Things That You Need To Know About Auto Insurance :

Posted by-Kalki Team

Auto insurance is mandatory for all two-wheeler and four-wheeler owners in India. Driving without auto insurance is dangerous and can cause catastrophic harm.

There are several types of auto insurance policies that are available across the globe. In India, however, there are only two types: Third Party Insurance and Comprehensive Insurance.

Both kinds of auto insurance have their own advantages and disadvantages, and it is up to vehicle owner to make the right choice. And actually, it is not too complicated as there are only two kinds and owning either kind is mandatory.

Premium :

Owners opting for auto insurance have to pay a specified premium amount to companies on a yearly basis. Premiums are calculated based on vehicle age, condition, model, price of vehicle and a few more factors. Currently, the premium amount is regulated by the IRDA and most companies have almost identical rates.

Coverage :

When choosing an auto insurance policy, it is important to know what all is covered. Various auto insurance policies provide coverage only to a limited level. It could offer protection against natural causes or damages inflicted by other people.

Exclusions :

In every auto insurance policy there will be a few exclusions involved. Basically exclusions are things that a policy owner cannot claim for. Here are a few common exclusions by auto insurance companies: damage caused in an intoxicated state, causing an accident without a driving license, wearing down of parts and a few more.

Claims :

Auto insurance gives you the opportunity to claim for damages and if you do not there is a No Claim Bonus as well. This No Claim Bonus can be availed as a discount for next premium. It is common practice to take care of small damages and not to use claim and avail the bonus. For expensive and major damage, it makes sense to claim it from the auto insurance company.

Documents :

When claiming for damages, the owner will have to produce certain documents for the insurance company. You will need a photocopy of the vehicles registration, valid insurance policy along with a police FIR. After all of this, you can rest assured your vehicle will always be in safe hands, provided you do not forget to keep renewing your auto insurance.

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