« All About Your Car Insurance

car insurance 255x300 All About Your Car Insurance

What you need to know about car insurance

When you have bought your dream car, you would also need to get the car insurance for the same. Car insurance coverage can protect the car and you from any liabilities that may arise from the accident of the car or even if someone else hit’s the car.

Car insurance is also known as vehicle insurance, auto insurance or motor insurance. Insurance is provided for all types of cars, trucks and other vehicles. The first and the foremost reason is to provide for protection against any liabilities that may arise due to traffic accidents and others that can happen during other accidents.

Essentially there are two types of coverage’s that are known as comprehensive insurance and third party insurance.

Comprehensive insurance coverage

Just like the name comprehensive insurance, includes a vehicle insurance cover for any risk that may arise due to damages or theft of the car. It will also insure against the death of the driver and or even the passengers that were travelling in the car. It will also include protection from liabilities against the damages that may have been caused by the car to property or people.

For this reason, that car will be insured against risks and damages that may arise from natural disasters that include earthquakes, typhoons, tsunamis, volcanic eruptions etc. the car will also be protected against man made calamities such as burglary, theft, arson, riots, strikes etc.

Personal coverage

The personal coverage is extended to those that are travelling in the car, whether they are driver or co passenger. It provides for the travellers if they are involved in the accident while travelling in the car as well as embarking and disembarking from the car.

Coverage included in third party insurance coverage

The third party insurance coverage will protect you against legal liabilities that may arise from accidental damages that include permanent disability or death of a person, damages caused to the property, damage sustained to a person who was driving the insured car.

Both third party insurance and comprehensive insurance coverage’s are valid for a year for which insurance premium needs to be paid. At the end of the year, the insurance third party insurance and comprehensive insurance premium for would need to be renewed. The premium of the vehicle would be dependent on a number of factors such as the type of vehicle, the value of the car, whether the vehicle has been involved in an accident or not, the age of the driver and other such conditions.

There are certain conditions for which claims can’t be sought from the insurance company. These include costs related to the

General wear and tear of the car due to mishandling or such reasons

Depreciation of the car and any consequent losses as a result of the depreciation.

If there are any mechanical or electrical breakdown in the car

Tires and lubes are considered consumables and if there is any wear and tear of the same.

If any damages are sustained while the vehicle was been used for other reasons than mentioned in the vehicle insurance agreement.

If the vehicle has been used outside the geographical territory of India.

If a person has been driving the vehicle without a valid licence.

If a person has been driving the vehicle after having consumed drugs or alcohol or has been intoxicated.

If any loss or damage has been sustained due to war, mutiny or any nuclear risk.

When you have been involved in an accident whether you were in a car or someone else was driving and the car sustained damages, you can file for damages. The insurance company will pay for the vehicle insurance. For doing this, you would need to do certain things

The licence plate of the car that caused the accident needs to be noted down.

If there have been witnesses to the accident, you would need to note down the name and the contact details of the same.

You would then need to call the insurance company, file a claim and give them these details.

Also present them with a list of documents that are required by them. When you submit the documents, you should verify with the originals whether they have indeed received the same or not.

Check with the insurance company, whether they have a preferred garage where you can take the car for repairs.

An FIR would also need to be filed at the nearest police station and a statement made in reference to the property damage, theft, and body injuries that may have been sustained.

What are cashless claims and reimbursement claims?

Quite simply when the car goes for repairs to a particular garage, then the insurance company would pay for the damages that have been sustained by the vehicle. Cashless claims is where the insurance company would pay for all the repairs except those items that aren’t covered in the car insurance agreement.

You could also get the car repaired at a garage of your choice and then seek reimbursement from the vehicle insurance company. This is known as a reimbursement claim.