What is Auto insurance?
Getting your vehicle insured is basically known as auto insurance or also known as motor insurance.It saves you from facing unexpected losses that may occur due to some sort of accidents.Getting an auto insurance is compulsory in India .
Why Is Car Insurance compulsory In India?
when the new cars entered in the Indian market ,the demand for cars increased which also increased the number of accidents in the country .Most of the times the person who faced the accident do not have the resources to compensate for the loss .So to avoid these conflicts our government took this step and made the insurance compulsory for everyone who owns a car.
Why Should You Buy Car Insurance?
As the time changed our economy saw very tremendous changes in the income of the people and the standard of living . Nowadays people prefer their own transportation and attempts to avoid public transport.So the number of cars in the India increased and Indian government passed The Motor Vehicle Act,1988, which mandates the car insurance for everyone .
The reasons for compulsory car insurance are:-
it reduces your liability in case of accident. As insurance company pays for the loss that occurred due to accident.
Some insurance companies also compensate the hospitalisation expenses .If the reason for hospitalisation is car accident.
Car insurance also helps the person to be stress free .Free from the stress of losses that may occur due to accidents.
Comprehensive Car Insurance:
Although no one is forced to buy a comprehensive car insurance policy,but it is advisable to do so. The areas covered in this type of policy is wider ,comprehensive plan includes the following:
Comprehensive insurance provides insurance against loss to both ,the third party and the person with insurance .It pays compensation for the loss to the third party and also pays for the Damage to the insured car
It is a fact that buying a comprehensive insurance policy online costs less. From the insurer’s perspective, the low operating cost for online policy sales is passed on to the customer in the form of discounts. And other than cost benefits, online policies are easier to renew as they needs less documents as compared to offline policies.
Third-party car insurance
Third-party insurance offers protection against damages to the third-party by the insured vehicle. It covers physical injuries, damages to the vehicle, damage to the property, and death. Exclusions. Third-party insurance does not provide any compensation, if: the policy holder violates the traffic rules.
This type of insurance is relatively affordable than comprehensive insurance . Although affordability of insurance is not the matter here because the difference between the premium of these two types of insurance is not much but for those who drive a luxury car it is important to get a comprehensive insurance .
How to select best suitable policies in India
choosing an insurance policy is not difficult .You should compare different policies from different companies and then you should choose the best suitable policy for you. These are some steps that you need to follow before getting an insurance policy.
Know your needs
The first basic step is to know your needs for which you have to think about what you want and for what type of losses do you want the policy .In India companies provide two types of car insurance-
Third party insurance pays for damages to the third party only . Under third-party insurance, you do not get any cover for damage to your own vehicle.
A comprehensive insurance policy, on the other hand, covers both third-party liability and damage to your car.
So, if you are looking for a basic plan with an comparatively less premium, a third-party insurance policy plan would be an ideal choice. But, if you drive a luxury car, it is better to purchase a comprehensive cover, as it will help reduce financial liabilities in the event of an accident.
Compare the plans
Once you are sure about the type of car insurance policy you need, it is a good practice to compare the plans from different insurance companies before making any decisions.You should compare different plans according to there sum insured, inclusions and exclusion of the policy, type of add-ons offered, claim process, deductibles etc. and should make sure you are getting the best out of available policies.
Ask about the add-ons
Add-ons means what will insurance company offer you if you pay some more premium. Another important step is to know about the add-ons to your policy because plans with better add-ons can be very beneficial for the person ,if he wants to add the perks by paying some more premium he/she can do it in the future .
Check the claim process
The most important step is to check the claim process because the insurance will not be beneficial if you have to go through a very big process to get your claim. So it is better to check the claim process so that when you have the need to use it you can get it on time.
Never provide any wrong information
You should never provide the false information because at the time of compensation the insurance company will verify all the information that you submitted earlier and if that does not match with the present information your claim can get rejected. And also providing the false information for reducing the Premium is a law offense.
Be aware of the policy terms and conditions
Last but not the least, check and read the policy terms and conditions carefully and check if the terms are what was promised to you and are suitable for you or not . This is an important step to avoid complications at the time of filling claim.
Final word
Buying a car insurance policy is not as hard as it may seem. The above written steps are necessary to save yourself from problems related to policies so make sure to spend some time checking these points in your policy
Overview of some of the top Car Insurance Companies.
HDFC ERGO Car Insurance.
Edelweiss Car Insurance.
Bharti AXA Car insurance.
Digit Car Insurance.
Future Generali Car Insurance.
Reliance Car Insurance.
Bajaj Allianz Car insurance.
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