Get to know what Auto Insurance can offer you

Why do you need auto insurance?

Apart from fulfilling legal requirements, auto insurance ensures you can bear the cost of accident damages. In case your vehicle meets with an accident, you claim insurance instead of paying from your pocket.

Why does a deductible exist?

While buying car insurance, you are asked to choose a deductible. This is the amount you are agreeing to pay, when a loss or damage occurs and has to be paid for. When a claim is actually made, the insurance company pays a part of the losses, and you pay the deductible chosen by you. For instance, if the total repair costs you have to bear after an accident is $200, and you had chosen a deductible of $50, then the insurance company will pay $150 and the rest $50 will be paid by you.

What kind of auto insurance suits you?

While insurers sell auto insurance to you by considering various factors like — the brand, and the model of your car, what kind of driver are you, and your past car insurance history. You may choose to buy only a basic third-party cover/liability insurance, or a comprehensive car insurance policy.

What does auto insurance not cover?

While we buy auto insurance expecting that we’re going to have a reliable safety net for the unexpected. But we also prioritize a good price over what the policy covers, and end up overlooking what it doesn’t cover. In general, the following are not covered by auto insurance:

  • When the person driving does not possess a valid driving license.
  • Normal wear and tear of the car and its parts.
  • Things Stolen from Your Car (buying comprehensive coverage can cover the theft of individual things that are considered part of the car, like stolen airbags).
  • Usual depreciation on the car (buying a zero depreciation add-on can provide coverage).
  • Electrical or mechanical breakdown, and damage to engine due to oil leakage (buying mechanical breakdown insurance add-on, can cover repairs such as engine problems and air conditioning issues, and roadside assistance coverage will come to the rescue when a tow or gas is needed, or if you have locked yourself out of the car).
  • If the driver is found to be driving under the influence of liquor, alcohol or drugs.
  • Loss or damage as a result of war, mutiny, and nuclear risks.
  • If the car faces a mishap while being driven outside the country it was insured for.
  • If the car is used for any other purpose other than its intended use (an auto insurance policy is intended to cover personal use of your vehicle, such as commuting to work, going on errands and taking summer road trips). Business use of the vehicle is generally excluded from coverage.

Prevention is better than a claim

While buying a comprehensive coverage auto insurance policy seems like the best bet since it pays the value of your car even if it’s stolen — the best defense remains prevention. Some simple, easy to practice preventive steps to ensure the well being of your car, and yourself are:

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