By Navy Goel
Auto insurance (auto insurance) is now compulsory for any new vehicle in India, under the Motor Vehicle Act, whether you use it for your personal use or for business purposes, your car must be insured with from an auto insurance company.
Just like health insurance policies, auto insurance protects your car and the driver from accidental or damaging liability. With more personal vehicles on the roads, private auto insurance is increasing in the auto insurance industry.
What does auto insurance mean?
Auto insurance provides you with financial protection against accidents, theft or other damage or loss, and natural or man-made disasters. It also gives you coverage in the event of an accident.
How it works?
Auto insurance companies have linked up with different auto companies. They give you instant premium quotes for cars, depending on the manufacturer of your vehicle. Once you register with them, your car is insured.
How is the premium calculated?
The premium for the car is calculated according to the manufacturer of the car, its year of manufacture and the region in which it is registered. It depends on the declared insured value (IDV). The premium generally increases with the increase in the price of the vehicle.
Different auto insurance companies would offer different insurance coverage plans with different premiums depending on geographic locations. But part of the basic insurance coverage would be:
â¢ Loss or damage to the car following an accident, fire, burglary, lightning, external explosion, self-ignition or any malicious act.
â¢ Third party liability in the event of death or injury, third party property and liability to the driver paid.
â¢ Loss or deterioration of electronic devices in the car, upon payment of an additional premium.
Also read: How to buy car insurance at the best price
How to make a complaint?
Auto insurance companies allow you to make a claim for accident, theft, or third party claims. At the time of the claim, you will need to submit the following documents:
â¢ Signed complaint form
â¢ FIR copy
â¢ RC copy of your car
â¢ Copy of driving license
â¢ Original estimate
â¢ Copy of your policy
How to make a smart choice?
Before making your car policy or even renewing your car policy, you must compare the quotes online and choose the best option. Every auto insurance policy has pre-defined coverage and exclusion points. Some newer policies offer special towing, depreciation, and other value-added services. You can also make a smart choice by choosing:
â¢ Zero Depreciation Cover, which allows you to get the original cost of any part, instead of the amortized cost. This feature is usually offered at an additional cost.
â¢ No Claim Bonus (NCB) allows you to get a discount, while renewing your policy if you have had no claims during the previous year. It also saves the policyholder money on premiums.
What are the additional benefits of auto insurance?
Besides the usual claims for loss and damage, having auto insurance helps the insured in several other ways while on the road. The insured becomes eligible for certain additional benefits such as:
â¢ Gifts of the road. In the case of a broken down vehicle, you can benefit from an emergency transport service, or in the event of fuel failure or dead battery, you benefit from assistance to refuel or recharge. your battery. These little things on the road can make a big difference in your life.
â¢ In the event that the insurance company keeps the car longer than originally planned, for maintenance, the insured can claim a daily cash allowance for its transport.
â¢ Services such as âInvoice Return Coverageâ allow you to get the depreciated value of your insured vehicle in the event of total loss or damage to your vehicle.
â¢ Replacement coverage service provides new keys or locks in case you lose your car keys.
How can auto insurance make your life easier?
With so many auto insurance companies around us, it is important to choose the best policy that balances premiums and coverage wisely. It is easier to choose and compare online rather than physically visiting each insurance company. Some of the websites also offer us to buy the policy at the same price as the actual companies. This means you can sit back at home and get your auto insurance policy at no extra cost! It is definitely worth the money and time.
(The author is the CEO of PolicyX.com. The opinion expressed here is his own)