Know when to cut coverage. Don’t strip away coverage just for the sake of cheaper insurance. You’ll need full coverage car insurance to satisfy the terms of an auto loan, and you’ll want it as long as your car would be a financial burden to replace. But for older cars, you can drop comprehensive and collision coverage, which only pay out up to your car’s current value, minus the deductible.
No. Third-Party Car Insurance is obligatory for all motor vehicles. Third party risk insurance is compulsory under the statute of the Indian Motor Vehicles Act, 1988. You may be a good driver, but it does not negate the fact, that the vehicle you drive can become the victim of a disaster that was caused by another vehicle. In such a situation, you will be grateful that the driver involved has a third-party car insurance cover that you can raise a claim on.
The practice of deferring the outlays incurred in the acquisition of new business over the term of the insurance contract is called deferred acquisition cost. Description: Acquisition costs are the direct and indirect variable outlays incurred by an insurer at the time of selling or underwriting an insurance contract (both new and renewal). The costs may be in the form of brokerage, underwrit
The Insurance Information Institute suggests that you take the amount you'd pay in one year for comprehensive and collision coverage, and multiply that number by 10. Is your car worth less than that number? Then comprehensive and collision coverage might not be a cost-effective option for you. In other words, you might want to talk to your agent about whether it makes sense to include these coverages on your car insurance policy.