Car Insurance Companies

Understanding Car Insurance Companies Mechanics

As a result of the law relating to Motor Vehicles in India, a vehicle on road is liable to charges in absence of a valid and subsisting Auto Insurance Certificate kept with other necessary documents. Auto Insurance is available in varying categories including but not limited to Third Party Liability Coverage, Collision Coverage and Comprehensive Coverage. These insurance are being provided by the car insurance companies which are operating in India at optimum prices and attractive policies.

With increasing number of people buying cars and the widespread awareness regarding the legal implications of not having car insurance, has made India a booming market for car insurance companies. These car insurance companies are looking forward to make long term relationship with car owners who will have to renew their policy every year as mandated by law. But in order to retain customers, to prevent them from transferring their policy, the car insurance companies have to make sure they have premiums lower than others companies and offer wider coverage with easier customer support.

Car insurance companies themselves pick and choose customers based on a variety of factors including the insurer’s age, his marital status, his driving record and insurance claims history. Based on these factors, the insurance company is able to envision the kind of customer the person will prove to be. For obvious reasons, a person who has no history of speeding tickets and zero insurance claims will be a better choice than one who has been in accidents and asked for claims several times in his insurance history. Besides the person, the vehicle which a person drives also determines the classification of insurance coverage and the amount one will have to pay for the same. A new and expensive vehicle will be insured for a higher amount than an old and worn out vehicle based on the risk involved.

In some instances, car insurance companies tie up with car manufacturer or dealers, which has simplified the process of obtaining car insurance for the buyer since it can be signed up for at the time of buying of the vehicle without much hassle. To facilitate this service, a number of insurance companies have also started providing insurance online to customers. Based on the required documents, the online service providers determine the insurance quotes instantly and allow the person to insure his car in lesser time.

Car insurance companies determine premium based on the details provided in the Registration Certification of the Car which mentions the model and year of manufacture of cars as well as the place where it is registered. All these factors will affect the premium a person will have to pay. Equally important is the kind of coverage a person signs up for with the insurance company. Based on the insured provision, the premium also varies. The Comprehensive coverage is more highly valued than a simplistic Third Party Liability Coverage or Collision Coverage. The car insurance companies also offer addition insurance for accessories which a person chooses to install in his dream ride.