Auto Insurance

Auto Insurance
What is it: Auto insurance(also known as Motor insurance or Vehicle insurance) protects you against financial loss if you have an accident. It is a contract between you and the insurance company. You agree to pay the premium and the insurance company agrees to pay your losses as defined in your policy.

Auto Insurance
Auto insurance provides property, liability and medical coverage: Property coverage pays for damage to or theft of your car. Liability coverage pays for your legal responsibility to others for bodily injury or property damage. Medical coverage pays for the cost of treating injuries, rehabilitation and sometimes lost wages and funeral expenses.

Auto Insurance
Why do you need it?
There are really 3 main reasons you need auto insurance:
1. Its the law in most states. Hefty fines, loss of your license and even jail time can result if youre caught without auto insurance. 2. Youll set yourself on a clear path to bankruptcy without coverage if your unintentional actions behind the wheel cause injury or death to another human being. Causing property damage with your vehicle could also land you in the poor house if you dont carry auto insurance. 3. You need to protect your hardware investment and the loan you acquired to make that investment. In other words youll still be responsible for getting from point A to point B when you dont have your car. And likewisethe bank will expect that youll continue to make the payments as well.

Auto Insurance Law In India

Auto Insurance in India is a compulsory requirement for all new vehicles used whether for commercial or personal use. The insurance companies have tie-ups with leading automobile manufacturers. They offer their customers instant auto quotes. Auto premium is determined by a number of factors and the amount of premium increases with the rise in the price of the vehicle. The claims of the Auto Insurance in India can be accidental, theft claims or third party claims. Certain documents are required for claiming Auto Insurance in India, like duly signed claim form, RC copy of the vehicle, Driving license copy, FIR copy, Original estimate and policy copy.

Minimum amount of Liability

This is an all inclusive cover of all risks covered in the Motor Vehicles Act , plus loss or damage caused to the vehicle due to: Accident, Fire, Explosion, Self-Ignition, Lightning, Burglary, Theft, Riots & Strikes, Earthquakes, Floods, Typhoons, Hurricanes, Storms, Cyclones, Malicious Acts, Terrorism or while in Transit by rail/road, air or waterway. Also included is the towing charge (up to Rs.1,500/- for private vehicles and Rs.2,500/- for commercial vehicles ) incurred in transferring a damaged vehicle to the workshop. Cover for an owner driver is also included to an extent of Rs.2 lakhs in the event of death. Permanent disability is covered too but the extent of compensation depends on the kind and extent of disability. Damage caused to any third partys property is also covered. The minimum coverage by law is to an extent of Rs 6000/-. The cover is capped at Rs 7.5 lakhs. The extent of this cover may vary between these two figures and it is recommended that the purchaser inquires which is applicable when evaluating a proposal. Injuries to any person other than those in the vehicle are covered under the third party clause. The extent of cover in this case is unlimited.

What is Third Party insurance?

Third Party insurance covers: Personal injury to and or property damage of, as the name suggests, a third Party. A purchaser of this kind of cover does not have any protection for himself or the vehicle owned by himself. However he is buying insurance to cover his liability in the event of causing injury or damage to the property or person of any other. Therefore this means that the purchaser is insured against death or injury (caused by his vehicle) to pedestrians, occupants of other vehicles , and outsiders other than passengers, for unlimited amounts. Passengers of private vehicles and pillion riders are also deemed covered. It also includes death or injury (caused by your vehicle) to the vehicle's drivers, cleaners, conductors, coolies, employees used in the operation of the vehicle.

Your Auto Insurance Policy

What will your policy cover?
1. 2. 3. 4. 5. 6.

Bodily Injury Liability Medical Payments or Personal Injury Protection (PIP) Property Damage Liability Collision Comprehensive Uninsured and Underinsured Motorist Coverage

Your Auto Insurance Policy

Bodily Injury Liability This coverage applies to injuries that you, the designated driver or policyholder, cause to someone else. You and family members listed on the policy are also covered when driving someone elses car with their permission. Its very important to have enough liability insurance, because if you are involved in a serious accident, you may be sued for a large sum of money. Definitely consider buying more than the state-required minimum to protect assets such as your home and savings.

Your Auto Insurance Policy

Medical Payments or Personal Injury Protection (PIP)
This coverage pays for the treatment of injuries to the driver and passengers of the policyholder's car. In some cases, PIP can cover medical payments, lost wages and the cost of replacing services normally performed by someone injured in an auto accident. It may also cover funeral costs.

Your Auto Insurance Policy

Property Damage Liability
This coverage pays for damage you (or someone driving the car with your permission) may cause to someone else's property. Usually, this means damage to someone elses car, but it also includes damage to lamp posts, telephone poles, fences, buildings or other structures your car hit.

Your Auto Insurance Policy

Collision
This coverage pays for damage to your car resulting from a collision with another car, object or as a result of flipping over. Collision coverage is generally sold with a deductible of $250 to $1,000the higher your deductible, the lower your premium. Even if you are at fault for the accident, your collision coverage will reimburse you for the costs of repairing your car, minus the deductible.

Your Auto Insurance Policy

Comprehensive
This coverage reimburses you for loss due to theft or damage caused by something other than a collision with another car or object, such as fire, falling objects, missiles, explosion, earthquake, windstorm, hail, flood, vandalism, riot, or contact with animals such as birds or deer. Comprehensive insurance is usually sold with a $100 to $300 deductible.

If you have a car loan, your lender may insist you carry it until your loan is paid off.

Your Auto Insurance Policy

Uninsured and Underinsured Motorist Coverage
This coverage will reimburse you, a member of your family, or a designated driver if one of you is hit by an uninsured or hit-and-run driver. Underinsured motorist coverage comes into play when an at-fault driver has insufficient insurance to pay for your total loss. This coverage will also protect you if you are hit as a pedestrian.

Factors that affect Auto Insurance

Characteristics of your car

Value of car Repair record of your car

Your personal characteristics

Your age Your mileage Your driving record

Contd.
Your location Discounts Your school performance

Comparing premiums among insurance companies

Always obtain several different quotes Several Web sites offer quotations Compare prices at renewal time

THANK YOU