Why is it mandatory to have Vehicle insurance?

Vehicle insurance is an integral part of your motor. Although, it's a recurring annual expense, you can make a huge savings in the annual premiums. Hence, it would be a good idea to be well aware of the nitty-gritty of such motor policies.

There are two types of vehicle policies: Third Party & Comprehensive vehicle policy. Third party refers protection cover for the damage done to a third party into an event of an accident, such as injury or death or damage to his or her property – on account of any accident caused by your vehicle under Third Party insurance. It also includes personal accident cover for the owner-driver. However, it doesn't cover any damage to your motor. As per the law, it is mandatory to hold at least third party cover to driver your motor on roads.

 A comprehensive is a protective cover for your vehicle as well. It will provide you both third party and own damage covers. Taking cover for own damage is not mandatory but it will be proves quite helpful as it takes care of your financial needs during emergency. Therefore, it is advisable to cover for damages to own the vehicle too. The risks covered are natural disasters such as earthquake, flood, storm, etc. Man-made disasters such as accident, theft, fire, riots, malicious act, etc.

Every vehicle is insured upon a value based on the manufacturer's price of the vehicle minus the depreciation as per the vehicle's age known as Insured Declared Value. The damage to third party property is covered up to a sum of Rs 7.5 lakh for car and Rs 1 lakh for two-wheeler. And there is no such limit on the cover for injury or death to the third party.

The premium on your Vehicle Insurance policy is determined on various factors like model, capacity, age, fuel type, city you stay in, your age, profession, security aspects, claim experience and lastly modifications made/accessories added to the vehicle.

One of the most common ways to save premium is the No Claim Bonus (NCB), where you can get a discount on your premium if you haven't made any claim in the prior years. These discounts can be increased with each successive year of zero-claim and goes up to as high as 50% to 60%. It is advisable don't claim for petty dents or small scratch and utilized your No Claim Bonus, instead accumulate these bonuses and utilized for higher discount premiums. Another way to reduce premium would be installing safety devices, having membership of an automobile association, choosing higher deductibles, parking in garages or safe area, etc.

Many van drivers and commercial vehicle owners often rely heavily on their vehicles as a source of income. For this reason it is important that you look after your vehicle well and make sure you are sufficiently insured should anything go wrong.

One of the most important factors of insuring your commercial vehicle is making sure you have the right cover for you vehicle and it's intended use.

Most commercial policies will not automatically provide cover for any goods or tools in your vehicle. "Goods in transit" insurance can normally be purchased separately and added on to your existing commercial insurance. Note that the amount insured may be a limited sum for each vehicle and will base on the value of the contents. Goods in transit insurance will provide cover for:

Theft (while in transit)

Loss (while in transit)

Damage caused by accidents during transit

Damage caused during transit

You can always enhance the protective cover by opting for add-on to insure for risks that are not covered under a standard policy. Some common-add on would zero depreciation, no-claim bonus, hospitalization, etc. Some insurance companies offer the cashless facility if the vehicle is repaired at their authorized garages. Else, you can repair at your preferred garage and then claim reimbursement from the insurer.

There is some standard exclusion such as normal wear and tear, mechanical or electrical breakdown. If the person driving the vehicle doesn't have a valid license or driving under the influence of alcohol or drugs, you may not be able to claim vehicle insurance. You can change your vehicle insurance provider without losing the benefit of any no-claim bonus that you may be eligible for..

Source: [http://www.articlesbase.com/finance-articles/why-is-it-mandatory-to-have-vehicle-insurance-7480242.html]

Good Vehicle Insurance Shoppers Shop Smart, Not Hard

You've unquestionably heard people marketing the idea of understanding how to work wise, easy. In present day hi-tech world those who are still chugging in the speed of hard labor are likely to end up left out! Understanding how to work wise comes with some benefits, you need to admit. Particularly when you are speaking about finding out how to reduce your vehicle insurance rates.

Not so long ago, looking for a vehicle insurance policy would be a giant discomfort. You needed to get the telephone and see a real estate agent. You needed to talk with the agent. Then you definitely needed to sit around and watch for-ever that can be a vehicle insurance agent spent half the meeting off and on the telephone together with his Other boss attempting to hammer the particulars from the deal they are likely to have the ability to provide you with. The procedure might take days, throughout that you simply were not getting a great deal done.

Advertisement:

It's no surprise people did not get it done anymore compared to what they absolutely needed to.

Nowadays, the web is altering everything. The whole vehicle insurance business continues to be refurbished. Vehicle insurance information mill maintenance motorists everywhere while using energy of multiple branches and also the amazing abilities presented through the web. This means that clients in most 50 states convey more options than ever before if this involves their auto insurance-and since there's more competition, auto insurance minute rates are remaining lower at very cheap prices.

The issue is, the quantity of competition available on the internet has managed to get to ensure that it's almost not worth remaining having a company for a long time the way in which people accustomed to. Wish to guess why? Because vehicle insurance information mill constantly having to sweeten their enrollment deal to lure new clients into having them playing. Consequently, these clients enjoy lower vehicle insurance rates than individuals clients who've been using the services of the organization for a long time.

If you made the decision to search for new vehicle insurance rates every few years you'd finish track of a much better deal in your insurance than you'd have experienced under other conditions. And since these businesses are actually out on the internet rather than holed in their high towers it's simple to collect large amounts of quotes. All you need to do is complete their digital form and submit. You will have quotes relaxing in your email mailbox within hrs.

If you want to look wise you'll consider utilizing an online quote service that actually works with multiple vehicle insurance companies. When you are jumping from business to business, even on the internet, you are still going to need to complete the forms again and again again. Utilizing an online quote service you can acquire a number of quotes after completing just one form-a great deal in whatever way you need to view it.

If this involves finding ways to save cash on auto insurance you need to shop wise, easy. Once you have mastered that you will have mastered the skill of locating the insurance coverage you'll need in a cost you really can afford.

Source: [http://findcarinsurancequotes.blogspot.in/2015/03/good-car-insurance-shoppers-shop-smart.html]

Buying a best car insurance - Car loan or full cash payment?

Planning to buy a new car? First step is buying a car is deciding the model. There are many Indian and foreign car makers launching 2-3 new models every year. So finalizing a model is not an easy task. Get advice from friends and relatives, read online review, if time permits, take test drives.

Once the model is decided, next barrier is payment. Now most of the private and public banks offer up to 85% of the total amount as loan, that also at attractive rates. Also some accumulate cash over time to fulfill their wish; they prefer to go for full cash payment, mainly to avoid paper work and the interest payment.

In this article, we are doing some rough mathematics to see how much you would be overpaying if you are taking loan instead of cash payment. As we mentioned, it is a rough calculation, not all factors are covered.

Suppose the cost of the car you are planning to buy is Rs. 5,00,000(5L) and you are availing a loan of Rs. 1, 00,000(1L).

So the EMI with interest rate of 10.5% for a repayment period of 36 months would be around Rs. 13,001. In 3 years you will repay Rs. 4,68,036 (36 x 13,001). So, at the end of 3 years, total amount spent on your car would be around Rs. 5,68,036. Let's consider the interest lost on the EMI paid for three years, it will come around Rs. 64,401, so total expense would be Rs. 6,32,437.

Suppose you have Rs. 4,00,000 cash in hand but put it in a fixed deposit scheme with an interest rate of 8% and then going for loan. You will be earning an interest of approximately Rs. 1,01,044 over 3 years period  for Rs. 4L you deposited. So, let's deduct the interest you earned from the expense, Rs. 4,68,036 - Rs. 1,01,044 = Rs. 3,66,992. So, total expense would be Rs. 5,31,393 if you keep 4L in FD and take 4L loan.

1L Cash & 4L loan: Total expense (after 3 years): 1L (down payment) + Rs. 4,68,036(EMI paid) - Rs. 1,01,044(interest earned from FD)  + Rs. 64,401 (Interest lost on EMI paid) = Rs. 5,31,393

If you have paid full amount during the purchase, the calculation would be:

Cash payment: Total expense (after 3 years):  1,00,000 + 4,00,000 + (Interest lost on 4L = 1,01,044) = Rs. 6,01,044

So, what is the conclusion? You can save some amount if you go for best car insurance! Interesting, isn't it? If you disagree with the calculation provided, feel free to post it in the comments section.

Disclaimer: This is just for illustration purpose only, please check with your bank for the latest interest rate and other terms and conditions.

Source: [http://www.texient.com/2009/08/buying-car-car-loan-or-cash-payment.html]

Do You Need Full Coverage Car Insurance?

If you have ever bought or shopped for car insurance, you may have heard or saw the term "full coverage". Essentially, full coverage is having a policy which exceeds the minimum, and carries all the basic types of car insurance. The tricky thing about it? It's completely optional to have. To drive in the U.S. you are only required to carry the minimum. Just like an extra credit assignment though, opting for full coverage could be well worth it.

So What is Full Coverage Exactly?

Full coverage car insurance is a policy that includes bodily injury liability (BI), property damage liability (PD), under/uninsured motorist insurance (UMI), collision, comprehensive and sometimes personal injury protection insurance (PIP). Those are all various parts of car insurance, each covering different things, for different people. Let's break it down.

BI and PD are liability insurances, which are used to pay for other people's damages. BI takes care of their injuries while PD takes care of any car or structure damages. Only another driver can file a claim through them; their sole purpose is to ensure if you crash into someone causing damage, you can pay for it.

The second part of full coverage is collision, comprehensive, and PIP . These insurance types are considered "first party benefits" and they are meant for the policyholder to pay for their own damages. Collision will cover you from having to pay for damage to your own car, even if you were the one to cause the damage. Comprehensive coverage includes damage to your car that is caused by an external force, such as a storm, vandal, or errant baseball. Personal injury protection is used to pay for your own medical bills, if you are injured in an accident

Why You Should Consider Full Coverage

No one likes to think about getting into a car accident, but it is important to be prepared--especially for the aftermath. The post-accident time can be incredibly stressful, more so if you are dealing with injures. You need to file claims, get damage appraised, deal with adjusters; a process that can be easier or harder depending on the type of coverage you have.

If you only have basic insurance, then you will need to file a claim through the other driver's insurance company. This process can take months to sort out, and may require a lawyer, which comes with hefty fees. All the meanwhile, you will have to pay out of pocket for any expenses until you settle the claim. In the end, there is still a good chance you won't even get the exact amount you wanted.

If you have full coverage, however, any injuries you sustained would be taken care of through your PIP, while damage to your car would have been taken care of through your collision insurance. Both claims would not require any fault to be proven, since it is your own policy, through your own company. So, while getting into an accident is rare, when it does happen, full coverage will make the process much smoother.

Unfortunately, It Isn't Exactly Cheap

Overall, we found the national price for full coverage. For one, setting a higher deductible for collision and comprehensive is a way to reduce your monthly payments. Secondly, you can reduce your premium through discounts. Discounts for being a good student, being a safe driver, or having another policy with the insurance company are just a handful of discounts that can reduce your premium by as much as 20%.

Lastly, and perhaps the easiest thing you can do, is to shop around. Car insurance prices can differ by thousands of dollars just within a single city. There are so many companies, each with their own pricing methods, the odds are that whatever you are paying now can probably be found at a cheaper price in your neighborhood.

Source: [http://www.huffingtonpost.in/entry/do-you-need-full-coverage_b_11818966]