Everything about Car Insurance that you want to know
A car insurance is an important document which should be carried along every time while driving. It helps keep peace of mind as it lets people involved in any incident covered by insurance claim for the damages and also mandatory as per motor vehicle act of India.
The dawn of the first world war had made the world extremely efficient in terms of automobiles owing to the advancement and requirement of mobility in war. Thus, the cities were filled with people driving cars. This led to a situation where accidents, when happened were unaccounted for. The people who were injured recieved very low or no compensation. The drivers of the cars also had to face considerable costs for the damage of car and property.
This is the time when car insurance came into being. The first car insurance scheme was introduced in the United Kingdom with the Road Traffic Act in 1930. This was teh time when people learned about a car insurance policy and started understanding its meaning and importance.
What is a car insurance policy?
Car insurance is a mandatory legal document and as a responsible driver you are supposed to be aware of it and carry it along. The importance of car insurance however, is simply underestimated and sometimes misunderstood. A lot of factors are kept in consideration when talking about a car insurance policy. From the kind of car a person owns to their driving history, their budget and a lot more.
Why is a car insurance important?
As stated above, the first and foremost reason why a car insurance is important is because it is legally required under motor vehicle act of India and not carrying one, is a civil offence that leads to fine or penalty. An insurance provides legal and financial protection in the event of an incident which causes damage to the vehicles and injuries to the people involved. Depending on the type of policy purchased, it can include various factors such as repair costs to the damage of the vehicle, theft or any other reason that damages the vehicle.
The procedure of buying a car insurance starts with filling out a form. Make sure that your details are accurately filled in the form whether you are going for an online car insurance or otherwise. Incorrect details, can lead to invalid insurance and hence you can be devoid of claims. Different areas are covered in the form owing to the calculation of the premium.
The questions on the form will include the following sections
- Vehicle make and model
- Registration city
- Name and Age of the person in whose name the vehicle is registered
- Voluntary excess
- Additional drivers
- Claim taken
There are three main types of policies to choose from when purchasing cover
- Third party only or TPO
- Third party, fire and theft or TPF&T
- Comprehensive policy
- Zero Depreciation Policy
It is important to keep the insurer updated about any changes being made about your location or any other factor that relates to your vehicle, so as to keep the policy valid under any circumstances. Similarly, in the event of an incident or a theft, you must let your insurer know, even when not applying for a claim.
If for instance your car insurance expires, there is a mandatory inspection and post that all you need to do is pay the car insurance renewal fee and you are good to go.