What do you mean by automobile insurance?
Auto insurance is a contract between you and the insurance company that protects you against financial loss in the event of an accident or theft. In exchange for your paying a premium, the insurance company agrees to pay your losses as outlined in your policy.
What are 4 main types of automobile coverage insurance?
Six common car insurance coverage options are: auto liability coverage, uninsured and underinsured motorist coverage, comprehensive coverage, collision coverage, medical payments coverage and personal injury protection.
Which insurance is best for vehicle?
Overview of Best Car Insurance Companies in India
Car Insurance Company | Cashless Garages | Incurred Claim Ratio % 2020-21 |
---|---|---|
Bajaj Allianz Car Insurance | 1024 | 68.06% |
Bharti AXA Car Insurance | 3742 | 64.27% |
Chola MS Car Insurance | 4636 | 74.30% |
Digit Car Insurance | N/A | 74.91% |
What are types of vehicle insurance?
Motor Insurance
- THIRD PARTY INSURANCE. This is the most basic form of Motor Insurance and hence, it is also the cheapest.
- COMPREHENSIVE MOTOR INSURANCE LIABILITY. This cover encompasses the Third-Party Liability coverage and Own-Damage cover.
- WHAT IS NOT COVERED.
- ECOWAS BROWN CARD.
Why do we need car insurance?
Car insurance is designed to protect you from the financial costs of an accident and anyone you crash into from the costs of repairs. It can pay for repairing the damage to a car you drive into the back of, for example.
What are the 8 types of coverage available for an automobile?
Main 8 Types of Car Insurance Coverage To Know
- Liability-Only Coverage.
- Collision Coverage.
- Property Damage Liability.
- Bodily Injury Liability.
- Comprehensive Coverage.
- Uninsured/Underinsured Motorist Coverage.
- Medical Payments Coverage.
- Personal Injury Protection.
What is the most common car insurance?
Bodily injury liability coverage
Bodily injury liability coverage (BI) is the most common type of auto insurance because it’s required in almost every state.
What is the importance of vehicle insurance?
Vehicle insurance or motor insurance is a type of insurance policy which safeguards you financially in case your vehicle (car or two-wheeler) sustains damages due to natural or man-made calamities such as earthquake, flood, lightning and theft among others.
Is insurance mandatory for car?
In India, and all over the world, getting your car insured is a compulsory by law, not an option. The Motor Vehicle Act of 1988 makes it mandatory for all vehicle to be covered under an appropriate insurance policy before they can ply on the road.
What are two types of vehicle insurance?
The two main types of car insurance policies are liability-only and full coverage. While liability-only policies just have bodily injury and property damage liability insurance, full coverage includes comprehensive and collision insurance in addition to state-minimum coverage.
What is NCB policy?
Definition: No-claim bonus (NCB) is a discount in premium offered by insurance companies if a vehicle owner has not made a single claim during the term of the motor insurance policy. Description: The no-claim bonus is a reward to the vehicle owner for prudent use of the vehicle.