Car insurance or car insurance is designed for those who want to finance a car for personal use. A car loan can give you immediate use of the vehicle of your choice in return for regular payments over an agreed period of time. Also known as gap insurance or car insurance, it is purchased for cars, trucks, motorcycles, and other road vehicles. These insurances in the form of First Party Insurance and Third Party Insurance provide financial protection against material damage and/or bodily injury resulting from traffic collisions and against liability that may also arise from such damages. It provides coverage against accidents for individual vehicle owners who may encounter accidents while driving as well as for passengers and third party legal liability that guarantees coverage for a person who may be harmed due to the accident caused by the driver. There are some general insurance companies that also offer online car insurance. In India, all vehicle owners including commercial and domestic vehicles are required by law to have insurance for their vehicles.
Factors affecting car insurance
One of the variables that affects insurance rates is whether the car is new or used. The driver’s accident track record can also be considered to repair a premium slab of insurance product. Also as the price of the car goes up, the premium fee increases considering the higher amount to be paid in the event of an accident.
Insurance application process
Once an accident occurs, the driver has to file an FIR with a local police station and then submit documents such as a duly signed claim form, RC copy of the vehicle, driver’s license copy, FIR copy, original estimate, and copy of the policy to be eligible for a claim.
Types of car insurance
Coverage paid for damage to other vehicles in an accident for which the individual is legally responsible.