Your car is a prized possession. You have paid lakhs of rupees for it. Damage to your car in an accident could cost you thousands in repairs. Replacing your car if it is fully destroyed in an accident can be a financial nightmare.
• Third Party liability Insurance
• Comprehensive Auto Insurance
Third party auto insurance is compulsory in India. If you avail comprehensive auto insurance, injuries you suffer and damage to your vehicle is also covered.
Auto Insurance plans are very cheap in India. If you avail auto insurance online, you can save on premiums.
If the policyholder dies in an accident, his family gets a death benefit. All legal fees due to the accident are also paid by the Auto Insurer.
You get a discount on the car insurance premium, when you renew the car insurance plan, if you have not made a claim on your car insurance policy, in the previous year.
Getting a car insured requires minimal documentation.
For a new policy, you must submit the filled up proposal form and copy of the Registration Certificate (RC).
For renewals, you will need the copy of the RC (Registration Certificate) along with the copy of the previous insurance policy.
If your car meets with an accident causing injury to a third party (person not related to you) ,damages his property or his vehicle, causing him a loss (financial loss), then the third party liability insurance pays for the medical treatment and the damages suffered by the third party in the accident. It is compulsory in India to have third party liability insurance.
The third party liability insurance does not pay for damages to your car, or for injuries suffered by you in an accident. This means you need more out of your auto insurance plan. You need a comprehensive auto insurance policy.
You are covered for the damages and injury you cause to a third person and his property, if you avail a comprehensive auto insurance policy.
In addition to this
If your car is damaged in the accident and you suffer an injury, then the comprehensive auto insurance policy pays for your treatment. You are recompensed (paid money), for the damage to your car.
Comprehensive auto insurance is extensive and includes damage of car, theft of vehicle, third party legal liability and personal accident cover. The policy coverage can be further extended by opting for add-ons like accessories cover, engine protector, zero depreciation cover, medical expenses and so on. This type of coverage is the most popular as it offers end-to-end coverage and thus less stress for the policyholder.
The natural wear and tear suffered by your car with age, is not covered by the comprehensive auto insurance policy. Mechanical and electrical breakdown and failures related to this are not covered by the comprehensive auto insurance policy. Damage to your car caused by you driving under the influence of alcohol and drugs. These are not covered under a comprehensive auto insurance policy.
If you do not make any claims under your comprehensive auto insurance policy for the previous year, you are rewarded with a no claim bonus. When you renew the policy you are given a higher coverage for the same premium. You could get a cover (increase in the insured amount), by up to 50% under the no claim bonus.
If your vehicle suffers a small damage (say a scratch), it is best that you get the repair done yourself. The cost is insignificant.
If you make a claim on the comprehensive auto insurance policy you would lose the no claim bonus. You must use the comprehensive auto insurance policy only in an emergency (serious damage suffered to your car).Otherwise it is best not to make a claim.
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