Features and factors of car insurance premiums : MeriCAR

Traffic and rising costs of car repair & service are the indicators of valuable car insurance.

Insurance for your car is set to get more expensive this year. Every car owner must know the features and factors of car insurance premiums.

Features of vehicle insurance: It is better to check online for insurance providers. There are many insurance agents approaching you at the first place. Your new car dealer may advice you for insurance. Insurance is usually expensive from a car dealer.

Read the insurance documents carefully. Car insurance has its own list of additions. Insurance policy includes damage/loss of your vehicle due to natural calamities, theft, accident and terrorist activities. By paying additional premium accessories like music system, air-conditioner, etc can be covered. Car insurance covers only book value of the damaged parts. Premiums are paid by car owner annually. The insurance company pays for cost of damaged parts which needs to be replaced and the minimum labour cost to repair car. The insurance doesn’t include major loss, mechanical and electrical breakdown. Insurance is not valid when vehicle is used outside the geographical area.

Premium determining factors: The Insurance premium rate depends on model, cubic capacity, area or locality of registration, expected usage in terms of mileage, theft rate, age of vehicle, safety threat, etc. A new vehicle means higher insurance premiums. Commercial use of your vehicle will push up the premium rates.

Insurance Claim Procedure: In case of accident, following documents are a mandate:
• Proof of insurance policy
• Original and a copy of Registration Book.
• Original and a copy of Driving License of the person driving.
• FIR in case of accident involving Third Party Injury or Damage.
• Claim form along with the original estimate of repairs obtained from the workshop.

Source: http://www.traffline.com/blog/car-insurance-must-remember-these-things/