Car insurance or auto insurance is designed for those who want to finance a car for personal use. A car loan can allow you to use the car of your choice immediately in exchange for regular payments over an agreed period of time. Also known as gap insurance or car insurance, these are purchased for cars, trucks, motorcycles and other road vehicles. These insurances in the form of primary and liability insurance offer financial protection against property and/or bodily injury as a result of traffic accidents and against liability that could also result from this. It provides accident coverage for individual owners of the vehicle who may suffer accidents while driving, as well as for passengers and the legal liability of third parties, which ensures coverage for the person who may be harmed by the accident caused by the driver. There are certain general insurance companies that also offer an online insurance service for the vehicle. In India, it is required by law that all vehicle owners, including commercial and private special purpose vehicles, have insurance for their cars.
Factors that affect car insurance
One variable that affects insurance rates is whether the car is a new or used model. The driver’s accident record can also be taken into account for the repair of the premium plate of the insurance product. Even if the price of the car increases, the premium fees increase given the higher amount that must be paid in the event of an accident.
Process of submitting insurance applications
Once an accident occurs, the driver must submit an FIR to a local police station and then submit the documents such as properly signed application form, RC copy of the vehicle, driver’s license copy, FIR copy, original estimate, and policy copy to be eligible for the claim.
Types of car insurance
Damage:
The cover paid for the damage caused to other vehicles in an accident for which the person is legally responsible.
Bodily injury:
Covering the costs of medical and legal defense against any accident in which the person is legally responsible.
Medical payment:
Covering the medical costs incurred by a person and fellow passengers during an accident, regardless of whether the person was to blame or not.
Collision Coverage:
The cover is subject to a deductible and covers damage caused by a collision with your own vehicle.
Uninsured motorist coverage:
Coverage of damage to protect a person and passengers in the event of an accident with an uninsured driver
Comprehensive coverage:
In addition to collision damage, comprehensive coverage pays for damages subject to a deductible from theft, natural events, fire, vandalism and collisions with animals.
Different types of car insurance in India:
Private car insurance:
Fast-growing sector, since it is required by law that all new cars are compensated and the amount of the premium is determined by the brand and value of the car, the state in which the car is registered and the year of manufacture.
Two-wheeler insurance:
Covers accident insurance for the drivers of the vehicle, and the amount of the premium depends on the current showroom price multiplied by the depreciation rate set by the Advisory Tariff Committee at the time of the start of the insurance term.
Commercial vehicle insurance:
Commercial vehicles such as HMVs, trucks, etc. are insured under commercial vehicle insurance under car insurance in India and their premium is calculated based on the showroom price of the vehicle at the beginning of the insurance period, the brand of the vehicle and the place of registration of the vehicle.
Provisions outside the scope of motor insurance:
- Consequential damages, depreciation, mechanical and electrical failures, failures or breakages
- Vehicle used outside the geographical area
- War or nuclear dangers / Unrest and political unrest and drunk driving
commercial auto loan
#Insure #drive #basics
Wendy is now a financial analyst and writer. Wendy has been writing about finance and personal finance since she was a sophomore in high school. She has also been writing for several online publications and published in The Huffington Post, and Forbes Woman.
Wendy is a credentialed financial analyst and has experience working with financial institutions and businesses. Wendy is also a certified financial planner. When Wendy's not writing, she enjoys tending to her many plants, watching TV, and spending time with her family.
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