Car company insurance
It is obligatory on the part of the person who buys a car to get it insured. As per the law, no car can be driven on the road without insurance and if a person still drives it, he has to face the penalty or other such punishments as has been given by the law. Also, these vary from one state to another. So, car insurance is must for any car owner.
GETTING CAR INSURED
There are many car insurance companies in the market that insure the car. These insurance companies can be in the privately sector or state owned . Apart from these, the car company, from which the car has been bought, also helps a person in insuring the car as these are having tie-ups with the different insurance companies. There is a certain amount that a person is required to pay to the car insurance company and this amount is called as premium . Let us now discuss the various aspects of the car company insurance .
VARIOUS ASPECTS
There are basically two ways in which a person can get his car insured. The first way is called as the act only insurance. In many countries, it is also called as the Third party insurance. The second way in which a person can get the car insured is the comprehensive car insurance . If a person wises to fulfill the legal requirements only by way of insurance, first type is sufficient. However, it is not advised except in few cases .
Act only risk or the third party insurance is a way of getting the car insured where the person is liable to pay the appropriate compensation for any type of injuries or death as well as the damage of the car to the third party i .e. any other person that has been hit by the car of the person who has got the third party insurance . There are various types of risks that are covered under this category of car insurance and these of course vary from one state to another, as the acts relating to the car insurance are different in each state. In this case, the insured car is treated as first party whereas the insurance company is treated as the second party . All other persons are put in the category of third party . Thus, a person himself or his car is not covered under this type of policy and in case of any accident etc.; he is not eligible to get the claim. Also, there is a maximum amount that has been fixed as the compensation. So, this type of policy has a limited scope.
The other type of insurance is the comprehensive car insurance. This is basically the type of insurance that is being done with every new vehicle . Even the car companies that get their clients car insured from the various insurance companies only get this type of insurance . The coverage provided under this type of policy is much more than the third party insurance . The coverage under this type of insurance covers the third party cover, all the risks against riots, strikes and natural calamities like floods, earthquakes etc ; and the damage or any kind of loss that has been done with the vehicle as a result of any type of theft, fire or accident. Apart from the above, a person can also get the cover for the various types of instruments fitted in the car like the air conditioner, music system, etc. Under this type of insurance, the person also gets cover for the loss damage etc brought about in the transit by road, train etc. Thus, the coverage provided is quite extensive and hence the name comprehensive. It is quite obvious that a person is required to pay more premiums in this case as compared to the third party insurance.
When a person gets his car insured by way of company insurance, at the time of buying the car, he can get only the comprehensive car insurance policy as the insurance companies do not provide for a third party insurance for the new vehicle . Even it is not advised at all. There are agents of the various insurance companies that are visiting the car companies very frequently and also upon the request made by the car company. A person must remember that there are also discount that is being provided by various car companies so as to attract customers for selling the cars. Since the premium relating to the comprehensive car insurance is a good amount, a 50% discount, as is given by many car companies, makes a good amount. Especially at the time of various festivals, this discounts are easily available as all the car companies provide different types of sops to their customers. The insurance is of course done for a period of one year and it expires at the mid night exactly after one year. So, a person should get the insurance renewed before the expiry of the insurance period .
In many cases, the car companies also act, as an insurance agent of the insurance companies and in such cases, getting discounts is even easier. This is because in such cases, the car companies are given some commission on the insurance of the car . And since the vehicle is new, the amount of commission is good one and the car companies do not mind passing some part of it to the customers who buy car from them. The higher the price of the car, the higher is the commission and the higher is the amount of discount given by the car insurance companies. Also, a person can get some discounts as no claim bonus . It is normally 20% for the first year, 35% for the second year, 50% for the third year and 65% for the fourth year and onwards . So, its favorable to get the car insured from the car companies as there are many discounts provided by these companies and the amount of premium gets reduced.
SO, GO FOR THE CAR COMPANY INSURANCE
While buying a new car, of course a person is required to get the car insured and that too, comprehensively. Since the car companies are also providing car insurance whether they act as agent of the insurance company or not, a person is able to get some discounts in the premium . So this option must be looked at by any person who buys a car .
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