Get your car insured

For many people, the car is the primary mode of transportation. Transportation by car has become so ingrained in our society that with rising oil prices, we complain, but still pay.

Cars don't come cheap either. A car is a major investment, and like all major investments, you need to protect it. You wouldn't want to invest lakhs of rupees into a car only to get into an accident a week later.

Auto insurance protects you and your car from the dangers of the road. An estimated 6 million car accidents occur every year, and unfortunately, many of those involved in car accidents are uninsured by auto insurance companies.

If you have a car, then you would need car insurance. The best car insurance can protect your car from any inconvenience should a likely car accident occur. But you should also be careful of what kind of car insurance you have. There are a lot of them available out there but not all can give you that coverage that you might be looking for.

As most other types of insurance available to choose from, the same thing goes with insuring your own car. There are different types that you can choose from, depending on what your needs are.

Motor insurance is divided into two parts - Policy A and Policy B. Policy A is an 'Act Liability' insurance. It is a compulsory insurance if you own a vehicle. It covers any body injury caused to a third person on the road or any damage done to his or her vehicle through an accident by your vehicle.

On the other hand, Policy B is a comprehensive cover, but it is optional. It covers additional losses such as loss or damage to your vehicle and personal accident benefit for the owner and passengers of the vehicle to the extent of sum assured.

In case of natural calamities, like floods, it pays only if you have taken Policy B. Such policies covers damage due to floods, earthquakes, fire etc. The policy also lets you take additional covers to extend the scope of items covered. These add-ons cover any loss or damage to the accessories within your car such as airconditioners, stereo systems etc.

If your vehicle is damaged beyond repair, or if it has been stolen, the claim is decided based on the Insured's Declared Value (IDV). IDV is calculated based on the current showroom price of the model of the vehicle, taking into account the depreciation rate, set at the beginning of each policy period.