Car Insurance (Auto Insurance) is now compulsory for any new vehicle in India, under the Motor Vehicles Act, whether you are using it for your own personal use or any commercial purpose, your car needs to be insured with an automobile insurance company.
Just as the health insurance policies, the car insurance protects your car and the driver from any accidental or damage liabilities. With more personal vehicles on the roads, private car insurance is increasing in the auto insurance industry.
What does a car insurance mean?
Car insurance provides you with financial protection against accidents, theft or any other damage or loss, and natural or man-made calamities. It also provides you with accident coverage.
How does it work?
The auto insurance companies have tied up with different automobile companies. They give you instant premium quotes for cars, depending on the maker of your vehicle. Once you register with them, your car is insured.
How the premium is calculated?
The premium for the car is calculated on the basis of the maker of the car, its year of manufacture and the region, where it is registered. It depends on the Insured Declared Value (IDV). The premium usually rises with the rise in the price of the vehicle.
Insurance coverage
Different car insurance companies would offer different insurance coverage plans with different premiums at different geographical locations. But some of the basic insurance coverage would be:
• Loss or damage to the car due to accident, fire, burglary, lightning, external explosion, self-ignition or any malicious act.
• Third party death or injury liability, third party property, and liability towards the paid driver.
• Loss or damage to electronic devices in the car, on payment of additional premium.
How to make a claim?
The automobile insurance companies allow you to claim on the grounds of accidental, theft, or third party claims. At the time of claim, you would require to submit the following documents:
• Signed claim form
• FIR copy
• RC copy of your car
• Driving license copy
• Original estimate
• Copy of your policy
How to make a smart choice?
Before making your car policy or even renewing your car policy, you should compare quotes online and choose the best option. Every car insurance policy has pre-defined coverage and exclusion points. Some newer policies are offering special towing facility, depreciation and other value-added services. You can also make a smart choice by choosing:
• Zero Depreciation Cover, which allows you to get the original cost of any part, instead of the depreciated cost. This feature is usually offered at an extra premium.
• No Claim Bonus (NCB) allows you to get a discount, while renewing your policy if you have no claims in the previous year. This helps the insured save money on premiums too.
What are the extra benefits of a car insurance?
Apart from the usual loss and damages claims, having a car insurance helps the insured in several other ways while on the road. The insured becomes eligible for some add-on benefits like:
• Road Freebies. In the case of a stranded vehicle, you can get emergency transport service, or in the case of fuel run out or dead battery, you get assistance in re-filling your fuel or re-charging your battery. These small things on the road can bring a big difference to your life.
• In case the insurance company keeps the car for a longer period than originally intended, for servicing, the insured can claim Daily Cash Allowance for his transportation.
• Services like, ‘Return to Invoice Cover’, allows you to get the depreciated value for your insured vehicle in the case of complete loss or damage to your vehicle.
• Replacement cover service provides for new keys or locks in case you lose your car keys.
How a car insurance can ease your life?
With so many car insurance companies around us, one has to wisely pick up the best policy that balances premiums against coverage. It is easier to choose and compare online rather than visiting every insurance company physically. Some of the Websites also give us the offer to buy the policy at the same price as from the actual companies. That means, you can sit at your home and get your car insurance policy without any added price! It’s definitely a value for time and money.
