3 Must Knows About Car Insurance


Before buying car insurance you must know about basics of it – how does it work, which coverages you can’t skimp on. Compare car insurance quotes to find the best coverage for you.

People avoid taking their car to the service center if there is a minor car accident. They believe that it is cheaper to visit a mechanic for minor repairs rather than a proper service station. However, nothing is cheap today. Even a mechanic charges a good amount for doing minor repair jobs. Sometimes, a mechanic doesn’t use the genuine spare parts while repairing the vehicle, which affects the performance of that vehicle. On the other hand, car manufacturers sell genuine parts at anexpensive cost thus making the maintenance too expensive. The only way to overcome this issue is by buying car insurance. Due to lack of awareness, people end up buying the car insurance referred by their friend, relatives or any insurance agent rather than fulfilling their own needs. To overcome this issuewhile buying car insurance you must know the following three things:

Zero depreciation

People having inadequateknowledge of insurance, usually end up buying a policy that does not provide effective coverage. The cost of your premium can be calculated from an online car insurance premium calculator. It is based on the depreciated value of the car. Azero depreciation cover allows you to receive full compensation for cost of repair of all parts and components of your car. The add-on cover increases your premium but it is a must-have if you own an expensive car.

Changing laws

Many people do not know that motor insurance is mandatory in India. Many of the two-wheelers, cars, commercial vehicles don’t have a proper motor insurance policy. Thus, the government has started imposing fines in such cases. It is also said, that the fines may rise in the future. Thus, everyone should be aware of the changing laws of the country and follow it accordingly. In addition, it is imperative to be aware of the car insurance claim process, to avoid any hassle while filing an insurance claim.

Transfer of insurance

It is also compulsory to transfer the motor insurance in your name while buying a second-hand car. It means transferring the ownership while buying a used car.

With the selected insurance company, you can shop for your car insurance or avail the claim online. In addition, you can avail cashless claims at network garages while repairing your vehicle, which means you donot need to pay any amount while repairing in those particular garages. If you repair your vehicle in a garage outside their network then you can claim reimbursement for the same.

You should also know about some exceptions, before buying a car insurance policy.

– The insurance company can reject your claim if someone uninsured is driving your car

– Owner causing the damage to the car under the influence of alcohol and drugs

– Driving without a valid license causing damage to the vehicle

– Mechanical and electrical breakdown