If you want to buy a car, you choose a dealer, visit the showroom, pay for the car, and happily take the delivery.
The dealer shows you the price lists, and you start inquiring about the features that the car has. Once you like the features of the car, you decide to buy it or not. You pay the price of the car and take the delivery. After paying for the car, you have to pay an additional amount for the insurance.
Every owner of a vehicle should know the various benefits of ensuring a car and the method of the calculation.
Things You Should Keep in Mind
It is mandatory for vehicles to have insurance. The insurance covers the car and is useful for the owner to claim a certain amount as compensation if an accident occurs in the future.
As per the new Insurance policy, your vehicles should have insurance. The duration can be up to five years, depending on your budget. You need to pay for the premium that has been set by the regulator.
You can claim the insurance to cover the expenses of the damages occurred to you or your vehicle. You can avoid claiming the insurance for damages which has a minor impact on your car.
How is the Premium Calculated?
The Insurance premium depends on the IDV (Insured Declared Value) of the Vehicle. The officials determine IDV by finding the market value of the vehicle. For a new car, you can go through the brochures which would include the IDV charges.
IDV varies from vehicle to vehicle every year. The older the model, the lower the IDV because of the depreciation factor.
Many owners, to avoid paying a higher premium, quote a smaller IDV for that model. It is not advisable to do so, because lesser the premium you pay, your claim amount will also be less.
What are the benefits?
A comprehensive car insurance policy covers the following issues. If you’re not sure what a comprehensive policy is, learn more at TheZebra.com.
1. Natural Calamities
This policy covers all the natural calamities which are out of our control.
2. Damage caused by Humans
This policy also covers damages happened because of theft, terrorism, strikes, etc.
3. Personal Accident
This policy benefits your family. If you get injured in an accident, this policy also covers your hospital expenses. This insurance policy also covers your driver. Some companies pay an equal amount to the co-passengers.
4. Third Party Cover
This policy covers you from any liability that arises because of an accident. If the victim has multiple injuries which can be fatal, the service provider pays a lump sum amount to the families for their safety and security.
These third-party insurance plans save you from compensating huge amounts to the hospitals or garages. Insurance companies take care of all the formalities and compensate the required amount to the victims. You can opt for car insurance cheap rates and ensure your car for a year or so. However, car insurance cheap service providers do not ensure the car entirely.
Claims that are not Covered
An Insurance company normally cover all primary issues in a car policy for the benefit of the owner. However, there are some deviations, which are not covered, when
• You are driving any other car other than yours
• Someone else is driving your car
• You drink and drive and had illegal substances
• When the driver has no valid license
• Damage is caused deliberately
• The accessories
• Wear and trade over a period of time
• Deviates from the purpose for which it was manufactured
Claiming Insurance
You can claim insurance by following certain rules and regulations of your service provider. The company has its branches which take care of your claims. If you are looking for faster processing of your claims, service your car in the certified service centers.
However, you can still claim the amount, if you are repairing your car from local garages. You can learn more about car insurance cheap rates and service providers at carinsurancecheap.net.
Why it is Important?
Many times, you may feel that you are wasting money by paying a premium for insurance that you do not claim. You may be an excellent driver and would not have caused a single accident. You may feel it is not worth paying money year after year without receiving any benefits.
But is it safe to avoid Insurance, we will say NO!
We do not know when an accident may take place; it may not be caused by you, but it is risky when your vehicle is involved. The victim may want compensation and without proper insurance, paying money to the victim will become a huge burden if the money involved is high.
Any accident is a chance, and you should not lose huge money without insurance. Vehicle insurance will safeguard you from a sudden financial burden that would arise because of damage or accident to your vehicle.
