Car insurance is like a special promise you make to a company. You often pay them a certain amount of money, called a “premium.” In exchange, if your car is hit, stolen, or damaged in some way, the insurance company helps pay for the repair or replacement of your car. It’s like a safety net that will catch you if something goes wrong with your car.
Why is car insurance necessary?
- Accidents can happen at any time: Thousands of cars ply the roads every day. A small mistake can lead to a major accident. Then it can be very difficult to recover the damage to your car. But if you have insurance, the insurance company will bear the cost.
- Legal obligations: To drive a car on the road in Bangladesh, it is mandatory to have at least “third party insurance” (Road Transport Act, 2018). If you do not have it, you may be fined.
- Protection in case of major losses like theft and fire: Even if your car is stolen or burned in a fire, insurance will be by your side. In such a situation, without spending money yourself, you can overcome the loss through insurance.
- Peace of mind: You don’t have to be tense all the time—“What if something happens, how will I handle it?” Car insurance eliminates this worry from you.
Importance of Car Insurance in Bangladesh
The rate of road accidents in Bangladesh is very high. According to the Bangladesh Road Transport Authority (BRTA), about 4,000+ road accidents occur every year and thousands of vehicles are damaged. But if you have insurance, you do not have to bear the burden of this damage alone. The insurance company helps you.
Example: My uncle from Rajshahi, a private car driver, met with a minor accident in 2024. The front part of his car was severely damaged. It cost about 1 lakh taka to fix the car. But since he had comprehensive insurance, the insurance company covered almost the entire cost.
What documents are required for car insurance
If you want to get car insurance, you must submit some important documents. Without these documents, the insurance company will usually not give you any policy. Because, through these documents, it is proved that you are the owner of your car and you are eligible to get insurance according to the law.
Benefits of buying car insurance online
1. Time saving
→ You can buy insurance at home without going to the office.
2. 24/7 service
→ You can get insurance even at midnight!
3. Easy document upload
→ You can take a picture with your mobile and upload it directly.
4. Opportunity to compare prices
→ View offers from multiple companies at once, choose the best offer.
5. Digital documents
→ No fear of getting lost. All your documents will be protected in your online profile.
Popular Online Car Insurance Companies in Bangladesh
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What factors should be considered when choosing an insurance company?
The following are important factors to consider when choosing an insurance company so that you can get the right service and protection:
Things to consider when choosing an insurance company
1- Company reputation and credibility
- How long has the company been in business?
- What is their customer base and rating like?
- Check for good reviews and reputation.
2- Claim settlement rate and time
- How quickly and successfully does the company complete the claim process?
- Read user reviews about the online claim experience.
3- Coverage options and benefits
- What policies do they offer, third party, comprehensive or total loss?
- Clearly know what types of damage or accidents will be covered by the insurance.
4- Premium rates and financial benefits
- Is the premium amount relatively affordable?
- Check if there are any additional or hidden charges.
5- Service delivery process and customer support
- Does the company’s customer service provide 24/7 support?
- Can you contact them quickly in times of emergency?
6- Digital support and mobile apps
- Is there online claim, renewal and tracking facilities?
- Is the mobile app or website easy to use?
7- Regulatory approval
- It is important to check whether the insurance company is approved by the Bangladesh Insurance Development and Regulatory Authority (IDRA).
8- Transparency of communication and terms of the contract
- Read the policy document carefully to make sure it is clear, easy to understand, and detailed.
