The insurance of the vehicle to protect against theft, damages and subsequent liabilities due to an
accident is vehicle insurance, auto insurance or motor insurance. The motor or the vehicle can be
any two-wheeler or four-wheeler, private or commercial. It provides you financial protection
towards the repair cost, in the event of an accident, towards purchase of a new vehicle in the event
of a theft, towards payment to third party for injuries in case of an accident involving others. It also
covers the damages arising due to man-made and/ or natural calamities such as flood, earthquake,
fire etc. However, it does not include the damages due to normal wear and tear of the vehicle, drunk
driving and usage beyond its intended use and also if driven outside the geographical area defined.
As is the case with all other insurance policies, this facility is provided to the insured after paying a
annual premium. The premium amount depends upon the age of the vehicle, its current market
value, any claim made in the previous year etc.
Different types of vehicle insurance is available,
Car Insurance (Private): Every new car has to be insured for this insurance, if it shall be used
for private purposes only. The amount of premium for availing the insurance depends upon
the make and cost of the car, region where registered, age of the car and any claim made in
the previous year. The premium amount reduces if “no claim” was made in the previous
year and this no-claim bonus increases with number of claim free years.
Motor Insurance for commercial vehicles: All the vehicle which are registered under
commercial category such as LMV, HMV, trucks, dumpers etc., which are not used for
personal purposes are insured under this category. Since these vehicles are used more than
the personal vehicles, the premium is more than that of the personal vehicle insurance.
However, this also depends upon the value, year of make, region where registered, and
Two wheeler insurance: In this category, the two wheelers, being used for private purposes,
are covered. The premium depends upon on the same factors, as above and the damage
caused due to accident, natural and man-made disasters are covered. Also covered are the
third party liability and the driver insurance.
Many people see as a dead investment, but it is always advisable to get vehicle insurance.