Why is it important to have Vehicle Insurance?

Vehicle Insurance

If someone is going to buy any vehicle then it requires a lot of planning. To buy a costly car, you need a huge amount of hard-earned money. Prior to purchasing any car, we all should decide for the color option available, mileage of the car, available interiors and other features. So, it is also equally necessary to keep care of the car and take car insurance when you own a car. Car insurance will protect you from financial losses in case any damage happens to the car.

If you can spend so much money to buy a car then it will not hamper your pocket to buy car insurance additionally. But most of the people think that nothing will happen to them or their car. They are so much assured about the future that they think buying car insurance is a waste of money. But according to the data provided by the government more than 1.5 lakhs people died in a year due to road accidents. So, anyone who is thinking that he is immortal then they are just in phantasm. They have to realize that life is precious and they must have to take some steps to keep it secure. In this case, car insurance will play a vital role because an accident can’t be predicted.

Some Important tips that will help you to buy correct Insurance: There is a list of features you can avail while purchasing insurance but they will also cost you high. Also, buying an insurance plan with a low premium will not solve your problem. It will not cover all types of damages and customers can also face trouble in claiming. So, we are providing some features of car insurance that are compulsory to check if you are going to take an insurance policy for your car.

  • When anyone wants the utmost security then surely, they will not look whether the premium is high or low, overall, they want the maximum coverage to consider all the damages. Further, if you don’t want to pay too much for insurance premiums then you can determine your minimum requirements.
  • These days everyone is tech-savvy, so it is better to check the process and features online rather than sticking to a single company. Maybe the other company is providing more useful features at the same price.
  • Look for the network garages for that particular company, whether they are available nearby your location or not. What are the services they are providing and how much time will they take for providing service?
  • Prefer to purchase the insurance plan online, as it is the easiest and fastest means to get the confirmation. Purchasing online will immediately insure you without any hassle. 
  • If you are already a vehicle insurance holder and have frequent claiming records, it will increase your premium amount.
  • If you have more than one car at your house. Then go for a bundled insurance plan as it will help you to get discounted premiums.
  • Ask for the exclusions otherwise, it will surprise you at the time of claiming.
  • A good insurance provider will try to maintain its customers by reminding them of renewals so that the policy doesn’t get lapsed.
  • Check the claim settlement ratio of the insurance company, it will give you a lumpy idea about the history of the insurance company.
  • The best and the convenient option for claim settlement is the cashless settlement. As it will pay off your bill in no time so choose for the company that provides cashless settlement.

Factors that can affect a Vehicle Insurance Premium: The insurance premium of vehicles are decided by the insurance company depending on the value of the vehicle, age of the policyholder, your driving skills, state you are living and many other features. If the car is expensive then you have to pay a higher premium because the parts for a luxurious vehicle are equally overpriced.

Gender and Age: For young male candidates the range of premium is a little bit higher than for female candidates. On the other hand, the premium for old aged men is lower than women. The difference in prices is not too extreme and can be easily paid off.

Credit Score: Credit score is a vital part of insurance, as poor credit score will lead to the cancellation of the policy. Some insurance companies can’t check for the scores, but others will consider this as an important factor to determine the premium. If you have a low credit score then you have to pay a high premium.

Driving History: Every insurance company will consider the previous claiming history while renewal. If the frequency of claiming is too frequent then you might have to pay high premiums. A smooth driving or person with no claiming history has to pay a regular premium. Further if the policy is too old, then this point will not be considered by the companies.

The Profession of the Insured person: Any individual whose profession is more likely to get in an accident then the premium cost increases gradually like for delivery persons, truck drivers and journalists. Apart from these, for other people’s they will offer regular premiums.

Residential State of the Policyholder: Too much traffic on the road is the main reason for accidents in cities, so the premiums specified for different states are different. The state with more accidental reports or theft reports such as metropolitan cities has high premium rates.

Nature of driving: the type of vehicle you are using and the purpose of driving will also affect your premiums. Rental cars have experienced drivers, so they are at lower risk to get in an accident. business commuters have to drive through a long route so they are at higher risk.

Apart from all these factors, the location to keep your vehicle will also matter. If you keep your vehicle in the proper garage then there are less chances of theft, but if you just keep it outside your house or on the road then someone can easily steal it.

Paying a car insurance premium is a major part of owning a car, so don’t miss any chance to lower the rate. A low premium process will be beneficial for your pocket and also keep you safe at the time of any mishap.

Do you know Why Auto insurance is important?

Vehicla insurance why

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.