Auto Insurance

Auto insurance also known as vehicle insurance, gap insurance or car insurance is insurance purchased for cars, trucks, motorcycles, and other road vehicles. Its main use is to provide financial protection against physical damage and / or personal injury caused by traffic accidents and liability that might arise from it. Specific terms of auto insurance vary according to the regulations in each country.

In many countries it is compulsory to have auto insurance before using or carrying a motor vehicle on public roads. Most region relate insurance to both car and driver, however the degree of each varies greatly.

Several countries have experimented with a “pay-as-you-drive” insurance that is paid through a tax on petrol (gasoline tax). This will address issues of uninsured drivers and responsible based on the miles (kilometers) driven, which theoretically could increase the efficiency of insurance, through streamlined collection.

Also, some countries offers auto insurance with the insurance covers loss of or damage to vehicles or their parts due to natural and manmade. It provides accident cover for individual owners of the vehicle while driving and also to passengers and third party legal liability. There are certain general insurance companies also offer online insurance for the vehicle.

Auto insurance in most countries is a mandatory requirement for all new vehicles used for either commercial or personal use. The insurance companies have tie-ups with car manufacturers. They offer their customers instant auto quotes. Premium Auto is determined by a number of factors and the amount of premium increases with the increase in the price of the vehicle. Claims for car insurance can be accidental, says the theft or third party claims. Some documents that are required for auto insurance claim are claim form, duly signed, copy of RC of vehicle, copy of driver’s license, copy of FIR, the original estimate and a copy of the policy depends on the country.

 

These are different types of auto insurance:

Luxury car insurance – Private Car Insurance is the fastest growing sector as it is compulsory for all the new cars. The amount of the premium depends on the brand and the value of the car, the state where the vehicle is registered and the year of manufacture.

Two Wheeler Insurance – Two Wheeler Insurance under the Auto Insurance covers accidental insurance for the drivers of the vehicle. The amount of the premium depends on the showroom price of the current multiplied by the depreciation rate set by the Tariff Advisory Committee at the time of beginning of validity of the policy.

Commercial Vehicle Insurance – Insurance of commercial vehicles under the auto insurance provides coverage for all vehicles that are not used for personal purposes, such as trucks and HMVs. The amount of the premium depends on the price of the car showroom at the beginning of the period of insurance, vehicle make and place of vehicle registration.

Auto insurance generally includes:

Loss or damage by accident, fire, lightning, self ignition, external explosion, theft, burglary or theft and malicious act. Liability for third party injury / death, third party property and liability to paid driver in the payment of appropriate additional premium, loss / damage to electrical / electronic accessories

In most cases auto insurance does not include:

Consequential loss, depreciation, mechanical and electrical failures and failure or breakage.

When the vehicle is used outside the geographical area.

War or nuclear perils and drunken driving.