle insurance policy. If you increase the IDV, your premium amount will also increase.
Claim settlement ratio
CSR refers to the total claims settled by an insurer against the total number of claims received during a financial year.
While buying a car insurance policy, go for an insurer that ensures a quick claim settlement procedure and has a higher CSR.
Coverage
It is best to purchase an insurance policy that offers adequate coverage and suits your needs.
You must opt for comprehensive car insurance if you are looking for extensive coverage benefits.
Add-ons
The add-on covers offer additional coverage benefits to a policyholder on the payment of an extra premium.
You should assess your requirement carefully and select the add-on cover to boost your car insurance plan.
Some are zero depreciation cover, road assistance cover, personal accident cover, daily cash allowance, and electronic accessories cover.
Network garages
An insurer with a good number of network garages offering cashless facilities should be chosen by an insured.
When you get your car repaired at one of them, the insurance company directly settles the bills with the garage.
It ensures no upfront payment and a hassle-free car repair experience.
Exclusions
To avoid future shocks during the claim settlement process, it is vital to carefully study the policy documents and know what is not covered under the car insurance policy.
Consequences of driving without a car insurance policy
Heavy fines
Besides the Pollution Under Control or PUC certificate, driving license, and vehicle registration certificate, carrying a four-wheeler insurance policy while driving a car is essential.
If you get caught driving without an insurance policy, you will be liable to pay ₹2,000 as a fine and subject to imprisonment of 3 months.
In cases of an invalid insurance policy, car registration might get canceled.
Pay for third party damages
If your car is involved in an accident where the third party has suffered bodily injuries or other losses, you will have to pay the entire compensation from your pocket.
Here, a third-party insurance policy comes in handy, and the compensation will be borne by the insurance company irrespective of the amount.
Pay for own damages
A comprehensive car insurance policy covers a policyholder against third-party and own damages.
Without such a Bajaj Allianz car insurance policy, you will be responsible for paying the repair costs of your car.
The cost of repairing can be high in some instances and can increase your financial burden.
Legal complications
Driving without a valid insurance policy can put you in legal trouble. You may need to hire a lawyer to fulfill all the legal formalities.
Get a Bajaj Allianz insurance policy download or any other top provider to save yourself from legal liability.
In Conclusion
Investing in the right insurance policy is the best option for protecting yourself financially. You should also check vehicle insurance validity regularly as it needs to be renewed before the expiry.
Category: Car Insurance
