Car insurance is a security bond between the customer and the insurance company. It is a policy that helps with the financial loss incurred due to adversities faced by cars. For car insurance, one has to pay a premium amount that guarantees the continuation of the security of the car. It covers everything from medical and theft to natural disasters. One can choose the insurance as per the conditions. In many places, it’s compulsory to have car insurance.
What are the documents required for car insurance?
Like for any official work, car insurance also requires certain documents. The list of necessary documents is as follows:
- Birth certificate.
- Aadhaar card.
- Pan card.
- Driving licenses.
- Car registration number and certificate.
How to apply for car insurance.
Choose and compare different companies providing car insurance. Fill in the necessary details of the car, like the model, age, etc. And submit the necessary documents. Once done, you will have to pay a monthly premium as per the insurance. One has to renew the policy after the completion of the period.
Factors that affect insurance.
The premium amount varies from person to person. There are various factors on which insurance cost depends.
- Type of the car: The model and size of the car will influence the premium.
- Age of the car: An older car will cost less than the new car
- Geographical areas: Different areas will have different premium amounts based on the probability of accidents.
- Fuel used in the car: Fuel used affects the total cost of the car. Thus it influences the insurance amount.
Conditions under which car insurance is applied
Car insurance covers many situations.
- Third-party liability: If a person is responsible for damage to another vehicle or injury to the person driving it, the insurance policy covers the cost of the damage. Having third-party liability insurance is mandatory for a car owner. It covers the medical expenses of a person injured. It also covers damage caused to the vehicle.
- Damaged to one’s car: Insurance policy covers damage caused to one’s car during any accident. It covers for medical expenses of the people sitting in the car.
- Theft: If a person has the required insurance, one can get insurance on the theft of cars too. With the necessary documents, the cost of a stolen car gets covered.
- Disasters: If a car suffers damage due to natural disasters like fire, earthquake, and floods, one can get the financial loss covered.