ALL >> Investing---Finance >> View Article
Car Insurance: A Detailed Guide
A car insurance is a contract that protects the customer from losses incurred during mishaps, in exchange for a premium paid to the insurance company. Such policies cover liabilities of not only the insured car and its owner but any third party that may be involved.
Third-Party Liability Insurance, which has been made mandatory for all vehicles, protects against injury to a third party or any damage to his property with some policies having built-in coverage that includes treatment costs, lost wages compensation, rehabilitations and even funerals.
However, as this policy does not protect the insured car or its owner, a more favoured option is a Comprehensive online Car Insurance, despite premiums being higher. A comprehensive policy not only provides personal accident cover, but also include co-passengers cover too (offered by some insurers), besides the insured car being protected against losses due to both, natural and man-made factors, or while in any type of transit.
At the time of buying a vehicle insurance, it is important to provide all relevant information to the insurer for the insured to be able ...
... to obtain a hassle-free settlement in the event of a claim. For a cashless claim, the insured must connect with an authorised garage for necessary repairs, but in the case of a reimbursement clause, the car must be fixed first by the insured and the payment receipts submitted with the insurer. For a proper settlement process, it is advisable to file a FIR and simultaneously informing the insurance company so an accurate evaluation of damage can be undertaken by a company representative.
Claims may get rejected due to several reasons. Inaccurate information provided to the insurer or not informing the insurer within a specified timeline are some common reasons. So are driving without licence or driving under the influence of alcohol and drugs. Making repairs without informing the insurer can also lead to rejection. Quite importantly, claims need to be considered wisely as a claim-free year entitles the insured to rebates on premium paid.
Depreciation is a deciding factor with regards to claims. IDV (Insured Declared Value) of a car is its present market value, taking depreciation into account, on the basis of which the premium amount is calculated. So, for luxury cars with high replacement and repair costs, it is a necessity to opt for a Zero Depreciation Cover, also known as Bumper to Bumper Cover.
Lastly, buying a car insurance should be preceded by a satisfactory comparison between various policies on offer which are provided on many website platforms, saving on extensive searches on the internet, and saving costs at the time of purchase too.
Author bio:
Neha Sharma is a finance student who loves to write in her free time. She has spent considerable time researching about car insurance. Through her work, she gives us a detailed guide about the same.
Add Comment
Investing / Finance Articles
1. Innovative Accounting Solutions For Modern BusinessesAuthor: Business Tax & Money House
2. Can Someone With Bad Credit Still Get A Short Term Loan Online?
Author: Jockey Ferguson is a financial adviser of Fast Pay
3. How To Manage Cash Flow For Online Retailers
Author: Thomas Edward
4. A Detailed Guide Set Up A Company In Ireland
Author: LSC and Partners - Corporate Tax Consultancy LSC
5. Rupay Credit Cards: Your Ticket To Exclusive Rewards And Benefits
Author: Priya
6. Top Upcoming Telegram Airdrops You Don’t Want To Miss!
Author: Cryptoreach
7. The Art Of Diversification - Building A Robust Portfolio For Long-term Stock Market Performance
Author: Broker Analysis
8. 10 Effective Strategies To Boost Real Estate Lead Generation In 2024
Author: Horizon Consultants
9. How To Choose The Best Financial Advisors In Indianapolis For Your Future
Author: Kurt Supe
10. What Are The Requirements For Applying For A Personal Loan?
Author: divya negi
11. Investment Banking Companies In Hyderabad: Your Guide To Financial Excellence
Author: Verity knowladge solutions
12. No Credit Check Payday Loans
Author: Daniel
13. A Complete Guide On All Cfo Services
Author: Vibhay Ranjan
14. Navigating Success: The Role Of Venture Capital Deal Flow Management Software
Author: Fundwave
15. Streamlining Investment Strategies: The Rise Of Fund Management Software
Author: Fundwave