Everything you need to know about Motor Insurance

Motor Insurance can simply be defined as a policy that is issued by an insurance company to protect general public from loss of any accident that occurs on road.It is mandatory to have one motor insurance policy for every motor vehicle owner.The primary objective of motor insurance is to provide coverage for any physical and property damages arising on account of collision/accident.It is of great benefit for insured as the company gives coverage for losses occurred to auto vehicles and its parts due to man-made activities/natural calamities.Also, it ensures you safety to vehicle driver, their passengers and also third party liability.


Motor Insurance also called as (vehicle/car/Auto Insurance) is generally purchased for trucks, car and other road vehicles.It can be described as contract between insured and insurer where both the parties are liable for their obligation.As per the norms of policy, insured is supposed to make timely payment of premium money and insurer is liable to mitigate the financial loss of insured in case of crisis. The premium amount can be paid as per the terms of the policy or insured's convenience (either monthly/quarterly/annually).Although, you may think of ignoring insurance plan, as sometimes it pinches to pay a premium when we don't require any claim.But only then you will come to know the importance of insurance, when you met with an accident.


WHAT IS COVERED IN MOTOR INSURANCE??


Every individual must consider buying this type of insurance plan, as we all are aware of fact that future is uncertain.Nobody knows what could happen in just a minute.Even a trained vehicle driver is exposed to certain risks either due to their own fault or another's fault.
Motor Insurance is basically designed to reduce insured mental and financial pressure.This type of insurance usually covers the following:-


1.Loss due to accidents caused by any natural act like flood/earthquake/typhoons/storms/cyclones etc.


2.Damage from human activities like theft, vandalism, burglary, riots, strikes, terrorism


3.While in transit by road, railway, airways or waterways


4.Provides coverage for owner driver resulting in death


5.Third party legal liability is also covered


WHAT IS NOT COVERED UNDER MOTOR INSURANCE??


Here are some points explaining what is not included in the motor insurance policy.Let's have a look:


1. Normal wear and tear expenses of motor vehicle due to usage


2.Any loss caused due to depreciation of the vehicle


3.Any electrical and mechanical breakdown of vehicle


4.Loss caused due to any racing/speed testing


5.Loss/damage occurred due to nuclear risk/war


6.Damaged caused outside the geographical boundaries


7.Any mishappening caused due to improper/ misappropriate use of vehicle other than its restrictions to use


8.Any loss incurred due to an unauthorized person driving without valid license, intoxication etc.


IMPORTANT TERMS RELATED WITH MOTOR INSURANCE:


Motor Insurance is not very complicated/difficult concept to understand.The only thing you require is the adequate knowledge of various plans and policies before you go for actual purchase.The below points are very much related to the motor insurance that will give you relevant information:


1.No claim bonus(NCB):
It is a special type of discount that is given to insured for every claim-free year.This ultimate bonus lowers the premium amount in succeeding years. NCB can be accumulated over the insurance period.It starts with 20% and can go maximum up to 50%.In case, you make a claim, it becomes nil.It is useful as NCB accumulated on an old car can be shifted to a new one.


2.Insured's declared value: IDV is that value of vehicle, which is calculated by adjusting current manufacturer's listed selling price of the motor vehicle with depreciation as per the tariff.


3.Roll over cases:
The term roll over cases means when an insured shifts his insurance premium from one company to another.This process can be termed as roll over cases.


4.Roadside assistance: Under roadside assistance, additional services like like towing, flat tire change, locksmith service is offered to insured individuals.This service can be availed by paying some extra amount of premium, if it is not mentioned in a current insurance plan.


5.Voluntary Deductible: Deductible is that amount of claim which is borne by an individual, it is not paid by an insurance company.The insured must be ready to bear the deductible amount in case if the claim is made.Or we can say that is an out of pocket expense.Generally, higher discount is offered to individuals for choosing higher deductibles.


6.Total loss: Sometimes, the damage is caused to a vehicle to such a great extent that the cost of repair is higher than its depreciated value, or even if it is stolen, then it is considered as a total loss.


7.Partial Loss: Partial loss covers those repairable losses that occur due to the insurable cause.Like theft of certain parts/accessories are also considered as partial losses.Although, accessories are covered only in private cars.

YOU REQUIRE MOTOR INSURANCE.................WHY??


The significance of motor insurance can't be overlooked as it offers variety of benefits to the insured person.In fact, it is like defense tool for the individual as it makes them feel more secure in event of loss.Following are some of the merits of motor insurance policy:


*Motor Insurance (third party insurance) is compulsory as and when you purchase a new vehicle.It may be acquired for commercial/private usage.One can be imposed to the penalty in case driving without valid cover.


* Motor Insurance plays a significant role in insured's life.As anyone can meet with an accident even if the driver is not at fault.And it may lead to huge loss of individual as well as property(vehicle).In that case, motor insurance is proved to be very beneficial.


*Sometimes, due to driver's fault, bodily injury may be occurred to the third party, in that situation expenses have to be borne by the owner of the vehicle.Thus, third-party motor insurance saves you from devastating financial the loss by paying medical expenses of the third party.


*Vehicles are an expensive investment for every individual, thus its safety can't be taken for granted.As an accident can even turn this investment into a big loss.Hence, every vehicle owner must consider this insurance plan for better security and safety of their precious asset.


*Motor Insurance not only provides coverage for accidents, it also covers losses occurred other than accident.It may be due to fire/theft/vandalism/burglary.


DIFFERENT PLANS OF MOTOR INSURANCE


There is no single option of buying an insurance policy.Nowadays, insurance companies are offering multiple variety of policies to their clients depending on their needs and requirements.Every policy has its own significance.But before taking final decision of purchasing policy, you should better know its classification.After that, you may be able to compare various plans and choose according to them. As your single decision can put you in trouble because it is of no use that you have taken policy for protection and you don't get sufficient help in the problematic situation.


In addition to offline purchase of policies through agents/brokers, customers are now provided with huge varieties of policies in the online market.With the ease of internet, you can easily purchase your policy by simply sitting at home.But it requires due research and inquiry before actual buying.
Motor Insurance policy can be divided into following types:


1.Private Car Insurance:
This coverage is essential for all the new vehicles.It is not used for commercial purpose vehicle.In private car insurance coverage, the amount of premium is determined on the basis of factors like:

  • make and value of the vehicle
  • state where the vehicle is registered
  • manufacturing year of the vehicle

2.Two-wheeler insurance: This type of insurance coverage offers protection to the owner/driver of two- wheeler vehicle.


3.Commercial Vehicle Insurance: Under the commercial vehicle insurance, insurance company covers the loss of all those vehicles that are not used for private purposes.It may include vehicle like truck, tempos etc.


4.Third Party Insurance Policy: Under this type of policy, coverage is given to the third party person who has been injured in an accident where the vehicle owner is responsible.It is significant plan as it covers the insured's person third party loss liability arised on account of an accident.According to the terms of the plan, medical expenses/damage/theft of owner is not covered.


5.Comprehensive Insurance Policy:It covers loss for fire/theft/vandalism/collision with animals/falling objects etc.This type of insurance plan doesn't provide coverage against accidents involving another vehicles or objects.Comprehensive coverage has usually less scope than collision coverage.


6. Liability only policy: This insurance coverage offers protection to the third party for bodily injury/death and property expenses.Under this, personal accident for the owner may also be included.


7.Collision coverage: This policy of motor insurance generally covers the damage caused to your vehicle,irrespective of who was responsible for the accident.This plan has usually high deductible; higher the deductible, lower the premium.


UNITED STATE TOP MOTOR INSURANCE PROVIDERS 2017


Motor Insurance policy is very necessary document for your vehicle as it will protect you against monetary loss and legal issues.It is created with the main agenda of bringing security and peace of mind to insured individual, after having met with an accident.You, as an insured, must check and compare multiple insurance providers, understand their plans and select at the end one of the best serving insurance providers.
The list given below contains top insurance companies of United State that are based on affordability, value of service and customer satisfaction.After all good company will compensate you in the time of need.And it's of no use to get the plan when you don't get enough in return. Best insurance provides relaxation to mind that you will want when encountered with an unexpected situation.


The Companies Are:-


1.LIBERTY MUTUAL
2.ALL STATE INSURANCE COMPANY
3.STATE FARM
4.PROGRESSIVE
5.GEICO
6.USAA
7.NATIONWIDE
8.AIA GROUP LIMITED
9.AFLAC
10.FARMERS INSURANCE GROUP


In the present age, every individual must go for motor insurance coverage so as to reduce future financial stress in hours of need.As getting into accident without adequate liability coverage, you could be facing high medical expenses and other damages. We can't neglect the safety of our own and our assets.Thus, MOTOR INSURANCE is of immense importance as it protects drivers on road.In fact, it can be considered as a part of our life, not as an unnecessary expense.

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