Hello, Car insurance its very important but most of us know way too little about car insurance and all that it entails. Here we’ve prepared for you a comprehensive guide to car insurance it’s everything you’ve ever wanted to know, and more. Here we go;
1.Key factors that determine your car insurance premium
The value of your insurance policy is based on the IDV- the Insured Declared Value of your vehicle, which is the maximum insured amount sum the insurer can pay you; it roughly equals the market value of your vehicle. So, when you buy insurance for a new car, the IDV is calculated based on the showroom’s listed price. However, the IDV of your car is not constant.
When you renew your motor policy after a year, your IDV will decrease because of the rate of depreciation that is applied on
2.Concept of Motor Insurance
Car insurance works on a “use it or lose it” policy. To avail it, you have to pay a yearly premium. If you are fortunate enough to not have a serious enough accident to want to claim, you lose the premium amount you paid for protection. On the other hand, you get a No Claim Bonus, which is a pretty substantial amount- st ..
3.What does Motor Insurance cover?
- Loss or Damage Due to Natural Calamities:
Events outside of your control, such as lightning, earthquake, flood, typhoon, hurricane, storm, cyclone, landslide, etc.
- Loss or Damage Due to Man-Made Calamities:
Man-made disasters like burglary, theft, riot, strike, terrorist activity, and any damage caused in transit via road, rail, or water.
- Personal Accident Cover:
This secures your family’s future in the event of a permanent disablement or in the unfortunate circumstance of your death. You can get coverage of up to 2 lakhs for any damage caused to the driver while travelling, mounting, or dismounting from the car. Some insurers also offer optional accidental covers for co-passengers
4.Availing Car Insurance
With select insurers, you can shop for your car insurance and avail your claim online. Moreover, you can avail their cashless garage facility for the repair of your vehicle, which basically means that you don’t need to pay a penny for repair as long as you avail the services at a garage that they have in their purview. In case your vehicle is serviced at a garage outside their network, you can claim reimbursement for the same.