Car insurance in today’s world is as important as life or medical insurance. It’s not an unnecessary expense, by any means, as road accidents, unfortunately, are far too common as they are unpredictable. When looking for car insurance in Pakistan, you will come across a lot of options. However, with a little bit of research about the type of insurance you need and by comparing costs of policies offered by different companies, you can find a coverage that suits your budget.
Types of Policies for Car Insurance in Pakistan
When looking for answers for how to get your car insured, you will come across the three main types of car insurances policies in Pakistan that are listed below:
- Comprehensive Car Insurance
- Third Party Only (TPO)
- Theft, Third-Party and Total Loss Insurance (3T)
Comprehensive Car Insurance
If you have applied for comprehensive car Insurance, then you can claim for accidents in which you are considered to be at fault. Claim can also be made for the accidents in which fault has not been proven like a hit and run case.
Third Party Only (TPO)
Third-party car insurance covers you if you have caused some sort of damage to someone else’s property by your vehicle. It offers you legal cover to some extent that is needed by you to be behind the wheel.
Theft, Third-Party and Total Loss Insurance (3T)
Third-Party and Total Loss Insurance (3T) insurance policy is offered by different insurance companies in Pakistan. It can be extremely useful in a vehicle theft case since it assures maximum financial protection to policy buyers. In case if you are looking to claim a replacement of your severely damaged vehicle, then this policy has also got you covered but there is a condition, the cost of the repairs required in your car should exceed its market value.
Pro Tips to Get Your Hands on the Right Insurance Policy for Your Vehicle
Now that you have learned about the three main types of policies that chiefly dominate the market of car insurance in Pakistan, you can conveniently pick one of them. Below are some tips that will help you come up with more effective decision in this concern.
- Compare quotes offered by different companies for car insurance online.
- Judge the condition of your car and required coverage before picking any of the above mentioned insurance plans.
- Checking out for discounts offered by car insurance companies in Pakistan when applying for car insurance plan can save you some extra money.
How Does Car Insurance Work in Pakistan?
Insurance companies usually charge 2-3% of the total car cost from people who buy car coverage in Pakistan. Moreover, there is a certain amount of depreciation that you have to pay when there is a need to change any of the vehicles’ part. According to a general practice, the rates of depreciation that insurance buyers have to pay on the replacement keeps getting higher with each passing year. For example, in the first year of your car insurance, you may have to pay 10% depreciation cost, however, the figure can go over 70% in the seventh year.
Documents Needed When Applying For a Car Insurance
People applying for car insurance in Pakistan need to submit a copy of their vehicle’s complete registration vehicle, Computerised National Identity Card (CNIC) and photographs of the current condition of the vehicle. The completion of all the required paperwork is quite a crucial part of the whole process in case if you don’t know how to get your car insured in Pakistan.
Ways to Cut Down Your Car Insurance Expense
With the increase in vehicle prices in Pakistan, the cost of their insurance coverage is also on the rise. Nevertheless, it may be equal to only 2-3% of the total cost of your vehicle but one thing to bear in mind is that the insurance package you have acquired needs to be renewed annually, which means it’s a recurring expense. So, here are some ways you can choose a car insurance plan that is light on your pocket and works best for you.
- Try taking care of minor repairs required in your vehicle yourself instead of asking your vehicle insurance company to foot the bill. It will effectively lower your annual car insurance expenses.
- A year without any insurance claim will make you eligible for no claim bonus, bringing down the cost of your insurance coverage renewal.
- Do your research to find a car insurance online with the lowest premium amount.
- Buy a vehicle that has an annual insurance expenses easily manageable by you. Since the rate of insurance expense is directly related to the cost of vehicle, an inexpensive car usually have a low insurance cost.
What Is Usually Not Covered in An Auto Insurance in Pakistan?
Auto Insurance Companies in Pakistan usually do not insure batteries and tyres as well as the damage caused to a vehicle because of the incident of short circuit.
Some Popular Car Insurance Companies in Pakistan
There are many trustworthy names operating in the field of auto insurance in Pakistan. Most of these auto insurance companies offer you a fast and convenient process to apply for car coverage. IGI Insurance, EFU General, Adamjee Insurance, Jubilee Insurance, and Askari Insurance Company Ltd. are some of the companies you can trust with your car coverage in Pakistan.
Take a look at the parameters given below before picking one of the insurance companies for your vehicle coverage.
Select the company that offers you:
- Quick process of applying for an insurance cover with minimum paperwork.
- 24/7 and reliable customer support
- Lowest premium on a certain amount, condition and model of car
- Swift process in settling the claim (in case of a car accident or vehicle theft)
If you need further information related to the process of applying for car insurance in Pakistan, email us at blog@zameen.com
In case you haven’t bought a car yet and are looking to apply for a car financing scheme, then we suggest before taking any decision you should first check out the on-going auto loan rates in Pakistan.To read more of our informative pieces covering different lifestyle-related matters, subscribe to Zameen Blog, Pakistan’s best lifestyle blog.
