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What you want know about Car Insurance?

Understanding the basics of car insurance can be difficult enough, let alone understanding the lesser-known intricacies involved with the guidelines, policies and procedures of today’s insurance providers. Below, we’ve outlined some important, yet oftentimes obscure, insurance facts, so you’re “in-the-know” when you’re on-the-go.

So, in a nutshell, motor or vehicle insurance as we call it is an insurance policy that protects the owner of the car from financial liabilities if any damage or loss comes to the insured vehicle. It safeguards the interests of the vehicle owner of the car from damage or theft of the vehicle. It also provides coverage for damage caused to third party or property as in the case any other vehicle or any property of someone else. It has been made mandatory in India. Every city has a collection of brokers and agents who offer such services by charging suitable fees. If you are resident of Mumbai, you can buy car insurance in Mumbai from a known broker or agent who always you can find near Regional Transport Offices located at Tardeo or Andheri West.

It is important to know from a layman’s perspective what is motor insurance and what types of covers are being offered by Insurance companies for the protection of the vehicle or third party.

The insurance is provided in two types, Comprehensive cover and Third Party Cover.

Comprehensive coverage as the name suggests is a complete car protection coverage insurance policy. It provides cover to the vehicle in case of damage to the vehicle, loss or theft of the vehicle and it also provides coverage for third party.

A third party cover forms the base insurance policy which only covers the damage caused to the third party or the property of the third party by the vehicle.

Naturally, as the car is being protected as a whole, the insurance companies provide some add-ons also with the car insurance. A person always prefers to buy the add-ons if the value of the vehicle is on the higher side. The add-ons purpose is to increase the financial coverage provided to the vehicle but they come at the cost of paying an additional premium too. Some common add-ons on provided by the insurance companies are: One can extend the coverage for car insurance by opting for add-ons. These add-ons will increase the financial coverage but additional premium amount will be added to the base premium amount. Some of popular add-ons available with car insurance are:

Engine and Gear Box protection cover: Though these parts are located inside the vehicle, but any damage caused to them by leakage of oil, or water logging, the costs of repair and replacement is being provided if the owner of the vehicle buys this add-on.

Zero Depreciation: Every part of the vehicle has a certain value. When a claim is being raised, the depreciation is calculated on the parts and the amount is paid accordingly. If the vehicle owner opts for this add-on, the entire amount of the part is paid as a part of claim.Thanks to Online Insurance sites where you can find not only Car Insurance also Travel Insurance, Health Insurance and Home Insurance at best price.

This was posted in Bdaily's Members' News section by Roxana Mathew .