How to Use Auto Insurance as a Cost Effective Method of Insurance?

  • Added:
    Jul 24, 2014
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How to Use Auto Insurance as a Cost Effective Method of Insurance? Photo by Akash Naidu

Auto Insurance helps the owner of the vehicle to mitigate costs when met with any accident. It prevents the vehicle owner from paying the damage costs from his/her pocket.
The insured person just has to pay annual premiums which are comparatively less to his/her auto insurance company. In return, the auto insurance company covers entire or major part of the charges incurred due to any accident or other events.
Auto insurance is a broad term used for ‘car insurance’. It’s also a broad term used for ‘motor insurance’ and ‘vehicle insurance’. This means auto insurance refers to all insurance policies bought for a car, motorcycle or a truck.
Auto insurance premiums vary depending upon factors like age and gender. It also depends on driving expertise factors, safe driving records, accidents and many other factors.
There are many people who prefer purchasing extra insurance covers to avail better protection. Bad driving records and requirement for more coverage require higher premiums.
Nevertheless, you are able to minimize the premiums by choosing certain car add-ons as well as deductibles.
Car Insurance
Prior to measuring lengths & breadths of your dreams of driving in your dream car at various locations, know one thing that it’s necessary to fulfill certain pre-requisites. With fulfilling these pre-requisites, you can’t bring your car to drive on the road.
The main 2 requirements are as follows-
It’s mandatory to buy insurance for your car
Also it’s mandatory to get a third-party insurance. Therefore, when you decide to purchase your own car at the same time also remember to get a full and comprehensive auto insurance which contains proper third-party cover.
A comprehensive cover will protect your car against all kinds of damage costs which might occur due to theft and other man-made or natural calamities or accidental events.
The physical injuries faced by self as well as third party are sufficiently covered by your insurer.
Along with third-party liability due to injuries, even the liabilities due to demise in case of the 3rd-party will be covered by your insurance company.
Remember, that compensation costs for third-party liabilities can cost you lacs of rupees.
Choose from Online
It’s advisable to go for the online car insurance plans. You receive the following salient benefits-
Free of charge online quotes
Cashless facility across network garages
Renew policies easily online
You benefit from No Claim Bonus of maximum 50% during renewal of your policy when you find absence of claim during last year.
Get 24x7 claim assistance.
Get 24x7 road-side assistance.

Author's Profile

Akash Naidu is a software Developer and he is an part time content writer writing for different areas including Insurance and Loan sectors. For more information visit: Car Insurance & Motor Insurance

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