Automatic Car Insurance: Why is it Important?
Know the reasons for why do you need insurance for automatic cars. Understand Now..!!
Automatic cars are becoming popular among car buyers due to their ease of operation. There is no manual shifting of gears, and their advanced features offer a comfortable experience to the drivers. Like your manual car, automatic cars are also required to be insured. The insurance coverage offers you financial aid against any damage or other potential risks to your car. In this article, we will learn about the importance of having an insurance policy for automatic cars, the factors that impact it, and the types of coverages you can get in your policy.
Table of Contents
What is Automatic Car Insurance?
An automatic car insurance policy is designed for those who own an automatic car or vehicle, i.e., vehicles with automatic transmissions. Although the policy for automatic cars is not much different from manual transmission cars, there are certain specific considerations that are applicable to automatic cars. For example, the cost of transmission repair in automatic cars is higher than in manual cars, and your policy provider may consider this while fixing a premium. A car insurance policy provides you with financial coverage in case of accidents, damage, theft, etc.
Types of Coverage for Automatic Cars
You can find a number of insurance coverages for your automatic car. The popular ones are mentioned in the table below:
|
S.No. |
Type of Coverage |
What Does it Offer? |
|
1. |
Third-Party Liability Insurance |
This is the most common form of car insurance. It covers injuries caused to third parties or damage caused to their property or vehicle in an accident. |
|
2. |
Stand Alone Own Damage Insurance |
This policy covers the policyholder’s car repair and damage cost from man made and natural disasters. This also covers theft, vandalism and total loss of the insured car. |
|
3. |
Comprehensive Insurance Coverage |
This policy offers you enhanced protection. It covers both third-party liabilities and damages to your own car due to accidents, fire, natural disasters, theft, and more. |
|
4. |
Personal Accident Coverage |
It provides financial protection in case of injury or death of the policy holder in an accident. |
|
5. |
Collision Coverage |
It covers the cost of repairs of your car if it gets damaged during a collision. |
|
6. |
Zero Depreciation Cover |
This is a popular add-on. It ensures that you receive the full value of parts replaced during repairs, without calculating depreciation cost. |
Benefits of Insurance for Your Automatic Car
Buying an insurance policy for your automatic car offers you multiple benefits:
Financial Coverage: An insurance policy covers your expenses in the event of any mishap, hence protecting you from sudden financial crunch.
Legal Compliance: It is mandatory as per the government regulations that you must have third-party liability insurance coverage for your vehicle.
Offers Peace of Mind: Having an insurance policy for your automatic car will assure you of financial protection in the time of emergencies, thus giving you peace of mind.
Covers The Costly Repairs: Automatic cars are based on advanced technology, and therefore, their repair costs are generally high. A comprehensive insurance policy helps you cover these expenses.
The Add-On Benefits: You can enhance the coverage of your policy as per your requirements. Add-ons like zero depreciation, roadside assistance, and engine protection give a broader coverage.
Factors Affecting Automatic Car Insurance Premiums
There are several factors that may affect the premium costs of your automatic car insurance. Most prominent ones are:
|
S.No. |
Factor Affecting Your Premium |
How Does it Affect? |
|
1. |
Your Driving History |
A safe driving history can lower your premiums whereas a record with accidents or traffic violations may increase them. |
|
2. |
Age and Model of Your Vehicle |
Advanced models, luxury or high performance automatic cars can attract more premium due to their high repair costs. |
|
3. |
Mileage and Usage |
The frequency and the number of Kms your car is driven also affects premiums. Higher mileage often leads to higher insurance costs. |
|
4. |
Coverage of Your Policy |
If you opt for any add-ons, this will directly impact your premium amount. |
|
5. |
Geographical Factors |
Premiums may vary based on the location you live. Urban areas with high traffic congestion may have higher premium rates. |
|
6. |
Number of Claims Made |
Your overall claim history also has an impact on your policy premium. The more claims you make, the higher will be your premium next year. |
FAQs
- Which has higher cost, insurance for automatic cars or manual cars?
- The insurance for automatic cars can be slightly higher due to their advanced technology, although the difference is not much.
- How do I claim the amount if my car gets damaged in an accident?
- You should apply for the claim with your insurance provider. Make sure that you have all necessary documentation to avoid rejection of your claim.
- Is there any way to minimise the premium for my automatic car?
- You can reduce your premium by maintaining a good driving record, keeping your car in good condition, and timely renewal of your policy to avoid any penalty fees.
