In this video, we will discuss the important things people need to keep in mind while buying car insurance for the first time
Edited highlights
0:02 In this video, we will discuss the important things people need to keep in mind while buying car insurance for the first time
1:28 Car insurance has got two parts. One is the third part liability. The third party insurance is compulsory in India
1:38 Second part is the own damage part or the damage to one's own car
1:43 When you buy both of insurance coverage, it is then called comprehensive policy or a package policy
1:50 Irrespective of the age of the car, liability policy or third party policy is compulsory
1:56 This policy is taken for any damage to any third person's property or injury or death of a third person
2:15 On your behalf, compensation is paid to the third party by the insurance company
2:22 The compensation amount is settled through the court of law
2:48 If we are driving the vehicle, or it is being driven by our acquaintances or us, but with a valid licence and it meets with an accident, the damage is covered by it
2:58 Insurance company provides the claim after deducting depreciation of the car depending on the age of the car
3:09 For a new car one should take a package policy
3:23 In the initial years, the depreciation is quite low
3:45 There is not much difference among various auto insurance policies offered
3:57 The difference in premium could at best be of a few hundred rupees
4:14 Most of the policies seem to have the same features. Insurance companies have now started offering zero depreciation or zero dep policies
4:22 In these policies, they will not deduct any depreciation since it is the depreciation that hurts the most
4:33 As a result, the premium will be slightly higher
4:44 But in case of damage to your car, the extra premium will be more than compensated
