Your question: How does motor insurance work?

What is covered under motor insurance?

It covers the vehicle for damages against accidents, fire, natural disasters, theft among others and also covers for any injury to the owner. It also covers any damages and injuries caused to the third party.

How does insurance work in a car accident?

Typically, if you get into a car accident, the at-fault driver’s insurance pays for the damages and injuries. … If you get hit by a driver with no insurance or not enough liability coverage, your uninsured or underinsured insurance will kick in and help cover your medical expenses.

What is not covered by your motor insurance policy?

Any damage to the car due to war, terror attacks, invasion, foreign enemy action, civil war, mutiny, rebellion, hostilities, radiation or nuclear material/weapons are not covered under a standard motor policy. … For instance, engine damage due to hydrostatic loss during monsoons is a common consequential loss.

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Will my insurance pay if I am at fault?

In most states, if you are at fault for an accident you (or your insurance company if you have liability coverage) will have to pay for the losses of the other driver, passengers, and anyone else harmed by the accident. Losses include things like car repairs, medical bills, lost income, and pain and suffering.

What are the 3 types of motor insurance?

There are three main types of car insurance:

  • Third-party.
  • Third-party, fire and theft.
  • Comprehensive.

How is sum insured decided in motor insurance?

The Sum Insured under a Motor Insurance policy reflects the value of the motor vehicle determined based on the concept known as Insured’s Declared Value. Insured’s Declared Value is the value arrived at based on the Manufacturer’s present value and depreciation based on the Age of the Vehicle.

Do I call my insurance if it’s not my fault?

Yes. Regardless of fault, it is important to call your insurance company and report any accident that involved injuries or property damage. A common myth is that you do not need to contact your insurance company if you were not at fault.

What should you not say to your insurance company after an accident?

Avoid using phrases like “it was my fault,” “I’m sorry,” or “I apologize.” Don’t apologize to your insurer, the other driver, or law enforcement. Even if you are simply being polite and not intentionally admitting fault, these types of words and phrases will be used against you.

How do car insurance companies pay out claims?

If your claim is approved, you’ll receive payment for the amount of the loss as determined by the insurance company. Depending on what the insurance claim entailed, you might receive the payment or the insurance company might send it directly to any vendors involved in the loss, such as a car mechanic.

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What can car insurance protect you from?

Auto insurance is a contract between you and the insurance company that protects you against financial loss in the event of an accident or theft. … Auto insurance provides coverage for: Property – such as damage to or theft of your car. Liability – your legal responsibility to others for bodily injury or property damage.

Is plastic covered in car insurance?

A normal standard motor insurance policy covers damages to the vehicle minus depreciation on some replacement parts such as plastic, rubber parts, tubes and tyres etc., basis the age of the vehicle. … This depreciation in value is fixed irrespective of the age of the vehicle.

Is short circuit covered in motor insurance?

In this way, if your car is damaged because of short-circuiting or overheating, then it is not considered as real fire and the claims for it are not accepted by the insurer. Therefore, damage or loss to your car because of fire is covered under the comprehensive plan.

What to do if someone hits your car and drives off?

Don’t leave the scene or move your car. Locate the person who hit your car and exchange information (if possible) Take photos and contact the authorities to file a police report. Contact your insurer and file a claim if necessary.

Can I be sued personally for a car accident?

You have the right to sue the driver personally for your damages. The problem here is that most uninsured drivers don’t have the money or assets to draw upon during a lawsuit. Even if you win, you may not be able to recover much.

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Will my insurance go up if someone hits me?

Naturally, most injured victims that contact our firm want to know about the financial consequences of the collision. A common question that potential clients ask us when they call is whether their car insurance rates will increase as a result of the collision – even if they weren’t at fault. The answer: no.