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Local Market Launch

Local Market Launch

September 23, 2020 Business

Know All Ins and Outs of Car Insurance

We spend several hours and days researching and choosing the latest model, the safety features, the vibrant colors and we love it all. But most people know less about car insurance and what it entails. To uncover all the details about the car insurance and what it includes, we have a full-fledged guide that will help you out to know aspects of car insurance and how it works. Let us shed light on the car insurance and what you have to know about it.

The basics of Motor Insurance

The main principle of car insurance’s working is the “use it or lose it”. To avail it, you have to pay a definite sum of premium either on a monthly or yearly basis. If you are lucky enough to not get into an accident, then there is no need to claim any insurance amount and you may lose the premium amount that is paid for protection. On the flip side, you will get a claim bonus that is quite a substantial amount beginning from twenty percent in the first year and increase to fifty percent by the sixth year which is why it is advised not to claim for minor damages.

How to calculate insurance policy?

IDV (Insured Declared Value) is the main base to calculate the value of the insurance policy of your car which is the maximum insured amount along with the amount that the insurer can pay. Roughly, it is equivalent to the listed price of the showroom. But the IDV of the car is not constant.

When you want to renew the car insurance policy after a year, your IDV will reduce due to the rate of depreciation that applies to the car between the one and two years old. IDV is calculated as follows:

IDV= Manufacturers listing price –Depreciation

No accessories are included in the listed cost minus depreciation. Such processes are also followed in case of any general insurance and calculations play an important role.

However, you need to keep it in mind that it is not recommended to quote a figure less than that of the real market value because you pay a lesser premium amount and you can also claim less for damages.

In addition to this, you require to renew to the policy within a specified amount of time having to pay a huge penalty. The period of this policy is ninety days.

Does that include the car insurance cover?

Comprehensive car insurance comprises different types of coverage that are available with various companies. Let us have a look at these below.

  • Loss or damage because of natural calamities

Some natural calamities are not in our hands and we can’t do anything if it affects us. Such events are out of control like floods, hurricanes, lightning, cyclone, typhoon, storm, cyclones, landslides, and earthquakes.

  • Loss or damage because of man-made calamities

Some of the events are included that are made by men like a riot, burglary, strike, theft, terrorist activity, and any damaging activity caused by road, water, transit, or rail.

  • Personal Accident Cover

Get the coverage of up to two lakhs that has caused to the driver because of traveling, dismounting, or mounting from the car.

However, if you get a reckless driving ticket, you might face some penalties of reckless driving besides jail time. For instance, chances are that your insurance premiums might increase or the providers might limit your coverage to those options that are appropriate for “high risk” drivers. So, make sure you avoid such a situation by all means.

 

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About Us

Welcome to Local Market Launch - We are Liz Beaker and Smith Johnson and our website is your one-stop-shop for everything business, marketing and finance related. You can just be starting out, or have had a business for years. We are here to share the most cutting edge, relevant and modern tips for growth, profit and sustainability. 

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