Importance of insurance while obtaining a Car Loan
Nowadays, Cars are no longer a symbol of luxury but they have become a symbol of necessity. Many Indians do not just desire a Car but need it. This is why many banks and financial institutions offer Loan schemes for people wanting to buy a Car.
Car Loans have a rate of interest starting from 7.25% per annum in India. The processing fees for the Loan process depend upon the Bank you apply to. The Loan tenure for Car Loans generally ranges from 1 to 8 years. The applicant for a Car Loan should be below 75 years and above 18 years of age. The applicant should be a resident of India and have a net monthly income of INR 20,000. Banks demand few documents for verification before the sanction of a Car Loan.
There are many car loans available in India. The most popular ones include:
- Bank of Baroda Car Loan
- ICICI Bank Car Loan
- HDFC Car Loan
- Bank of India Car Loan
- Kotak Mahindra Bank Car Loan
Car insurance is a very important aspect while purchasing a Car. The insurance policies opted by the borrower can help him/her cover certain damages that might happen in the future.
Given below are few advantages that Car insurance provides to the owner of the Car:
- According to certain Laws of India, Car insurance is mandatory for every car owner. This was first introduced by the vehicle act of 1988. If a person driving in India is caught without Car insurance by the concerned authority members, he/she would be obliged to pay the penalty for the same. You should always carry the car insurance policy papers along with you while driving your car.
- If by any chance, you are involved in a car accident where another vehicle, a pedestrian, or some else’s property is involved, the insurance provider would have to pay for your Healthcare bills and/or for the repair for the damage that has been caused to your Car. This can help you a lot in reducing your burden of bills in these difficult situations.
- There are several Car insurance policy options available for your help. One of them is Comprehensive Car insurance. With the help of comprehensive Car insurance, any third-party injuries/damages are covered by the insurance provider. The cost of damages, injuries, and repairs are also covered in case of natural calamities, fire, explosions, acts of terrorism, strikes, or if your car ever gets stolen. This makes the comprehensive loan policies one of the boast popular Car insurance policies in India.
- Many times, car accident survivors are faced with legal actions and procedures. Many car insurance schemes offer to cover the legal charges involved in these situations. This benefits the car accident survivor in covering all the legal fees required to be paid until the legal proceedings come to an end.
- Many insurances provide also offer the option of a personal accident cover. If not, the customers also have the option to ally for it as an add-on. If the policyholder by any chance dies during the Car accident, the policyholder’s family members would receive compensation from the insurance company. This can help the family members in ways unimaginable.
These were the reasons why it is advantageous to opt for a car insurance policy in India.
You can use a car loan EMI calculator available on several online portals to estimate the monthly repayment amount that you need to pay back to the Bank till the end of the loan tenure. The requirements for the use of these calculators include Loan Tenure, Loan amount, processing fees, rate of interest charged, This can help the people interested in Car Loans to budget out their monthly expenses properly.
Some popular car insurance offered by insurance firms in India are:
- Digital Car insurance
- Bajaj Allianz Car insuarance
- Bharti AXA Car insurance
- Kotak Mahindra Car insurance
- Liberty Car insurance
- State Bank of India Car insurance
Also read this: How Credit Card can help you during Emergency?
