Learn Everything About Car Insurance
The most popular reason why people buy auto insurance is the coverage against accidental damage and third party liabilities. However, information related to car insurance in Pakistan remains scattered and outdated despite being a fast growing phenomenon in the country, leaving many scraping for answers. Many still are not convinced of the benefits of auto insurance.
It is important to understand the reasons to have such insurance and types of policies associated with it. We are here with everything you need to know about it. At the end, you will also get some important tips.
Why do you need car insurance in Pakistan?
Getting insurance is as important as buying a car in Pakistan. Reasons behind this might differ from person to person. But the common reasons are as follows.
- To abide by the law
It is not necessary to have full car protection in Pakistan. However, some laws make it necessary for car owners to have third party liability insurance that is helpful in the case of an accident.
- Financial protection
Financial protection is among the major reasons why having car insurance is beneficial in Pakistan. We all know about the traffic situation here. No one is completely safe on the roads. Financial protection gets you covered in difficult situations like accidents.
- Cover your cost of repairs and parts
In the case of damage caused by an accident, the cost of repair and parts can become a headache. However, this is not the case with the people that have car insurance as the company covers these costs as per their policy.
- Protection against car theft
Car theft is common. To help save your investment, consider getting your car insured.
Types of car insurance policies in Pakistan
There are three major types of car policies in Pakistan. Here are all three of them in detail.
- Comprehensive car insurance
- Third-party liability car insurance
- Collision car insurance
1) Comprehensive Car Insurance
As the name suggests, this type of car insurance covers all the major elements such as accidents, theft, flood, third party liability, and fire.
2) Third-party liability car insurance
In this policy, the company covers damages done to others (third party) due to your mistake / fault. It only covers damages to the others, not of those done to your vehicle.
3) Collision car insurance
This type of coverage helps pay to repair or replace your car if it’s damaged in an accident with another vehicle or object.
Benefits of car insurance
What benefits can you get by getting car insurance in Pakistan? These are some of the most important ones.
- Financial protection
- Protection against natural disasters like floods, fire, etc
- Car theft
- Peace of mind
What to consider when buying car insurance in Pakistan? Tips from experts
- Select the right policy type
- Don’t raise claim for small or minor damages to get No-Claim Bonus
- Compare all the policies available
- Keep your deductibles (amount to be paid for accidental damages) high
How to select the right company?
Follow these tips before selecting the right car insurance company.
- Compare the policy rates of different companies
- Analyze the benefits
- Look for limitations of each company
- Seek discounts
- See the reputation of company (history, time and procedure for releasing funds)
Price and benefit comparison of different car insurance policies
While there are many car insurance companies, we are here with the comparison of Adamjee car insurance, Jubilee car insurance, and TPL car insurance to help you understand their rates and benefits. Here we are comparing the rates and benefits for comprehensive car insurance for Honda City 1.5L ASPIRE (2022).