Vehicles must be kept protected from possible risks and damage as much as it is useful to the day-to-day life. One can keep one’s vehicle protected from the losses occurred due to traffic accidents and against legal liability caused by an accident.
Auto Insurance, also known as auto insurance, car insurance, or motor insurance, is intended to protect and offer compensation for damage, deaths, injuries or/ and liabilities caused by the accident.
There are many Auto insurance plans available with different Insurance companies in different countries. In some Auto insurance plans, the Insurance ensures coverage of pay compensation to be the third party (the other person or persons with whom the insured involves in the accident and whose property or vehicle is damaged in the accident) on the condition that anyone is found dead or injured, or if a property is damaged by the accident. Besides Auto Insurance offers protection from legal liabilities which often result from an accident which involves his or her vehicle. In such auto insurance plans, there is no coverage of compensation to the insured for the damage to his or her vehicle.
On the other hand, in some other auto insurance policy, the insurance ensures the insured and the third party comprehensive coverage of losses, damage, injures or death, and liabilities following the accident. In such plans, the insurance covers risks, like theft and some other specified risks agreed to insured against at the time of the insurance purchase, and all this coverage is maintained effectively on the payment of a premium which is paid on different modes according to the payment modes acceptable to the Insurance companies. A comprehensive Auto policy covers the following risks.
- Third party cover.
- Loss / Damage to vehicle as a result of an accident, fire or theft.
- Risks against floods, earthquake, riots and strikes.
- Accessories like music system, air-conditioner, etc. can be covered by paying additional premium.
- Risk of loss/damage while in transit by road, rail, watercraft, air, elevator, etc
In many countries, Auto Insurance is compulsory before using a motor vehicle on public roads. India is one good example of such countries. Auto insurance is very useful to the vehicle owners who travel very often in their vehicles as many unpleasant risks are always involved in journeys whether of long distance or of short distance. Auto Insurance can be purchased through agents of insurance companies or by direct contact with the insurance companies either online or over the phone. Like other insurance, say Health, Home, Business, Life, Travel, Shop, etc, Auto Insurance involves a premium which is to paid to the insurance company by the insured for the protection or coverage of the risks for a period of time. The premium varies from one auto insurance plan to another and from one insurance company to other.
Generally, the insurance is designed for one year. As soon as the premium is paid, the insurer will maintain the protection and coverage of risks for the day the contract is made and it will last for exactly one year. It is therefore advisable to the insured to renew the insurance plan every year.
Auto insurance offers the insured discount of a comprehensive insurance, on a reduction basis in the years to come, if the insured did not make any claim for any damage or risks in the previous year. If someone has a no-claim bonus on his or her vehicle, he or she can transfer the bonus to his or her new vehicle similar type, e.g. four wheeler to wheeler. But there is a condition put before the insured by the insurer to make use of this discount. The old vehicle has to be sold off or on some one’s name, and then the insured benefited with such discounts. In case, someone has bought a vehicle which has been insured, he or she can have the insurance policy transferred onto his or her name. For the transference of the policy, he or she needs to inform the insurer about his or her owning the vehicle within a valid period agreed during underwriting.
In all, an Auto plan can have you avoid all the apprehension of the possible injuries and damage and paying for all the loss caused by accidents or knock by other vehicles onto yours while taking a drive or parking near a hotel or a theatre on weekends. It is the right time get your vehicle insured against risks and damage.
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