Thursday, April 18, 2024

Category: Insurance

Car Insurance 101: The Basics Before Buying

We’ve all heard about car insurance and that every automobile owner must have one for their cherished vehicles. But do you know just how important car insurance is? Because car insurance is made mandatory in most countries, owners spend minimum time reviewing the paperwork, presuming it to be a time-consuming matter that needs little attention.

We’re here to tell you that you should leave no space for neglect when pursuing car insurance because it can save your and your family’s lives and save other drivers on the road. So while it may seem like just another formality getting in the way of driving a car, it is much more than that.

Keep reading to know why car insurance needs your exceptional attention and how you can make smart choices when purchasing one.

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What is car insurance?

Car insurance offers financial security to those who own and operate automobiles. It pays for the expenses linked to car accident-related vehicle damage, injuries to you or others, or both. It also covers any harm or losses you might cause to someone else’s possessions or person. In most nations, car insurance is a legal requirement.

How to buy the ideal car insurance that suits your needs?

We understand that you are flooded with market options, and choosing the ideal car insurance can seem overwhelming. The tips below will help you ease the process and make a smart, cautious decision for your family and car.

  • Identify the coverage you require: Consider the types of coverage you require by taking into account elements including the cost of your car, your financial status, and your situation.
  • Compare prices: Obtain quotes from many insurance providers to evaluate costs and available coverage.
  • Take the insurance provider’s financial stability into account: Select a financially sound insurance provider because this may impact their capacity to honor claims.
  • Study the policy: Ensure you comprehend the policy’s coverage details, including any exclusions or limitations.
  • Request discounts: For things like good driving, having numerous automobiles on the same policy, and having your home and car insured by the same company, many insurance providers give discounts.

That’s it! You’re now updated with the basics of car insurance, and its buying process. With these points in mind, you’re set to purchase the best car insurance that will support your life-long and save you from fraud offers.

Car Insurance: A Sine Qua Non Of The Modern World

It is a Sunday morning- a long-awaited leisure after an arduous week of corporate hither and thither, and all you can think about is whether you have packed your golf gear or not. Your kids are having a blast at the back of your new 4×4 while your partner beside you seems pleased at this little family outing. Here’s the trouble. You have been made to tail this sedan that is driving at 20Kmps on the national highway! And when you thought he couldn’t drive worse, he proves you wrong and pulls up with no warning whatsoever. Thank goodness for your all-wheel disc brakes, you managed to avert some serious damage to life and automobile alike. But just when you felt it was all forestalled, the auto-rickshaw behind you had to whack your rear bumper. What’s done is done. At least you got insurance right? No? What a bummer!

What is Car Insurance and what is its origin?

So what is Car Insurance and why should you get it? Car Insurance or Auto Insurance is a means of protection or way of safeguarding your vehicle against physical damage or corporeal injury resulting from traffic accidents. Its provision is financial and can be further extended to cover thefts, keying, and other damages sustained due to an act of God. It must come as a surprise to know that Car Insurance was practically non-existent until the end of the FirstWorld War, even though automobiles were much more dangerous than they are today. It was in the UK, a mandatory insurance scheme for automobiles was launched that came into effect with the Road Traffic Act of 1930.

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Types of Car Insurance in the country

 It is to be noted here that the terms and conditions pertaining to the protection offered by Car Insurance can vary from country to country or even region-wise. In India, Car Insurance or Auto insurance is responsible for covering damages and liabilities to vehicles and drivers caused by accidents or acts of God. It is now mandatory for any vehicle, be it personal or commercial, to have auto insurance. To make the process seamless, all top dogs in the automobile industry have tie-ups with insurance companies. In India, Auto insurance can be categorized as the following:

  • Private Car Insurance
  • Two-wheeler Insurance
  • Commercial Insurance

Life is anything but certain. Uncertainty lingers with you like that very shadow of yours. So everything valuable in life or life itself must be secured. And your sedan or 4×4, or perhaps your very own cost-efficient vehicle, should be no exception.


What Is Car Insurance And How Much Do You Need It?

Car insurance is an agreement that exists between the insurance company and the car owner, where the car owner pays a premium and the insurance company protects the owner against financial loss caused due to damage to insurance holder’s vehicle.

The basic formula of insurance states that premium is equal to own damage minus no claim bonus to which the liability premium is added.  In India, this is fixed by the Insurance Regulatory and Development Authority.

Most people often ponder over the idea “Do we really need car insurance?” when they have been paying regular premiums without making any claims. They end up claiming car insurance as a financial burden, and choose to avoid it. BUT, can one guarantee that, they will never encounter an unfortunate incident?  Even if one claims to be a safe rider, what is the assurance that everyone else is also a safe rider?

Car insurance not only pays for damages, but also reduces one’s legal and financial liabilities. It also pays for the car owner’s treatment. So, the pros of having insurance outweigh the cons, massively.

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Currently the main types of car insurance available in India are:

1) Third party car insurance policy which is mandatory in India.

2) The standalone Own Damage cover, which is introduced recently by the IRDAI. It protects the insured vehicle against theft, fire etc.

3) Comprehensive car insurance which covers both third party and personal damages

2) Comprehensive car insurance which covers both third party and personal damages

SO, how to obtain car insurance without any hassle?

Getting insured is very easy now, as one can obtain it by performing few simple steps and is done online. Firstly,decide the type of policy you want by comparing the policies online. You may choose from one of the two types that are available, that is either third party or comprehensive policy.A comprehensive policy allows you to choose the various add-ons such as engine protection cover, roadside assistance cover, . Now you have to select a reputed insurer for which you may focus on the market reputation, claim filling process, the benefits etc. Now after you have made your policy, check the policy document, make the payment and obtain a copy of your policy.

Hence, having car insurance reduces financial uncertainty and also makes loss manageable, and reduces liability.