Why car owners must have car insurance?

For negating the financial anomalies associated with driving, like severe accidents or in case of theft or other damages, Government have made third party car insurance mandatory on purchase of cars.  Car insurance protects your car and takes care of expenditure occurring due to road accidents, theft or any other damages to your car. 

 Kinds of car insurance policy

Third party car insurance insures damage to the third party where owners themselves are responsible for causing accident.  This car insurance policy is mandatory with purchase of every new car.

Comprehensive car insurance policy is the second plan, which has a broader scope of protection for your car.  Apart from covering all benefits of third party car insurance policy, comprehensive car insurance plan covers expenses of owner as well in case of accidents and injuries.

Process of calculating car insurance policy premium

Car insurance policy premium are calculated on the basis of following criteria:-

Vital issue that is taken into account for calculation of car insurance premiums is purpose of vehicle’s use.  Vehicles used for commercial purpose have high premium and on contrary vehicles used for personal usage get very low premiums.

Cubic capacity of the car is also important which determines car insurance policy premiums.  Cars with bigger cubic capacity have higher premium in comparison to cars with smaller cubic capacity.

Area where car operates bears important effect on car insurance premiums.  The drivers of metropolitan and heavy traffic areas where incidents of robbery, theft and vandalism are high pay higher car premiums in comparison to the car owners of rural or developing places.

Value of vehicle is again one more crucial feature that determine rate of premium for car insurance policy.  High cost cars have higher policy premium in comparison to car with lesser value.

Amount of coverage admissible under car insurance policy

Car insurance claims are generally happened in case of accidents.  In accidents car insurance policy cover the expenses of replacing spare parts which are damaged and labour for repairing calculated at minimum.  IRDA issued a revised regulation, which indicated that, devaluation in any spare part will not be exercised expect in case of tyres and tubes.

Policy Bachat helps customers choose the Best Car insurance with attractive premiums in 3 easy steps.