Car accidents are not an unfamiliar sight in Pakistan. While many blame the lack of infrastructure or maintenance, reckless driving is also among the main culprits causing accidents. Whatever the reason may be, the consequences can be dire as lives are at risk. Just as life and health insurance cover you under these unfortunate events, car insurance is equally important to take care of your four-wheeled buddies. That said, the search for the most suitable type can be troublesome as there are different types of car insurance in Pakistan.
We have compiled a detailed guide for you to understand the types of car insurance in Pakistan and the benefits of having an insurance policy.
Benefits of Car Insurance in Pakistan
An insurance policy can save you large chunks of money in the event of an accident. Car insurance is a contract between an insurer and a policyholder. It protects you financially in the unfortunate event of an accident. However, the benefits of having car insurance don’t end there. The benefits of having car insurance are as follows:
- If you are involved in an accident that is your fault, car insurance will protect you against any financial loss. You will not have to pay for the expenses incurred due to the accident.
- Car insurance will also protect you against repair costs if your car is damaged as a result of an accident that is your fault.
- If you get injured as a result of an accident that is your fault, car insurance will protect you against medical expenses.
- If you are sued by someone after an accident that is your fault, car insurance will protect you against legal fees.
- As car insurance in Pakistan has been made mandatory by the government, it keeps you away from getting in trouble with the law
- Medical claims for injuries caused during an accident. Your policy covers the charges to support financial expenses.
- Most insurance companies offer a No claim bonus (NCB) to customers who do not claim the services during the tenure.
- Car insurance provides a fair amount of money in case of death and or permanent disability.
- Third-party liability covers damage caused to the property or vehicle of any third party
Types of Car Insurance in Pakistan
Keeping the economic condition and different classes of the country in mind, there are three main types of car insurance for you to choose from. The types of car insurance available in Pakistan are
Liability Insurance
Liability insurance is one that covers any financial losses or damages caused to the property of others due to an accident that is your fault. The coverage depends on the type of car insurance in Pakistan that you choose. It can be in the form of a single payment or an annual payment.
Liability insurance is, in fact, mandatory for you to drive your car in Pakistan. Every car owner has to have one in order to remain in compliance with the law. It is important to understand that if you are involved in an accident or if someone sues you for an accident, this type of insurance will pay off the damages and legal fees.
Third-Party Insurance
Also known as third-party, fire, and theft car insurance, it covers loss or damage to your car, injuries sustained by you and your passengers, and any loss or damage to the property of third parties. The amount of coverage for medical expenses and damage to the third party’s property varies depending on the type of car insurance you choose.
Third-party insurance is not mandatory in Pakistan, although in some situations, it is compulsory. For example, if you drive a car that is not insured, then you will be required to get third-party insurance. Similarly, if you take a car on rent or lease, the owner will ask you to get third-party insurance. Third-party insurance protects the other car owners and pedestrians from any financial losses due to your car.
Comprehensive Insurance
As the name suggests, comprehensive insurance covers all sorts of losses or damages to your car, as well as any injuries sustained by you and your passengers. It also covers any loss or damage to the property of third parties. The amount of coverage for medical expenses and damage to the third party’s property varies depending on the type of car insurance in Pakistan you choose.
Comprehensive coverage is not mandatory in Pakistan. It is a choice that you can make if you want extra protection for your car. For example, third-party insurance may not cover damage caused due to flood, earthquake, or fire. In such cases, comprehensive insurance will cover these losses as well. It means that if your car is damaged or destroyed due to any reason, comprehensive insurance will cover these losses.
These were all the types of car insurance available in Pakistan. Liability insurance is a must-have while you can get third-party and comprehensive insurance as an add-on. If you want to protect yourself and your car against accidents, then car insurance is a must.
Despite the rising costs, car insurance is essential if you want to drive your car without any worries. It is important to choose the right type of car insurance in Pakistan. Our guide should help you decide better and enhance your car-owning experience.
Stay tuned for information about car insurance policies and more.
Car insurance is mandatory for owning a vehicle. Learn all about the types of car insurance in Pakistan to decide wisely about your policy.
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