More about Car insuranceCar insurance is compulsory because of the safety that comes with it. However, many times, the insurer isn’t clear about what is included in the insurance cover and what isn’t. So, this blog will provide you with the clarity that you’ve been seeking for long.
What all is covered in Car Insurance?
The following clauses are always included in the contract of Car Insurance:
1. Accidents
- All types of Insurances have clauses that take care of your car after damages have been caused to it due to an accident. An accident can occur to anyone’s negligence or carelessness. Accidents could range from a mere scratch to devastating damages.
2. Fire
- A car could catch fire resulting from self-ignition, explosion and/or lightning. Car Insurances cover these damages too.
3. Theft
- In case of an unfortunate situation that your car has been stolen, then you don’t have to panic. Instead, you can file a claim and the insurance company will pay you for your car’s Insured Value.
4. Calamities
- Both of the calamities, natural and man-made can create haphazard situations. But the insurance contracts provide coverage of damages caused to your car because of an earthquake, riots, etc.
5. Third-Party Losses
- Car accidents more often than not result in injuries and sometimes end up taking the life of one or more people involved. Sometimes, it also damages property. In this scenario, insurance will cover damages related to third-party losses.
6. Car Owner Cover
- Apart from covering third-party losses and damages caused to the car, insurance also provides death and disability cover for the car owner.
What all is not covered in Car Insurance?
1. Illegal Driving
- In case of any scenario which violates the norms of driving, the insurance company isn’t liable to pay any compensation. A person driving without a valid driving license or under the influence of alcohol and/or other illegal substances, then no claims can be made.
2. Non – Accidental Damage
- No insurance policy covers wear & tear, breakdowns, failures and deductibles. Also, a major clause states that any consequential damages or liabilities that arise due to car accidents will not be covered.
3. Tyres, Tubes & Engine
- Damages caused due to the improper condition of tyres, tubes and engine is not covered unless they are damaged due to an accident.
Why should I buy Car Insurance?
Even after a lot of insurance policies don’t cover a lot of situations, even then it is essential to have Car Insurance. It is because:
- Most of the insurance companies provide complementary services of car registration to policyholders. If you want to do it on your own, then it is a tedious task.
- In case your car is stolen, the entire loss is on you. No reimbursement can be claimed. Obviously, any loss can’t be undone but it can be mitigated.
- Many of Car Insurances in UAE also covers the damage or loss that occurs due to the accidental collision of a car with another car, animal or any objects like buildings or pillars.
- Any loss caused due to natural calamities or man-made calamities is also covered.
