An overview of car insurance, its purpose, and the protection it offers against financial losses due to accidents, theft, or natural calamities.
Car insurance, also known as auto insurance, is a policy you purchase to protect your car or vehicle from unexpected or accidental risks. It provides financial protection against losses you might incur due to unavoidable incidents such as accidents, theft, natural disasters, or third-party liabilities. Essentially, car insurance acts as a safety net, giving you the confidence to drive without worries.
Third-party car insurance is a legal requirement under the Motor Vehicles Act, 1988 for all vehicles plying on Indian roads. This policy provides financial coverage against any legal liability caused to a third party due to an accident involving your car. Whether it’s death, injury, or significant property damage to a third party, your insurer compensates for the loss, shielding you from the financial burden.
When it comes to protecting your vehicle, comprehensive car insurance offers peace of mind by covering a wide range of risks. Unlike third-party insurance, comprehensive insurance for car provides coverage for damages to your own vehicle as well as for third-party liabilities, making it a fully inclusive option for car owners in India.
Car insurance, also known as auto insurance, is a policy you purchase to protect your car or vehicle from unexpected or accidental risks. It provides financial protection against losses you might incur due to unavoidable incidents such as accidents, theft, natural disasters, or third-party liabilities. Essentially, car insurance acts as a safety net, giving you the confidence to drive without worries.
Depreciation, in a car insurance context, refers to the reduction in the monetary value of your vehicle over time due to factors like age, wear and tear, and market conditions. When a car is brand new, its value is at its highest. However, as it ages, its value decreases due to factors like usage, age, technological advancements, and market trends.
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