3 Things you Probably didn't know about Auto InsuranceWhen there is a minor car accident, you avoid taking your car to a company owned service centre or a high end car showroom for repairs. Most people have always believed that taking the car to a mechanic for minor repairs is much cheaper than a proper service station. However, the services of a car mechanic do not come cheap today. A car mechanic charges a good amount of money even for taking up minor repair jobs. There are mechanics that do not use genuine spare parts while repairing the vehicle which further affects the performance of the vehicle. On the other hand, car manufacturing parts sell genuine spare parts at sky-rocketing prices making car maintenance an expensive proposition. How can you combat these issues? The answer is
car insurance. Most people do not know much about a car insurance policy and end up buying one that is suggested by a friend or relative who has bought it or by an insurance agent. Mostly, insurance agents recommend the policy that pays them a decent commission. You are advised not to fall prey to tall claims made by insurance agents and apply your own thinking when it comes to buying car insurance policy online. Here are the 3 things you must know about car insurance policy –
Zero depreciation policy
Most people with low knowledge on insurance policies usually go in for the normal policy assuming that they know a lot about it. The concept of zero depreciation car insurance policy is gradually coming to India. Let’s understand the basic difference between a normal car insurance policy and zero depreciation car insurance policy. In a normal car insurance policy, insurance company provides cover on the basis of the depreciated value of the car. However, the policy holder gets a complete cover without calculating depreciation in case of zero depreciation policy. The premium in a 0 depreciation policy is a little higher as the depreciation is not counted while reimbursing the claim. If you own a really expensive car, the decision of buying zero depreciation car insurance policy is a smarter one. You may have to pay a little higher premium but you are completely assured that you will receive a full cover.
There are people who do not know that motor insurance is mandatory in India. According to the recent statistics, more than 70% vehicles on the road including two-wheelers, auto-rickshaws and cars do not have a proper motor insurance policy. The government is currently imposing a fine of Rs 1000 to all those who are not carrying a motor insurance policy. According to a new rule, the fines are going to rise in the near future. A bike will have to pay Rs 10000, auto rickshaw drivers will have to pay Rs 25000 and car owners will have to pay Rs 60000- Rs 70000 as penalty.
Transfer of insurance
Normally, one has to transfer the ownership while buying a used car. In addition to this, it is also compulsory to get the motor insurance transferred in your name.