Why Your Second Vehicle Needs Insurance Too
Published On Nov 17, 2020 12:00 PM By InsuranceDekho
Having multiple cars is common, but how does the insurance for them work? Do you need a separate policy for each? Read this article to find out.
A car is a pricey purchase for us all, hence we always try our best to keep it well and protect it. Buying car insurance is one way to achieve a layer of protection for the vehicle. Moreover, third-party car insurance is obligatory. However, many in India are now car owners of more than one private car. This situation brings along a number of questions surrounding insurance. In this article, we will try to answer them all.
Does the Second Car Need to Be Insured?
Yes, it is compulsory for every car to be insured with at least third-party car insurance in India. Driving without one can result in punishment of the car owner with a fine of Rs. 2,000 and/or imprisonment for up to 3 months. One car insurance does not automatically extend to the car owners other cars as the premium is decided on the specifications of the car model. However, there are several multiple car insurance policies that allow you to manage insurance from one policy. Click here to compare car insurance policies.
What is Multiple Car Insurance?
If you own multiple private cars, it can be a hassle to have a separate insurance policy for each as well as remember their renewal dates and keep their documents safely. You can pay a single premium for all your cars with a pay-as-you-drive floater insurance policy. According to IRDAI, this policy calculated premium and claim based on the usage of the car and falls under the PAy-as-you like model of the IRDAI. Click here for a list of car insurance companies.
What are the Features of the Pay-as You Drive Policy?
The following are the pay-as-you drive policy features:
- It will permit the policyholder to apply for a claim based on the usage of the car.
- The premium will be charged based on the car in question
- The policyholder will have the liberty to add or remove the vehicles covered under this policy
- The entire process will be paperless and can be settled over video conference done either by the garage or the user. Click here for information on cashless garages.
Factors That Determine Car Insurance Premiums
Benefits of No Claim Bonus Protection Add On Cover In Car Insurance
It is becoming a common phenomenon for car owners in India to have more than one car. Having insurance for each of them is mandatory and prudent. However, handling the premium, documents, renewal for each of them can become a big burden on car owners. A more hassle-free way to handle your car insurance is to have a multiple car insurance policy, that will have one premium for all your cars as well as handle the claims according to the usage of your car. Click here to get quotes for multiple car insurance.
Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.