covers your car against risks like theft, accident, explosion etc.
You may not be driving the car you own but you should still not avoid buying a car insurance policy. Paying for insurance Premium for such a car that you don’t drive may be a pain, but there are reasons that still justify buying insurance.
Car insurance Coverage has two general elements - liability coverage and physical damage coverage. The liability coverage, also known as third party insurance is mandatory by law in India and is also known as bodily injury liability. A third party insurance coverage protects the vehicle owner from any liability arising due to damage to life and property of third party involved in the Accident caused by the owner's vehicle.
If you own a car and are not driving it, or if the car is being operated as a taxi, a third party insurance would still provide protection against any liability arising due to harm to occupants/passengers connected with the operation of the vehicle. The car owner would be covered for any loss due to death or injury (caused by your vehicle) to the vehicle's drivers or cleaners. Besides as an owner of a taxi, you are Insured against death or injury (caused by your vehicle) to the passengers.
Some people do not find it justified paying for insurance for a car that they rarely drive, but we all know an unfortunate event like accidents can happen anytime. Hence to remain at peace at all times, it is important to also buy coverage for physical damage to your car.
The physical damage coverage component includes two types of coverage - collision and comprehensive.
A collision covers would only provide insurance against damage due to an accident (collision with another vehicle, object). The comprehensive covers would provide you wide insurance coverage against physical damage arising due to reason apart from collision.
If your vehicle remains unused and parked for most part of the year, it may still make sense to go for an insurance cover. We all know that a car that is only occasionally used is all the more prone to a breakdown. In such a scenario, an insurance coverage would allow you access to toll free towing services which will help you take the car to the nearest authorized dealer. In case your car battery has drained out, whether at home office or roadside, you can call the 24*7 helpline, which would arrange for a jump start.
Apart from breakdown, there are other risks as well, that you need to be protected against. A physical damage insurance cover can protect your car from any damage due to natural calamities. We all know natural calamities like fire, explosion, lightning, earthquake, storm, floods or cyclone, frost can cause severe damage.
Besides natural calamities, there are other causes that can lead to loss, of which burglary or theft being most common. There could be an event like riot or terrorist activity or it could be an act of malice by somebody you know which can as well damage your car.
Buying insurance gives you the peace of mind which is priceless, so do not avoid buying car insurance Policy even if you do not drive the car.