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Motor Insurance Protection: All You Need to Know

The number of cars plying the Indian roads is increasing day by day. With that, the motor insurance market is also witnessing immense growth in India. Regulations dictate that car insurance is mandatory in our country.

Your motor insurance policy is based on the IDV- Insured Declared Value, the amount is equal to the market value of your vehicle. Initially, when you buy new motor insurance, the IDV is calculated on the showroom price of your vehicle. However, IDV is never constant. During the time of vehicle insurance renewal, the IDV decreases because of the rate of depreciation. Also, make sure to complete motor insurance renewal before the stipulated amount of time, known as the grace period, to avoid paying penalties.

Motor Insurance Policies

Motor insurance policies are available in the form of third-party liability insurance and comprehensive insurance. Both have their own set of pros and cons. A brief study of these two types will help you choose the ideal one.

Third-party liability insurance

This insurance policy covers accidental damages inflicted to a third-party during an accident. Third party insurance has limited coverage because it does not provide any protection against personal injuries or the damages sustained to one’s own vehicle. Third-party liability insurance is mandatory in India for all the vehicles irrespective of their type or model. One of the advantages of the third-party insurance policy is that it is an affordable option.

Comprehensive insurance

As the name implies, the comprehensive insurance policy provides complete protection against most kinds of threat. A comprehensive insurance policy provides coverage against both third-party liability and own vehicle damages. In addition, it provides protection against theft, damages due to natural calamities, damages incurred due to man-made disasters, personal injuries, etc. Comprehensive motor insurance coverage can be the best choice for your vehicle if safety and security are your top priority.

Add-Ons

You can extend your motor insurance coverage by opting for add-ons. Add-ons increase the financial coverage but an additional premium amount will be added to the base premium amount. Some of the general add-ons available with car insurance are:

Zero depreciation cover: An insurance company deducts a certain amount as the depreciation from the sum insured. However, if you opt for zero depreciation cover, the insurance company will pay the original value during the replacement of damaged vehicle parts in case of a mishap.

Key replacement cover: If the key of your vehicle is misplaced, you can claim for reimbursement. With this add-on cover, the insurer provides a part of the cost incurred for the substitution of the key.

Engine and electronic circuits cover: One can claim for reimbursement with this add-on cover for the damage caused due to engine failure or electronic circuits.

Roadside assistance cover: In case your vehicle breaks down while travelling through remote locations, you can call for assistance with roadside assistance cover. Other assistance includes arranging for fuel or mechanic in case of any problem while travelling.

Since add-ons will increase your premium, add the necessary ones and calculate your premium using the online motor insurance calculator.

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Questions To Ask Yourself Before Buying Car insurance

Having a car insurance will definitely give the car owner many benefits. No matter what vehicle you buy, it must be covered by at least the minimum car insurance. Most people take their friend’s advice or advice from any relative etc. before buying a car insurance and later regret it. This is not how you choose your car insurance. Insurance companies vary in the car insurances they have to offer. Therefore, it is always good to do your research and enquiry, compare car insurance before choosing and then buy the best car insurance.

However, you must ask yourself a few questions before choosing a car insurance policy:

1.      What kind of insurance policy do I need?

You need a third party car insurance in the least, as it is compulsory by law. This refers to liability insurance that provides coverage against injury or death of a third party due to any accident caused by your car. The damaged caused to the vehicle or property of the third party is also covered along with the legal fees. Other types of coverage available must also be considered, and then choose based on your needs, i.e.

Comprehensive Insurance: This cover provides a comprehensive all round coverage. You will receive monetary compensation even if your car is damaged from non-accident causes such as natural calamities, theft as well as third party liability.

Personal Accident Cover:  If you are in an accident, all your medical charges will be paid or lost wages incurred with the help of this coverage.

Always ensure that you go through the policy wordings provided by the general insurance provider.

2.      What deductible should I pay?

The amount of money that is decided between the insurers and insured is known as deductible. If there is any case of accident, you will have to pay the deductible amount before insurance company pays the rest. Premium rates can be lowered if a higher deductible is chosen. There are chances, you might not even have an accident, but always make sure you choose a deductible that is easy to pay for you in case of any accident.

3.      Will my insurance cover original manufacturer parts?

You will need to ask this question to your insurer. Two kinds of spare parts are available. Aftermarket parts are made to fit a general type of vehicle and are less expensive. Second kind are the original manufacturer parts that are made for particular models. Original parts must be included in their policy by your insurer.

4.      How will my car be valued?

Your car’s value is decided based on its IDV. Insured Declared Value or IDV is the compensation you are eligible to receive it the event of total loss or theft.

Before you go ahead and buy the car that you want, do a little bit of research until you find the best car insurance that fits your budget as well as suits your needs.

Basically, a car insurance will act as your companion no matter what damage is caused to your vehicle. Therefore, having a car insurance is a must!

 

 

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Car Insurance Mishap? Know Who Is Covered!

Any vehicle that you buy, must be covered by at least third party car insurance compulsorily. Having a car insurance in India provides a car owner with many benefits. A third car insurance policy will cover third-party liabilities whereas comprehensive insurance will cover third party as well as your vehicle and yourself. There is however a big confusion regarding car insurance. People want to know what will be the case if your car is damaged in an accident when you are not driving, someone else is? In this case, what happens to your motor insurance coverage?

·         Car Insurance Policies

While buying a car insurance policy, people can choose between a comprehensive or third party car insurance policy. A comprehensive car insurance policy will give you overall protection under several scenarios such as accidents, natural disasters, theft, as well as personal accidents. Whereas, loses that arise due to damages or injuries that are caused by insured to the third party’s property or a third party, all get covered under the third party vehicle insurance policy. Therefore, third party cover is very important and a basic requirement under a vehicle’s insurance policy as per the Indian Motor Vehicles Act.

·         Who is Covered When Driving Your Car?

It might be a little confusing to understand whether who is covered by your motor insurance for driving your vehicle. A car insurance policy will vary from insurer to insurer, but according to a general rule of thumb, all drivers who drive your vehicle are covered by your insurer. You also have an option to exclude certain people in the ‘excluded drivers’ list in your car insurance. These people won’t be covered when driving your car. Hence, you are allowed to lend your car to your friends and family members. You can even give those who don’t live with you as ‘permissive use’ which often applies in such cases. ‘Permissive use’ means if you hand over your car to someone else for driving, they will be covered as well under your car insurance policy.

·         Benefits

A minimum amount of insurance claim is required in all the states in India. Car insurance can be really helpful in managing the loss of a huge sum if any damage is caused to your car, in the following manner:

1.      If the accident results in death, benefits are provided to the survivors.

2.      As a result of an accident, it will cover lawsuits that include legal fees that are brought against you due to an accident.

3.      The bills of vehicle repairs will be covered, if any damage is caused in an accident.

4.      If the damage is caused due to reasons apart from accident i.e. theft, fire, etc. will also be covered

Car Insurance has been made mandatory by law and driving without it is illegal in India. Choose from comprehensive, third party or commercial vehicle insurance to cover your car.

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