What is Vehicle Insurance ?

Vehicle insurance offers financial protection against harm or physical damage brought on by car theft, collisions, accidents, and other mishaps. It is sometimes referred to as auto insurance or car insurance. Vehicle insurance is to reduce the financial risks associated with owning and driving a vehicle.

Here are the main components typically covered by vehicle insurance:

Liability Coverage: This is the most basic form of auto insurance and is often required by law. It covers bodily injury and property damage that the policyholder may cause to others in an accident for which they are at fault.
Collision Coverage: This component covers damage to the policyholder's vehicle caused by a collision with another vehicle or object, regardless of who is at fault.
Comprehensive Coverage: This coverage protects against non-collision events, such as theft, vandalism, natural disasters, or hitting an animal. It offers protection against harm to the covered vehicle that is not brought on by an accident.
Personal Injury Protection (PIP) or Medical Payments: This coverage helps pay for medical expenses for the policyholder and their passengers, regardless of who is at fault in an accident.
Uninsured/Underinsured Motorist Coverage: This coverage protects the policyholder if they are involved in an accident with a driver who either has no insurance or insufficient insurance to cover the damages.
Rental Reimbursement: This optional coverage helps pay for the cost of a rental car if the insured vehicle is undergoing repairs due to a covered event.
Towing and Labor Coverage: This optional coverage reimburses the policyholder for towing and labor costs if their vehicle breaks down.

The kind of coverage and other factors affect how much auto insurance costs, the insured vehicle's make and model, the policyholder's driving history, and their location. It's essential for vehicle owners to have insurance not only to comply with legal requirements in many places but also to protect themselves financially in the event of an accident or unforeseen circumstance.

Benefits Of Vehicle Insurance

MAIN EXCLUSIONS

Mechanical Breakdown - Your car insurance also doesn’t cover mechanical damages or breakdown of your vehicle.

Consequential Loss - Your car insurance policy also doesn’t cover damages caused by things like towing of cars during accidents.

Wear & Tear - Most car insurance policies do not cover wear and tear taking place over time. Unforeseen losses and damages are also covered.

Any Contractual Liability - covers claims against a business that arise out of its assumption via a contract of someone else's liability.

Intoxicated Driving - Damages caused due to drunk driving are not covered under car insurance. If any accident takes place when the driver was under the influence of alcohol, in that case the motor insurance companies do not offer coverage in such cases.

Deliberate Accidental Loss - No fraud or staged accidents here. We mean, don’t ever attempt smashing your car with a baseball bat. It doesn't work.
Damages Due to Nuclear Weapons Material or War - Damages caused to the car due to war, terror attack, civil war, radiation or nuclear material or weapons.

POLICY COVER

Natural Calamities - There is no doubt that natural disasters like earthquakes, floods, rain, cyclones, can cause massive destruction. It can result loss of life and properties including your car. You can protect your vehicle from damages due to natural calamities and get financial protection if you have a car insurance policy.
Loss Or Damage to Your Vehicle - In case your vehicle is damaged due to an accident, fire, or self-ignition, you are protected. Furthermore, if the car suffers losses due to burglary or theft, strikes, riots, or terrorism, your insurance policy covers these. Another benefit of car insurance is that it covers loss or damage while in transit by rail, inland waterways, air, road, or lift.
Third Party Legal Liability - If your car is involved in an accident that results in damage or loss to the property of any third parties, it is covered under the car insurance. Furthermore, if you face any legal liabilities in case of any bodily injury or death of a third party, your car insurance protects you against the same.
Protection Against Theft - Car theft is a common problem, especially in cities. Imagine you park your car outside your home and fail to locate it the next morning. Yes, that would be disastrous. There may be a significant financial loss. But you can recover the damage if you have a comprehensive car insurance policy that covers theft and loss of the car. Under a comprehensive insurance plan, the insurance company pays the IDV (Insured Declared Value) of the vehicle.
Additional Cover - You can extend the scope of your car insurance coverage by purchasing add-on covers, which are also known as riders. However, you must know that you can buy riders only if you have a comprehensive policy. There are different types of add-ons given in insurance cover that you can choose as per your needs. Some of the common add-ons that most people buy are roadside assistance cover, zero depreciation cover, engine protection cover, passenger cover, etc. You can buy any number of add-ons you want as per your need. However, the greater number of riders you buy, the higher will be your premium.
Personal Accident Cover - Another advantage of car insurance is that it offers personal accident cover for a predetermined amount. Personal Accident cover provides protection against permanent total disability, Death due to an accident. Furthermore, this cover can be taken for other passengers on an unnamed basis (maximum as per the vehicle’s seating capacity) for a predetermined amount under the car insurance policy.
Man-Made Calamities - if your car gets damaged due to any man-made disasters such as riots, strikes, vandalism and so on, then your comprehensive coverage policy would cover the same as well.