If you are buying a car, it is necessary to get a car insurance because it is mandatory. Car insurance allows you to reduce your loss when the car gets damaged or stolen by covering it for you. The amount of car insurance depends on the basis of the declared value of the card that you are buying. If the IDC is high, the premium insurance value also gets high. And if the IDC is low then the premium insurance value also gets low.
Importance of Car Insurance
Car insurance helps you to recover money when the insured vehicle is damaged or stolen. Apart from that it also covers for financial liability which might be there due to injury or death of a third party. It covers personal accident. Car insurance helps to reduce the financial burden from the person who is suffering the loss.
Different Types Of Car Insurance Coverage
There are many different types of car insurance coverage. The customer can go for any of the insurance on basis of their requirement. There are three main types of car insurance:
1. Third Party Liability Coverage
It is legally compulsory to have Third Party Liability Coverage under the Motor Vehicle Act. In this insurance you get coverage when you cause damage to the car of a third party. One needs to be on the driver seat when the car is damaged to get insured under this coverage.
2. Collision Coverage
In collision coverage, the insurance company pays for the damage to your car in case of a collision. This insurance covers the damage done to a car during accident.
3. Comprehensive Coverage
It is an extensive car insurance that covers the damage when your car meets an accident, or is stolen. It also covers third party legal liability. The comprehensive coverage is the most popular coverage.
What Are The Things That Are not Covered In A Car Insurance?
Not all kind of damages of the car are covered under the insurance policy. The following things are not covered under car insurance:
• Damage done to a car when the policy is not in force.
• Wear and tear of cart or its part that occurs gradually.
• When there is a car damage or loss of it when the person was driving without a driving license.
• Damage to the car when the driver was intoxicated because of drugs, alcohols and other such things.
• Damage done to the engine of a car because of oil leakage.
Other things depend on the guidelines of the manufacturer. The above mentioned points are the most common ground because of which a person doesn’t get the coverage of insurance.
What Are The Documents Required For A Car Insurance?
Following are the requirements which are needed for getting your car insured:
• Proposal Form
• Photostat copy of Registration Certificate
• Photostat copy of previous insurance policy.
The person also needs to fill other information in the form given by the insurance company.
This covers all the information about the insurance of the car.