Author: Prajakta Ambre
Source: articlesbase.com
The Indian automobile market is a buyers’ market with various options to choose from the competitive car prices. The number of cars on the roads has increased the number of minor mishaps and major road accidents. After an accident, you are responsible to make sure that the affected people involved are compensated for the damage to their cars and receive medical treatment if needed. If the situation cannot be sorted out peacefully, there may be legal problems to deal with. Your misfortune worsens if your own car is damaged and needs repairs to even resume normal functioning. Car prices are lacks of rupees and even minor repairs to cars costs tens of thousands. Many people buy cars by taking loans and such additional costs may place severe stress on the loan repayment ability and schedule of the car owner. However, the costs associated with the accident can be compensated to you if you have car insurance. Car insurance costs a few thousands and depends on car prices. It needs to be paid just once a year and provides you coverage throughout the year. While third-party coverage is available to compensate the costs arising to the other person in an accident, it is suggested that you have comprehensive coverage. Comprehensive coverage protects you against the risk of property damage, legal liability, natural calamities, man-made calamities and the costs of treating injury. Even in case of a theft, your car is replaced at the cost of the car insurance company. In the longer run, this saves a lot of costs from adding up to car prices and prevents increasing of the ownership costs of cars. Car insurance premiums range from 4% to 5% of car prices. But they do not remain the same each year. They vary as car prices of the insured cars depreciate over the years. Also, you have an opportunity to get your car insurance premium reduced each successive year, by an amount of 20% to 50%.