While car loans help you get your dream vehicle, they often come with long-term financial commitments. And missing an Equated Monthly Installment (EMI) payment due to unforeseen circumstances can be stressful. This is where an EMI protector cover in car insurance comes into the picture. It ensures that if you are unable to pay your car loan EMIs due to a covered event, the insurer steps in to handle payments for a specified period.
What is an EMI protector cover?
- While not mandatory, an EMI protector is an add-on cover that acts as an extra layer of security for those relying on loans to buy their cars
- This cover helps car owners manage loan repayments in the event of a theft, accident, job loss, sudden hospitalisation, or other financial hardships.
- In such covered events, the insurer then pays a set number of EMIs, reducing the financial burden.
Why should you consider an EMI protector cover?
With rising car prices and interest rates, missing an EMI can lead to penalties and affect your credit score. Adding an EMI protector to your car insurance could be a smart decision as it could help ensure you do not lose your vehicle due to temporary financial difficulties.
Disclaimer: The information provided in this blog is for educational and informational purposes only. It may contain outdated data and information regarding the Insurance industry and products. It is advised to verify the currency and relevance of the data and information before taking any major steps. ICICI Lombard is not liable for any inaccuracies or consequences resulting from the use of this outdated information.