Having Auto insurance is mandatory in almost all states of India. It is a contract between the insurer and the insurance company that they will provide the financial coverage of the losses in case of an accident. Auto insurance basically covers the property, liability and medical losses.
Property losses: It includes the loss when your vehicle is stolen or lost.
Liability losses: It covers the losses of damage and bodily injuries caused due to accidents to the other person.
Medical losses: It covers the cost of medicines, hospital treatment, and funeral expenses also.
What happens if you don’t have car insurance and you meet with an accident?
Insurance is mandated and it is a must to have insurance if you are driving a vehicle on the road. If you don’t have insurance and you get in an accident then a huge fine will be imposed on you, your license will be suspended or you will get an official notice of a traffic offense. Apart from this, you have to pay for the repairing cost and the medical expenses from your pocket if some get injured. Most important is if someone gets killed in that accident then it might be possible that you have to face court hearings and get imprisoned for years. So, if you want to get rid of all these tensions, then take auto insurance instantly.
Why it is important to take an insurance plan?
- It provides Reimbursement for damage in the vehicle.
- Policyholder gets financial help for your family if he/she, unfortunately, demise in an accident.
- It will reduce your responsibility and protect you from legal formalities.
- It will provide the medical expenses if you get injured while accident.
- The earlier you buy, the better you will get and the lesser you have to pay now and will save more in the future.
How can you choose the right auto insurance coverage?
When you are on road and driving a vehicle, it’s not enough only to drive carefully and follow the rules. Maybe you are following the rules but how can you be so sure about others. So, it’s better to be at the safer side and have insurance. It is also a pain to choose the right type of coverage from the multiple plans available in the market. So here is some main point that you can keep in mind while choosing for coverage.
- Personal Injury Protection Coverage
Whether it’s your fault or not, it will cover the medical expenses for both the passenger and the policyholder. It is a mandatory coverage in some states. It will also cover the lost wages if you are injured and don’t able to go on work.
- Collision Coverage
It will provide the reimbursement or the replacement of the vehicle if it gets damaged in the accident crashing with another vehicle or object.
- Comprehensive Coverage
When your vehicle is theft, damaged in hail, vandalism or damaged due to natural calamities, then comprehensive coverage will provide the compensation of the damage vehicle. It will not cover the damage cause due to driving.
- Property Damage Coverage
Property Damage Coverage will provide the compensation for the damaged caused to the property of another person whether it is the building, fence or vehicle.
- Gap coverage
If you have financed your vehicle and the amount is still pending, then gap coverage will help you to pay off the amount in case the vehicle is totaled or theft. This insurance will cover the gap of the actual amount and the current worth of the vehicle.
Things to remember while purchasing auto insurance
Select for the top-rated insurer:
Check for the ratings and reviews online on the website of the company prior to purchasing any insurance plan. It will give you a rough idea about the successful claim settlement ratios, services offered and non-claim problems.
Go for low deductibles:
If you go for high deductible then your premium amount will reduce. So, check for the policy with low deductibles so that you will get the maximum coverage.
Check regularly for credit score after purchasing auto insurance and try to maintain it:
Once you purchase the insurance plan then it is compulsory to maintain the credit score otherwise your premium gets impacted directly if the credit score goes down.
Check for auto claim process:
Auto claim process will make sure that you don’t have to rush to the insurance company with the hardcopy of all required documents. The complete claim can be settled by sitting at the comfort of your home by sending the required images and scanned documents on mail.
Compare annual rates with other companies:
Compare with the annual claim rates with other competitor companies in the market so that you will get the best contract.
Beware of scams:
Frauds can anytime trick you with fake accidents, at that time you have to take the responsibility of the crash and expenses. To avoid this type of scenario we request you to drive carefully if something happens then report the incident to the police immediately and take pictures of the crash scene.
Check for more discounted offers:
Multiple coverages in a single plan will cost you less in comparison to multiple plans with solo coverage. So, go for combined policies as it will cost cheaper for you. Apart from this, special discounts will be available for those who have a record of long safe driving or have specialized any driving course.