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Car insurance is a crucial matter, and we believe that every owner should have it. Local consumers, on the other hand, do not purchase automobile insurance in Pakistan for a variety of reasons. So, in this post, we'll talk about automobile insurance, how it works in Pakistan, and how it benefits car owners. What is the mechanism behind it? What is the procedure for filing a claim following an accident or theft?
Surprisingly, Pakistan has a good automobile insurance law that requires every owner to cover their vehicle. Owners are required by law to have Third Party Insurance, which means that if other cars are damaged in an accident, including injuries, you must have insurance to cover the loss. You will be fined and perhaps punished if you do not comply. However, the law simply exists in paperwork because it has not been implemented in the country. A substantial proportion of people either do not purchase insurance or are unaware of its existence.
In Pakistan, there are primarily three forms of automobile insurance:
This insurance will cover the losses caused to a third party as a result of an accident caused by your negligence. It does not, however, cover damage to your vehicle or theft of your vehicle. This insurance will only cover damage to a third party's vehicle and injury to the other vehicle's driver/passenger. In other words, it will guard you from harm inflicted by you.
This is the best auto insurance for owners since it covers the driver, their vehicle, and any damages caused to a third party in the collision. Furthermore, this insurance protects you from a variety of perils, such as floods, riots, robbery, and fire.
This sort of insurance allows you to file a claim for incidents caused by your negligence. Then, in the event of theft, it will make it simple to replace the vehicle. Furthermore, in the event of an accident, it will cover you regardless of whether it was your fault or not. Last but not least, it is simple to use.
This is the best auto insurance for owners since it covers the driver, their vehicle, and any damages caused to a third party in the collision. Furthermore, this insurance protects you from a variety of perils, such as floods, riots, robbery, and fire.
This sort of insurance allows you to file a claim for incidents caused by your negligence. Then, in the event of theft, it will make it simple to replace the vehicle. Furthermore, in the event of an accident, it will cover you regardless of whether it was your fault or not. Last but not least, it is simple to use.
Most significantly, it is dependent on the type of insurance you have; if it is comprehensive, it will cover all of your losses. In the meanwhile, the other two forms of insurance will cover particular damages and losses. As a result, there are several situations for claiming the policy, including:
If your automobile or a portion of your car is stolen, you must take the following steps:
As previously stated, comprehensive insurance will cover both your and third-party damages. Third-party automobile insurance, on the other hand, will only cover the loss of another person if the accident is caused by your negligence. Before we get into the procedure, it's important to understand that there are two sorts of accidents: total loss (40–60 percent damage to your automobile) and partial damage (40–60 percent damage to your car).
Moving forward, in the event of a mishap:
We've used the term "depreciation" a few times before, and you might be wondering what it means. In simple terms, depreciation is the amount of money you will lose if you are involved in an accident or are robbed. If your automobile is brand new, you will pay 5% depreciation for the first six months and 10% after a year. It will continue to rise at a rate of ten percent every year, with a maximum limit of sixty percent.
To put it another way, as your automobile ages, its depreciation will increase with each passing year: the older the vehicle, the larger the depreciation.
In Pakistan, vehicle insurance does not cover: