Why should I insure my car?
Apart from the protection against various unforeseen calamities, insuring your car is mandatory under Motors Vehicles Act. The natural calamities that are normally covered under auto insurance are following: Accident, Fire, Explosion, Self Ignition, Lighting, Burglary, House Breaking, Theft, Riots & Strikes, Earthquakes, Flood, Typhoon, Hurricane, Storm, Cyclones, Malicious Acts, Terrorism, Transit by rail/road, air and waterways and sometimes even towing charges.

What does Auto insurance protect you against?
Auto insurance is primarily of two types, namely own damage and third party insurance. As evident by names the owner damage protects you against financial losses suffered by owner on account of the car for example: repair of the cars in case of accidents (normal wear and tear not included), replacement value of car in case of theft (the car is valued at book value-net of depreciation or market value, whichever is lower)

The third party insurance covers you against the liabilities claimed by a third party for damages caused by you while driving the car. It is this type of insurance that is compulsory under Motor Vehicles Act.

What are the options available in the market?
Apart from the insurance against third party and owner damage, there are other kinds of insurances, which are bundled, together in a comprehensive package. These include personal accident insurance for the drive and passengers against death and disability.

What to look for in an auto-insurance policy?
Most of the insurance companies are providing cash-less insurance, which means that the insurer pays directly to the Garage or Service Center. Although, this reduces the headache of collecting the claims significantly, you should ensure that your favorite Service Center is registered with the insurer. And also before giving the go-ahead on repairs check on the amount approved by the insurer as balance has to be paid by you.

 How important is customer support?
With the products available in the market being more or less similar, customer support is the essential differentiator. The ease with which you can process your claims and renew your policy is easily the parameter on which you can choose your insurer. The insurance agent also plays an important role in this. Some manufacturers like Maruti are themselves facilitating insurance on their cars.

What is No Claim Bonus?
No Claim Bonus is the discount given on renewal of insurance if no insurance claims are made during the previous year. This is given by insurers to discourage people from making claims on minor damages. It can vary from insurer to insurer.

What is Compulsory and Voluntary Excess?
Compulsory excess is the minimum amount the customer has to pay in case of a claim. If the customer agrees to increase the excess amount, insurer offers discount on the premium. This is called voluntary excess.