Source: Graana.com
Car snatching or car theft is a major problem for citizens of Pakistan. Over the past few years, there has been a rise in such incidents as the market in Balochistan, and remote parts of Sindh have a great demand for such vehicles (as well as stolen car parts). Markets in such areas purchase and sell the stolen vehicles at lower rates.
In most cases, car owners have to fight for a long period to recover their assets through the police or related departments. Another major problem that most vehicle owners face is road accidents. These can cost a lot of money in the form of repairs.
A feasible solution to such problems is vehicle insurance. Vehicle owners cannot only claim the amount of the lost vehicle but can also claim the money for repairs in case of an accident.
Graana.com, Pakistan’s smartest property portal, has compiled a guide to help you understand rates, policies, and types of car insurance in Pakistan.
Car insurance is essentially an agreement between an insurance company and a car owner, according to which the company provides protection against financial losses resulting from any accident or damage to the vehicle in exchange for a premium that the car owner pays at the time of purchase.
Car insurance comes in several types according to the plan chosen by the vehicle owners. Most insurances cover:
The automobile industry in Pakistan is thriving. People are getting more cars, however, make sure you insure your car against any calamity. Auto insurance in Pakistan follows a set pattern that is mostly based on the policies of the insurance companies and other legal authorities involved. Most top insurance companies in Pakistan charge 2-3% of the total cost of the vehicle.
Moreover, each time an accident occurs, or any part of the car needs to be replaced; the owner has to pay some depreciation costs. According to standard practices, the depreciation cost increases every year. Factors such as the auto market, the economy of the country, and the inflation rate also affect the depreciation cost. So, the owners must keep track of these aspects.
The following are three different types of car insurance policies offered by most insurance companies:
Let’s discuss these policies in detail.
Comprehensive car insurance covers everything from the cost of damage to any injuries and damages to a third-party vehicle. The insurance company covers damages to the vehicle under any circumstances. For example, if you have an imported car in Pakistan, you can go for this insurance.
Comprehensive car insurance offers the highest level of protection. The following are some of its benefits:
Third-party liability car insurance covers the cost of damages or injuries to a third-party vehicle or person in cases where you are involved in an accident. It is the lowest level of cover that a person can take for financial security.
Usually the best fuel average cars in Pakistan last long. However, we still recommend you sign up for car insurance. Collision car insurance covers the costs of damages to your vehicle in case you have an accident. However, Pakistan’s collision car insurance policies usually do not cover damages to vehicles in case of natural disasters or any other extreme weather conditions.
The following aspects are not covered in this policy:
This policy works in the form of deduction, which means the amount you have paid initially for your vehicle’s insurance is used to cover all the damages.
The importance of property insurance is increasing day by day. Like property insurance, one needs to work on the insurance of other assets as well, such as Car insurance. Most people look for relatively cheaper insurance policies that offer greater returns. However, during the last few months, car insurance rates have gone sky-high due to rising inflation. Moreover, changing supply chains and increasing rates of road accidents have also caused insurance rates to rise.
Hence, while choosing a car insurance company in Pakistan, you must keep the following factors in mind:
Applying for car insurance in Pakistan generally requires the following documents:
When you are about to apply for car insurance, you must go through all the documents, terms and conditions first. It will give you an idea of what is covered in your insurance policy and what is not.
You can follow the given procedure to claim your insurance:
In Pakistan, insurance companies usually follow two methods for insurance reimbursements:
Pakistan has several reputable auto insurance companies that provide excellent services. These companies have simple procedures and require little documentation.
For information about car insurance in Pakistan, visit Graana Blog.
There are several reputable car insurance providers in Pakistan, and determining which one is the best depends on your specific needs and preferences. Some well-known insurance companies in Pakistan include Adamjee Insurance, Jubilee General Insurance, TPL Direct Insurance, and EFU General Insurance.
The cost of insurance in Pakistan varies based on several factors, including the type of coverage, the value of the car, the driver’s age and driving history, and the insurance company. Premiums can range from a few thousand rupees to tens of thousands of rupees per year.
Car insurance is not legally required in Pakistan, but it is highly recommended. Having car insurance provides financial protection in case of accidents, theft, or damage to your vehicle. It can help cover the costs of repairs or replacement, medical expenses, and liability claims.
Yes, you can get car insurance in Pakistan. Many insurance companies offer different types of car insurance policies, including comprehensive insurance, third-party liability insurance, and additional coverage options. It is advisable to research and compare insurance providers to find a policy that suits your needs and offers a good balance of coverage and affordability.
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