Categories: business services

Why Do We Need Car Insurance?

The ultimate target of purchasing a vehicle is to avail its maximum benefits in a long run. Buying a car and ensuring its engine related maintenance is a scant approach for protecting your car. Your car needs a lot more protection in an event of accident or theft than just its engine. According to Motor Vehicle Act, 1988, it is mandatory to buy a Third Party insurance along with the car, which insures the third person’s vehicle damage/ death/ injury caused by you and not to ‘you’. A comprehensive insurance policy is better than standalone third party cover. Comprehensive insurance policy c protects your own car from damage and also provide third party coverage.

So it is crucial to have comprehensive insurance for the car. Paying a modicum over premium will aid you on a rainy day. Once you have decided to buy comprehensive insurance for your motor the next question is where to buy one?

Where to get a car insurance?

There are different means to buy car insurance online.

The ancient way of obtaining car insurance is through agents. Every insurance provider has a set of agents working for them. They have extensive knowledge and a good understanding of the different insurance policies and the procedure to claim them. They will assist you over the best insurance policy best suited for your purpose.

Some insurance providers are in liaison with the car dealers. Usually, the car dealers will provide you with the Third party and comprehensive insurance plans. However, they are of a little help because the dealers have zero or minimum knowledge about the insurance policies provided by the insurance provider.

Brokers employed under the Insurance Regulatory and Development Authority of India (IRDAI) is authorized to sell policies from various insurance providers. Alike agents, brokers also have extensive knowledge about the insurance policies provided by various insurance providers. Here you can compare insurance policies of available insurance providers and chose the one that best suits your purpose. They also assist with the claim settlements.

Avant-grade and less paperwork – an uncomplicated method is to buy car insurance online. This saves time and initial cost. Complete details about the policy and the procedure to claim are provided, ensuring transparency. You can compare the viable car insurance policies online of various insurance providers using insurance aggregator websites like Coverfox.com.

Car Insurance and everything you need to know

It is important to have car insurance in India; one because it is mandatory according to the Motor Vehicle Insurance Act; two because it will protect your vehicle in an event of accident or loss / theft. Besides car insurance also provides personal accident cover to the owner or driver and covers any liability to third parties involved in the accident. There are different car insurance policies available in India covering specific damages. It is important to thoroughly understand the terms and conditions of car insurance and the damages they cover. On the whole car insurance policy covers the damages suffered by your vehicle due to natural disaster and mishaps caused by humans.

It is also important to understand what a comprehensive policy does not cover. The policy does not cover ageing wear and tear, breakdown due to mechanical / electrical problems, damages caused under intoxication and damages caused while driving without a valid driving licence.

All-inclusive insurance policy also protects the driver and the passengers (if the number of permissible passengers in the vehicle is legal as specified by the vehicle manufacturer) in case of an accident. Most policies come up with add-on protection for the peripheral components of the vehicle, mainly the engine. The comprehensive policy does not cover engine damages. Installing an anti-theft device in your car not only protects the vehicle but also helps to cut down on the premium amount. Also a membership with the AAI also brings down your premium amount.

Choosing the right car insurance is very important. The first step is to get complete information about the claim settlement procedure and calculate the claim settlement ratio i.e, to verify the number of claims received by the insurance provider to the number of claims fully settled by them. It is important to understand the terminologies such as Insured declared value (IDV), zero depreciation and no claim bonus.

While buying an insurance policy, we would want to have the best all-inclusive, adds-on policy at a nominal price. To achieve this you can compare and get quotes for your vehicle from various insurance providers. It is important to reach out to a customer friendly insurance provider. In the age of social networking, it is easy to perform a thorough check of the insurance providers by reading reviews and getting feedback from fellow customers.

According to the Vehicle Motor Act, 1988 having car insurance is a legal requirement. Having car insurance will help you to get your car fixed after a mishap, even though the policyholder is responsible for it.

 

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