Car insurance: Safety net

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Forget about being in an accident for a while. Consider being stranded in the middle of nowhere with no money for fuel or to spend a night at a hotel. AP Forget about being in an accident for a while. Consider being stranded in the middle of nowhere with no money for fuel or to spend a night at a hotel. AP
SummaryDon’t get stuck in the confusing world of car insurance and claims. We give you tips and tricks to protect yourself better and save money while you do it

insurance is the more than enough. At first, it does sound like a great deal. The car is covered for damage by natural calamities, and even the third party involved in the accident is also taken care of by the insurance policy; be it the vehicle or the driver. And you also get a personal accident cover, which is a part of the insurance scheme. So, what’s missing?

For starters, did you know that engine damage isn’t covered even by comprehensive insurance? Yes. That’s right. Parts are obviously expensive and if the car were in an accident bad enough to cause engine damage, you could be looking at a hefty bill despite the protection. When you buy insurance, ask the agent if the insurance company will foot the bill if the engine is damaged in an accident. The answer will most likely be a no.

But fret not, there is a way out. By paying a little extra you can get this important part of the car insured. What you need to check is what kind of damage is covered. Damage because of water entering the engine and oil leaks should be covered too. If this happens, the insurance company will pay for the replacement or repair of the parts, although you may still have to bear the labour costs. But the latter is generally relatively lower.

Then there is road side assistance cover. Get this and there are quite a few benefits waiting. In case of a break down, your insurance company will help you get a jump start in case the battery is drained out and even help with refills if you run out of fuel. For major accidents, the insurer will even get someone to tow your car to the nearest workshop. Some insurance companies will also pay for your taxi fare to a certain distance from the spot of the accident and if it’s too late in the day, it will also take care of your overnight stay.

Another thing that you can ask for is a zero depreciation cover. When paying an insurance claim, insurance companies account for the depreciation in value of the parts. So, the amount refunded is less than the actual market value of the part. The rest is borne by the owner. In case of a zero depreciation cover, the entire cost of the parts is borne by the insurance company. Of course, this will

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