InvestorQ : Please tell me more about auto insurance.
Swapnil Sarang made post

Please tell me more about auto insurance.

Pratik vyas answered.
3 years ago

In India, it is mandatory for all new vehicles to be insured under the Motor Vehicles Act, 1988. Do note this rule is for personal as well as commercial vehicles.

Leading automobile manufacturers in the country have tie-ups with auto insurance companies. This enables their customers to easily and quickly avail insurance for their newly-bought vehicles.

The premiums to be paid towards your auto insurance depends on various factors and they increase with an increase in the vehicle’s price.

Auto insurance generally covers loss or damage caused to a vehicle or its parts due to natural or made-made causes. These causes include fire or explosion, theft, riots, strikes, natural disasters, malicious acts, accidental damage and terrorist activity.

Accident coverage applies to the owner or driver, passengers, and even third-party legal liabilities.