Everyone Know About Car Insurance

You have got a brand new car. You take your lovely car out for a drive. Everything is going good until a jerk bumps your car from behind. This not only damages your car but also you feel as if your dearest dream has been shattered within seconds. You get worried whether the damage will get repaired and whether you shall able to bear the high costs. Such thought scan unnecessarily stress you and dismantle your savings.

However, if you have proper car insurance in place then all worries are nullified.

In this article, you will get to know all you should know about car insurance so that you can receive great benefits from car insurance.

Car insurance-Introduction

Car Insurance is an arrangement which involves the car owner and the insurer. The insurer provides coverage against financial losses due to car damage. It covers damages caused due to accidents or natural calamities or any 3rd party liability occurred due to theft or accident.

Types of Car Insurance in India

Car Insurance policy in India offers two types of covers-

3rd Party Liability Cover
Comprehensive Cover Plan

Further you'll get to know about the specifications of each of the two types of car insurance policies.

3rdParty Liability cover | 1st type of car insurance in India

This cover provides coverage against any legal liability which may result from your car's accident. The 3rd Party Liability plan covers death, injuries or property damages occurred to the 3rdparty. This type of car insurance does not cover damage to the car.

As per Motor Vehicles Act of India, a 3rdparty liability cover is legally compulsory in India.

Further you'll get to know about the 2nd type of car insurance in India which is Comprehensive Cover Plan.

Comprehensive Cover Plan | 2nd type of car insurance in India

Comprehensive cover plan provides protection to you as well as your vehicle.

Let's see what it covers-

A regular comprehensive cover plan includes coverage of repair costs for damage to your car due to natural or man made calamities as stated in the plan's scope
A 3rdparty legally abiding liability cover
Personal accident cover for the car's owner/driver up to Rs.1-2 lakhs requiring a small premium of just Rs.100/-

Further value-added benefits for car insurance buyers!

In 2010, certain general insurance companies in India added a host of value-added benefits for car insurance buyers. This enabled customers to benefit from additional protective gears thanks to general insurance companies in India like Bajaj Allianz and Tata AIG.

Each of these value-added options has their own USPs and helps customers to get more from car insurance policies.

For example Bajaj Allianz provides services which give value-added services like-

Cash free settlement across 1500 trusted workshops
Hassle free and quick procedures for claim settlements thus ensuring complete customer satisfaction
Speedy online processes for purchase of general insurance and claim settlements
24x7 customer support available

Hence, now you know how car insurance provides useful benefits to car owners.

Affordable cheap car insurance price for your drivers

Insurance nobody can argue on that matter as it is mandatory for the car buyers to get hold of a car insurance that they feel will be suitable for their long term goal of protecting their car from unforeseen damages and also affordable as far as the premium repayment is concerned. Young drivers are the ones who need to strive harder to get hold of an affordable young drivers cheap car insurance because they are mostly students who still have not secured a job and thus have no way of convincing the insurance firms about their repayment capacity.

To find out whether the cheapest young driver car insurance deal can be cracked the students need to visit well known online websites like Insurance Quote Lab so that they can carry out thorough research and undertake comparison of new drivers cheap car insurance quotes before settling down with the most affordable deal. In order to find out whether one is even qualified to secure young drivers cheap car insurance one must make use of the online car insurance calculator tool which will help the borrower to figure out the exact calculations which will have to be shelled out on the auto loan and the insurance premium on a monthly basis.

This will enable the borrowers to understand their financial capability and determine whether they will be able to repay the premium as promised to the insurance company. For students and other young drivers the insurance firms have a set of parameters to check whether the said applicants will be able to repay the amount entrusted to them at the cost of a service provided by the firm. Hence, the insurance firms check the applicant's family's financial background, credit history and also valuable assets which they may possess.

 If the young driver does not have a job then the next thing that the insurance firm will consider is whether the applicant will be able to place worthy collateral as security in lieu of the insurance so that in case of default in the future the pending amount can be recovered from the collateral. If that does not work then the insurance firm will try to find out whether the applicant will be able to find a cosigner to attest to the responsibility of repaying the pending insurance premium in case of future default by the primary applicant.

Save Money Car Insurance And Expert's Tips

How expensive car insurance online can become. However, there are various ways to bring it down to reasonable rates without compromising on the quality of benefits obtained. This way you can make choices based on your personal requirements and pay only that much which is necessary. There are ways to reduce the rates further on your dream auto insurance.

Here below are some expert tips for saving money on your car insurance online.

Go for non-claim bonuses

For every year that goes claim free, auto insurance companies pay you bonuses. If this goes for some years successively, there comes a time when you can get up to 50% reductions in the premiums you pay! If you believe that this is a joke, think again! Those were looking to save on their auto premiums can go via this route. Compare car insurance and find out the company that offers no claim bonuses and subsequent discounts.

Higher deductibles is the way

With higher deductibles, you can easily bring down the premium amounts you need to pay. However, remember, by going for this option, you have to pay more out of your pocket, in case accidents happen. If you are ready to take on the added financial burden or consider yourself an exceptionally safer driver than going for this option, surely make sense.

Give personal details

By providing expansive personal details to auto insurance India, it is possible to get reductions on the premiums you pay. There are companies out there that provide better offers. If you can divulge such information as gender, age, claim history, marital status, driving record, and occupation, insurance companies are going to reward you with 10% to 25% reduction on premiums. This is because through the information given companies can make their calculations, more accurately.

Deny additional covers

You can do with certain additional covers while going for auto insurance India, such as hospital cash, emergency expenses, depreciation costs, and roadside assistance. However, if your agent is trying to push unwanted covers that provide few benefits your way, it is time to refuse. By going for such covers, you will be inflating your premium rates unnecessarily. Compare the features of this additional coverage and then make the final decision.

Become a member of AAI

By becoming a member of the Automobile Association of India, you become eligible for getting discounts on your auto insurance. These can be up to 5% of the total amount you have to pay.

Installing safety devices

Experts believe that by installing safety features on your automobile is possible to woo insurance companies. Installation of such devices signifies lower instances of accident or theft. This in turn makes for a lower claim instances. No wonder, insurance companies reward you with deductions on premiums.