I have seen people feeling offended when they are told that it is compulsory for them to buy car insurance if they own a car. Many car owners perceive that if they choose to buy car insurance it signals that they are not confident about their own skills as a driver. What car owners need to realize here is that accidents are unfortunate events and can happen to the most skilled person in the art. It need not necessarily be the mistake of the driver and could be an outcome of a suddenly falling tree or another car crossing the divider and colliding with your car.
There are two parts of a car insurance Policy
– a third party insurance cover and an own damage cover. It is compulsory for car owners to purchase the third party liability cover, while they can skip the own damage cover if they wish. But I would not suggest even the best of drivers to skip buying own damage cover.
Accidents don’t tell you when they are going to happen and hence if you own a Comprehensive insurance
policy you can drive with peace of mind. If you are truly a good driver, insurance companies have a mechanism to reward you for your safe driving skills. They provide a no-claim Bonus
to car owners in case they do not file a Claim
and the bonus increases progressively with every successive consecutive year of no-claim.
Car owners confident in their driving skills can also seek to lower their insurance Premium
by opting for voluntary deductible. A voluntary Deductible
is the amount that you agree to pay for repairs above the compulsory deductible when you file an insurance claim.