What is Car Insurance?

Car is one of the most important and beloved item of possession for any individual. It is the one of the most important needs of an individual, after home. In simple language, Car Insurance is a contract between the Customer and the Insurance Company wherein you pay a premium for a policy that will provide protection against every comprehensible risk related to your vehicle; damage, theft, death and injury in an accident, plus liability protection in case you are sued as a result of an accident (Third Party Liability).

Car insurance is a type of financial protection that helps cover the costs associated with potential damages or losses related to your vehicle. It is a contract between you, the policyholder, and an insurance company. In exchange for paying a premium, the insurance company agrees to provide coverage for specified events or circumstances.

As per Motor Vehicle Act 1988 by Government of India any motor vehicle plying in a public place needs to be compulsorily insured against Third Party Injury and Property Damage. India is home to one of the largest automobile markets in the world. Alongside rise in the number of cars plying on the road, the events of car being involved in a mishap has also increased in recent years. Add to that, a rise in repair costs and car breakdowns has added to the woes. Also, any payment to be made towards damage to the third party due to accident, needs to be taken into account. A car insurance policy offers protection from such risks.