Having a car, gives you comfort and convenience, but at the same time it gives you responsibilities. It also exposes you to risk on the road. From minor scratches to major mishap, unfavorable situations can come anytime and cause hefty financial loss. This is why having the right car insurance is the basic necessity.
What is Car Insurance?
Car insurance is a key financial tool that helps protect owner from unexpected losses due to whichsoever reason like theft, accident or any natural calamity. In almost every country it is mandatory for the owner to buy a car insurance from the very first day of purchase of car.
Types of Car Insurance:
- Third Party (It only covers damage caused by you to some other person or property)
- Comprehensive Insurance (It gives a wider level of coverage which includes damage to your own car, theft, and natural calamity)
Why Car Insurance?
It provides sense of financial security and peace of mind. Also, it covers repair costs and helps reduce out-of-pocket expenses. Some policies also provide add-ons (as extra coverage) like Roadside Assistance and Zero Depreciation cover.
How Car Insurance works? (Step by step guide)
- You buy a policy
- You pay premium (It renews every year)
- Any accident or any damage happens
- You give a claim request
- Inspection will be done by surveyor
- Claim settled (depends upon the Genuity of the claim)
Types of Claims
- Cashless claim (No need to pay a single penny from your pocket, insurance company will pay directly to the car company)
- Reimbursement (Firstly you pay for the repair cost and then company will refund you the amount, provided you have all the bills along with you)
How to choose right Insurance?
While selecting car insurance must-must check different insurance providers (Policy Bazar, Policy Boss, Go-Digit). Also, check policy premium, coverage and Claim settlement ratio. There are so many hidden add-ons, don’t fall for cheaper premium and thoroughly check the policy details shared by the providers.
Why Claims got rejected?
- In case policy is Lapsed (expired)
- Driver is drunk
- Driving License is not valid
- Late intimation by policyholde
- No Add-ons
