Vehicle Insurance – Why It Is Essential and What Are Its Long-Term Benefits?

Vehicle Insurance – Why It Is Essential and What Are Its Long-Term Benefits?

Jun 23, 2022


Vehicle Insurance – Why It Is Essential and What Are Its Long-Term Benefits?

Having a vehicle insurance policy is beneficial, especially if you're involved in an accident. Without insurance, you need to pay for any costs associated with it, including medical bills, property repair/replacement costs, and legal expenses. Auto insurance offers you the much-needed financial protection by covering your liabilities and related expenses resulting from at-fault accidents. There are two vehicle insurance policies available, a comprehensive policy and a third-party policy. Both offer various benefits in terms of coverages and endorsements.

Therefore learning about the auto insurance policies and their benefits is essential for choosing the right one.

Comprehensive Vehicle Insurance

It protects your vehicle from accidents, fire, theft, vandalism, and other natural disasters while covering third-party liability claims.

Long-Term Benefits

  • Covers Damage to Your Vehicle - Pays for repairing or replacing your damaged or lost vehicle in the event of an at-fault accident, collision, and other named perils.
  • Covers Third-Party Liabilities - Reimburses third-party bodily injury and property damage expenses resulting from an accident you caused.
  • Endorsements - You can include add-ons to extend your coverage. For example, you can customize your policy with zero depreciation coverage to compensate for the depreciated cost of spare parts.
  • No-Claim Bonus (NCB) - Helps the policyholder to get discounts on their premiums for every claim-free year. Beginning from 20%, NCB benefits can increase up to 50% for five consecutive claim-free years.

Third-Party Vehicle Insurance

It's the basic and legal auto insurance policy that only covers loss or damage you caused to a third party.

Long-Term Benefits

  • Drive Legally - With this insurance cover, you can drive legally by having the minimum coverage mandated as per the law.
  • Avoid Penalties - Driving without auto insurance will lead to hefty penalties or imprisonment. You can avoid these hassles by having car insurance coverage.
  • Accident Cover - It's an essential coverage that pays for compensation of injuries and permanent disability or death due to an accident.

Car insurance benefits outweigh the financial losses you could face by paying thousands of dollars out of pocket for an accident you cause. Review your existing auto insurance policy to determine what coverages you have, and if necessary, add endorsements to broaden your coverage, including:

  • Roadside Assistance - Pays for towing the vehicle to the repair shop, fuel delivery, winching, etc.
  • Uninsured Motorist Coverage - Protects you from accidents caused by drivers without auto insurance.
  • New Vehicle Replacement - If your car is totaled, it will pay the amount required to buy a new car of the same model.
  • Engine Protector - Covers damages to your car engine resulting from oil leaks, water ingression, engine failure, etc.
  • Consumables Cover - Pays for repairing/replacing consumables, such as engine oil, nuts, bolts, gearbox oil, lubricants, washers, etc.

Stay Covered On and Off-Road

Having the right vehicle insurance policy is crucial to protect you, your family, and your vehicle in case of accidents. Contact our insurance professionals at Bell Black Insurance today to find the right auto insurance coverage according to your needs and budget.