How Well Do You Understand These Car General Insurance Terms?
A car general insurance policy can be hard to buy if you have no idea what you're getting, what you want, and how to interpret your policy. That's not hard to figure out, don't worry. You will be able to choose the best insurance plan for yourself if you know the terms associated with auto insurance.
Motor insurance plans include many terms. As you compare your options, you will discover more and more. Furthermore, you need to know all your basics to avoid getting lost when you buy your general insurance services. Listed below are a few motor insurance terms you should know before you begin to shop for a policy.
Comprehensive policy
A comprehensive motor insurance policy covers both third-party liability and own damage. Car general insurance covers damages caused by accidents, theft, ignition, total damage, etc. The policyholder can opt for this option, even though it is not lawfully mandated. But it offers more advantages than the other two options. Personal and commercial policies are available.
No Bonus Claim
Consider the case where you have owned your motor insurance policy for a year and you have never filed a claim since your car never sustained any damage or only had small out-of-pocket expenses. Your motor insurance policy is a year old but you have not filed a claim because your car was not damaged or your out-of-pocket costs were small. Either you will receive a discount or your policy amount will increase. Your insurer will tell you if there is a limit to this bonus.
Insured Declared Value
Insurance companies will compensate you for the loss of a car caused by theft or damage sustained in an accident. The amount you can claim will vary depending on your insurer. Motor insurance companies decide the IDV amount when you buy the policy. Your car's value will determine the cost of insurance.
Cashless claim settlement
You don't have to pay a deductible upfront when you file a cashless claim settlement. However, this does not include certain mandatory payments. Your insurer has a network of garages with which you can use cashless claim settlement.
Add-on Coverages
Comprehensive car insurance offers decent coverage at a reasonable price. However, you can choose to add on add-on benefits or riders if you want to expand your coverage. You can purchase extra covers to protect your car in more niche situations. Such covers come at an additional cost.
Here are some of the coverages you need to know
Accidental injury coverage
Generally, your basic auto insurance policy includes personal injury coverage. If you suffer an injury or encounter a severe circumstance that may result in death or permanent disability, this insurance protects you. Under certain conditions, you can receive compensation up to Rs.15 lakhs. Your nominee will receive 100% of this amount if you die.
Roadside Assistance Cover
Roadside assistance provides you with on-road help and includes minor repairs, flat tyres, and breakdown support over the phone, towing, etc. Your insurance company or the garage in their network will refer you to the nearest help if you need such assistance.
Zero Depreciation Coverage
A zero depreciation cover, also known as a nil depreciation or bumper-to-bumper policy, guarantees that you will receive compensation for your depreciation. However, this cover is only valid for vehicles that are at least 5 years old. This policy does not apply to older vehicles.
Buying motor insurance online will allow you to learn more about different terms. Online car insurance allows you to explore at your convenience, and then, by the time you purchase a plan, you will understand the majority of motor insurance terms.