TYPES OF CAR INSURANCE
Apart from the compulsory third party insurance there are other car insurance plans providing different types of covers.
- Third party property damage
- Third Party Fire and Theft Cover
GENERAL Exclusions FOR MOST INSURANCE COVERAGE
- Comprehensive Car Insurance
- Damage of tires without accident
- Structural failure due to faulty maintenance
- Corrosion, Wear and tear of parts
- Intentional damage to the vehicle by owner or anyone related to owner
- Accident registered outside the described territorial limits
- If driver doesn't have a valid license or did not comply with traffic rules
- If vehicle is used for purposes other than mentioned in your certificate of motor insurance
- Any loss or destruction caused directly or indirectly by radiation or radioactivity from nuclear waste
HOWEVER THE FOLLOWING CASES ARE CONSIDERED TO BE UNDER THE INSURANCE COVER
- Damage caused as a consequence of war or revolutionary activities or civil commotion
- Damage caused during repair work by a certified motor trade company
- Damage caused while under custody of restaurant parking authorities
WHY YOU NEED A MOTOR INSURANCE
- Damage caused by an unlicensed driver, whom the Policy holder is ignorant about
Car insurance is mandatory as it helps you overcome unexpected crisis with ease. Car insurance is beneficial in many ways:
- Provides compensation for fatal accidents
- Meets legal expenditure during accidents
- Provides finance for the repair and restoration bills of vehicular damage
HOW TO CHOOSE
- Provides travel allowances in case your vehicle is in workshop and provisions for a new car in case of vehicular theft
Third party insurance is compulsory and is the minimum any driver will have. Further necessities could be covered by investing in other vehicle insurance policies. These include damage to other's property and vandalism and also theft of the vehicle.
Choose the plan that suits your driving habits best and consider the following selection criteria:
- Is yours an imported vehicle?
- Are you using it as a private or business vehicle?
- Car specifications and modifications if made.
Identifying plans based on low cost won't always be successful. The best car insurance is the one that meets your driving style and risks involved without compromising on your budget. Cheap policies may not cover key stuffs and during a crisis you may end up spending a lot more than you have to if invested in a better policy. Compare car insurance based on cover and price and buy car insurance that suits your budget. Remember 'best things are not always cheap'.
- If car is completely damaged due to Accident the insurance will provide either pick and drop facility or travel allowances during the repair period.
- If vehicle gets stolen and unrecovered or repair costs exceed limits the vehicle is liable for a free replacement borne by the insurance company.
THINGS TO REMEMBER
- Some insurance companies provide courtesy car upgrade and part replacements as an added benefit.
Before buying a motor insurance
one must be aware of his requirements and compare benefits of different car insurance plans to choose the best one for him. Drivers who do not use their vehicles much can go for a cheap vehicle insurance or even go for ‘Pay as you drive’ offers as he would be less likely to be involved in an accident or to make a Claim
thereby reducing the policy costs.