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Car Insurance: explanation with four ‘W’s & one ‘H’

At the time of buying any new car, we think about its safety too. We make sure to give our vehicle a proper care so that it could live a long life. And in this aspect, insurance helps us in a lot better ways. Let’s go deeply and understand properly this word ‘Insurance’.

What is Insurance?

So let’s start with meaning of Insurance, it is that policy which provides finance protection to your vehicle against physical damage and/or body injury resulting from traffic collisions. So, it can be said that insurance can save you, your co-passengers and the finance that you’ve spend on your car. It’s a smart planning which helps you to save your finance and financial plans from spoiling.

Here is one more thing which needs to be taken care of and that is the third party insurance. ‘Third party coverage’ is the most important part of car insurance after ‘own damage coverage’ and hence it’s compulsory to take (as per Motor Vehicles Act). It helps in situations like any harm caused to a person who was standing there and injured or killed by the accident happens by any insured vehicle or in case of damaging any building/wall etc after the crashing by any insured vehicle.

Hence in short, we can say that third party insurance covers:

  • Personal injury
  • Property Injury

When do you need it?

Car insurance insures generally in:

  • Damage or loss by accident, self ignition, burglary, fire, external explosion, theft, malignant act.
  • During any accident, it takes responsibility for third party injury/ death, third party property and also responsibility to paid driver.
  • If electronic accessories damage/loss then insurer does payment of suitable additional premium.

But it takes no responsibility in case of:

  • Consequential loss, devaluation, mechanical and electrical breakdown, failure or breakage.
  • If your vehicle is used outside the geographical area that mentioned in your insurance policy
  • Drunken driving and war

Where can you get it from?

When we plan to buy a new car, we make sure of complete accuracy and spend so much time to research about the different facts which we need at the time of car purchasing. The reason behind this is obvious that no one want to disappoint after taking this important decision. But sometimes we avoid one of the most important point i.e. car insurance, we don’t give so much attention in this research and as a result ending with buying a not so much good insurance policy.

There are many dealers who provide the car insurance but it will be beneficial for you to buy it online but be attentive at the time of buying.

Here we are listing some of the useful points which should be kept in mind at the time of purchasing insurance for your vehicle:

  • Give your proper time in doing research and decide.
  • Don’t miss the additional deals which are being given by insurance company.
  • Not only your car, but you can insure its accessories too like premium features, alloy wheels etc.
  • If you need any road side compensation during your journey, then insurance company provides it free of cost.
  • It’s better to buy the insurance online than from your dealer. If you will buy your insurance directly from the company online then it will not only save time but save the money too.

But also it doesn’t matter how easy online process is, still we need to keep in mind some points which will not only help you in obtaining an online car insurance but also supports you in getting the best deal.

  • Visit different websites which will assist you in comparing the insurance policy given by various companies.
  • Make sure you have studied and understood all the terms and conditions of the particular policy because every policies have some hidden terms as well as conditions. If you have any doubt, feel free to call the customer care of company and clear all your doubts and then take next step.
  • When you buy insurance online, keep all the necessary documents with you like id proof, car’s and its engine details, debit card/credit card etc.
  • Review the page again before submitting to make sure you have filled every detail accurate, otherwise it will create problem when you will have to claim the insurance.

Why is it necessary?

While insurance saves you, your passengers and your cars at your worse time, the third party insurance saves you in case of any third party damage by your vehicle. It will help you by covering the legal liability of third person’s/property’s damage/loss. Hence it becomes necessary for you to take this third party insurance along with yours.

Insurance companies also offer many add-ons which will increase the insurance coverage of your car. Though these add-ons cost you more, but still some are worth adding while others are not. Hence it’s necessary to investigate properly which add-ons you should take with your insurance policy. Some of the add-ons which could be added are as follows:

Gap Insurance

It protects you during the time of accident when the total expense of repairing, servicing etc cost you more than the insurance company pay you. At this time, you have to spend from your pocket if you don’t have this gap insurance.

Roadside Assistance

It includes towing services and mobile repair in the case of car breakdown on the road. It’s an essential add-on which helps a lot especially when you are travelling alone. It gives you so much other facilities too like free of cost pick up of spare car keys in case your keys are locked inside the car by mistake or lost, responsibility of fuel providing by the insurer in case you are on road and the fuel has finished and many more.

Uninsured Motorist Coverage

It provides the coverage in the case when the other driver is legally responsible for the accident and is not insured. This type of insurance is must in some states while optional in others, and many insurance companies don’t provide it often without asking. It’s a beneficial one because it pays for the injuries of policy holder and her/his co-passengers.

Allotment of transportation cost

This add-on provides the owner transportation expense in case if her/his vehicle is going to be in garage for more than 4 days.

NCB custody

NCB stands for No Claim Bonus (represented in %) is a discount offered by insurance company at the time of renewal for not making any claim on the insurance, it is given to you as an award for being a safe driver.

At the time of renewal of your insurance, you can transfer your NCB from one company to other but person can’t exchange, means if NCB is on your name then only you can get this discount in your insurance. Also it’s necessary to do the renewal of your vehicle within 90 days to take the benefit of NCB otherwise it will be zero.

How can you claim your insurance?

Now the question arises how can we file the claim in a proper way? One should understand the claims process to face fewer problems at the time of filing your claim.

  • Start with calling an ambulance if anyone gets injured there.
  • Then exchange the names, addresses as well as contact numbers with the other driver involved in accident.
  • Also don’t forget to note down the other vehicle’s model, type, license plate number, total number of passengers in other vehicle and brief overview of the damage occurred in each vehicle.
  • File the report in police station, it depends on how huge is that particular accident and what is the conditions of your insurance policy.
  • If you are done with collecting all info about accident and filing the report at police station then it’s time to contact your insurance company to give info about the accident and damages (if any).
  • Your insurer may tell you to go any specific auto body shop for the inspection of the vehicle for deciding the cost of repairs and get an estimate.
  • It’s your insurer responsibility to review all the available information including total damage, police report, and statements given by witnesses to provide the cost estimate.
  • Don’t forget to claim the third party insurance when you are informing the insurance company. Note down the full details of the particular person/property that has injured by your mistake.
  • Once you file the claim and insurance company decides the coverage, it’s been easy to get your car fixed. Company will work to help you in damages coverage by determining who’s at fault means if its other driver’s fault then company makes sure to recover your deductible amount from the other driver.

So guys; don’t forget to take insurance after doing complete and proper research at the time of purchasing your car. It will give you relief, save your money and provide you so much of comforts.

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