WHY IS CAR INSURANCE MANDATORY?

Under the Indian Motor Vehicles Act, it is mandatory for a car owner to have a valid car insurance. Driving without a valid car insurance is an offence and can attract severe penalties and can even lead to a suspension of your driving license. There are several reasons why getting a car insurance has been made mandatory in India. Here’s a quick look at some of them.

1. It covers damages to your car

Repairing a damaged car can drain your finances quickly. Whether the damage to your car was a result of your own negligence or due to a third-party, a car insurance can help you pay for the repairs.

2. It covers third-party liabilities

If you get involved in an accident, a car insurance can help you tide over third-party liabilities and other legal ramifications. For instance, if an accident caused by you directly leads to property damage or injury of a third party, a car insurance can compensate for the injuries caused as well as for restoring the property to its erstwhile state.

3. It provides financial compensation to your family in the event of your death

If the car accident that you get into leads to your demise, car insurance can help your beneficiaries financially by providing them with a death benefit. This way, you can ensure that your family leads a comfortable life even when you’re not around.

4. It covers hospitalization expenses in the event of an accident

Not all accidents lead to death. In some accidents, you might escape with minor or non-fatal injuries. In such cases, a car insurance plan can come to your rescue. It can provide cover for all your treatment related expenses, hospitalization expenses, and cost of transportation as well.

Shopping for car insurance can be a confusing affair. But not with Elephant Insurance. Thanks to our wide-range of insurance partners, getting a car insurance plan that’s customized according to your needs is now easier than ever. By purchasing a car insurance through Elephant Insurance, you also get to enjoy an automatic home insurance plan up to Rs. 50 lakhs! That’s not all though. We also offer amazing deals at mouthwatering prices on our car insurance products.

HOW DO I TRACK MY CAR INSURANCE POLICY DETAILS?

They are available online. Many companies now have mobile apps, as well. Go to Google or your search engine of choice and put the name of your company, add .com in to the search bar, and you will find a site. You may have to create a password and perhaps even a brief profile, but that should give you future access to your policy details when you put all your policy numbers in to the app. All the details will be there, including the wording of your insurance contract itself. You can make changes on the app, and it gives you info on how to contact your company immediately via their customer service center or even a live chat room with an employee qualified to answer your questions.

HOW DO CAR INSURANCE COMPANIES CHECK YOUR DRIVING RECORD?

Every driver has what’s called a CLUE report. A CLUE report is similar to a credit report, but it shows your personal-property claims history instead of your credit history. Every claim you file on home or auto insurance will show up on your CLUE report for up to 7 years (though most insurance companies only go back a maximum of 5 years when determining your rate).

Every driver also has what’s called a MVR (motor vehicle report), which is a report of your driving history that comes from your state’s DMV. Most states report records of every violation for the past 3 years, though some go back to 5 ( though most insurance companies only go back 3 years when determining your rate).

Every insurance company will pull both of these reports before issuing a policy, so that’s how they know what is on your record regardless of the points on your license.