5 Benefits of Car Insurance
As per Motor Vehicle Act, a Third Party insurance is compulsory and you must purchase one whether you buy a new or a used vehicle. You may purchase a comprehensive cover as well.
The former type of insurance protects you against financial and legal liabilities towards a third party. On the other hand, A comprehensive insurance policy provides cover to your vehicle against damage due to accident, fire, theft, cyclone, flood etc. Along with this cover, it covers any third party liability .Here are five major car insurance benefits.
1. Damage or loss to insured vehicle
In case your vehicle is damaged due to an accident, fire, or self ignition, you are protected. Furthermore, if the car suffers losses due to burglary or theft, strikes, riots, or terrorism, your insurance policy covers these. Another benefit of car insurance is that it covers loss or damage while in transit by rail, inland waterways, air, road, or lift.
2. Personal accident cover
Another advantage of car insurance is that it offers personal accident cover for a pre-determined amount. Personal Accident cover provides protection against permanent total disability, Death due to an accident. Furthermore, this cover can be taken for other passengers on unnamed basis (maximum as per the vehicle’s seating capacity) for a pre-determined amount under the car insurance policy.
3. Large network of garages
HDFC ERGO Car Insurance maintains a large network of garages across the country. This ensures you receive cashless services in all these locations, in case the need arises. This feature makes it convenient to avail of repair services in case of any damage to your vehicle.
4. Third party liabilities
If your car is involved in an accident that results in damage or loss to the property of any third parties, it is covered under the car insurance. Furthermore, if you face any legal liabilities in case of any bodily injury or death of a third party, your car insurance protects you against the same.
5. No claim bonus
One of the major advantages of having car insurance is the no claim bonus (NCB). Customer is eligible for this benefit for every claim-free year. This may be available as a discount on the premium, which makes car insurance even more affordable.
Here are two factors you must consider while choosing a car insurance amongst various insurers.
1. Quick and hassle-free process
When you choose to buy a car insurance policy, it is important that you do not have to undergo a long and cumbersome procedure. The entire process must be simple, quick, and convenient. Furthermore, choosing an insurer that offers the additional convenience of purchasing the policy online is recommended.
2. Customer support
A reliable and reputed insurance company hires trained and experienced personnel to help resolve all your queries. Insurance companies also offer live chats to ensure your issues are resolved without any delays.
Having a car insurance policy gives you complete peace of mind. You are assured that you will face no financial difficulties in case of any loss or damage to your vehicle or to third parties.
Car Insurance Coverage: Auto Coverage Types & More
With so many different coverages, it’s hard to know what’s right for you. Understanding the different types of coverages can help you find the right car insurance policy for your needs and budget. Learn about types of auto insurance coverage with GEICO.
What is car insurance?
Car insurance helps provide financial protection for you, your family, other passengers, and your vehicle. You can choose the amount of protection by selecting your coverages and limits. An auto insurance policy can provide coverage for:
- Accidents
- Liability
- Medical expenses
- Property
- Vehicles
Understanding Your Auto Insurance
Your auto insurance policy consists of multiple coverages that provide protection in different situations involving your vehicle. Coverages have different limits and may have deductibles. Specific coverages and limits may also be required by a lienholder or lender.
To better understand your policy, there are several insurance terms you should know:
- Coverage: protection and benefits provided to you
- Limits: maximum amount of protection for a specific coverage
- Policy: contract between you and your insurance company
- Premium: price of your insurance policy
- Deductible: portion you pay out of pocket, if you file a claim
When you compare car insurance rates, make sure they’re for the same coverages, deductibles, and limits. Shopping for car insurance is easy and fast with GEICO. Learn more about how auto insurance rates are determined.
Types of Car Insurance Coverage
First, let us clarify that there’s no such thing as “full coverage.” Some people may say “full coverage” means the minimum liability coverages for their state, comprehensive coverage and collision coverage. But it could also mean something else. Ultimately, you should choose the coverages that are right for you. “Full coverage” is an insurance myth.
What are the different types of coverages? Auto insurance includes liability coverages, vehicle coverages, coverages for yourself, and other optional coverages.*
Liability Coverages
Liability Coverages include:
- Bodily Injury liability: pays damages for bodily injury or death resulting from an accident for which you are at fault
- Property Damage liability: pays for damage to someone else’s property resulting from an accident for which you are at fault
For serious accidents, you want enough insurance to cover a judgment against you in a lawsuit without jeopardizing your personal assets. Therefore, it’s a good idea to have the same level of bodily injury coverage for all your cars. You may also want to consider an umbrella policy which provides additional coverage for more serious accidents and lawsuits.
Medical Coverages
- Medical Payments coverage: may pay medical expenses related to a car accident
- Personal Injury Protection coverage: may pay for your medical treatment, lost wages, or other accident-related expenses regardless of who caused the accident
Uninsured Motorist Coverages
- Uninsured Motorist coverage: may help compensate you for your injuries or property damage caused by a driver without insurance
- Underinsured Motorist coverage: can protect you from at-fault drivers with insufficient insurance coverage to pay your claim
Vehicle Coverages
- Collision coverage: may pay for damage to your car when it hits, or is hit by, another vehicle or other object
- Comprehensive coverage: may pay for damage to your car from theft, vandalism, flood, fire or other covered losses
You may be able to lower your premium if you select a higher deductible. If you have an older vehicle you may want to consider whether you need these coverages as they are normally limited to the cash value of your car.
Additional Auto Insurance Coverages
There’s a lot to learn about auto insurance coverages. If you have questions, contact our licensed insurance agents at (800) 861-8380.
How much car insurance do I need?
The right amount of auto insurance coverage comes down to your needs, budget, and state requirements. Some things to keep in mind when choosing your coverage are:
- Which coverages and limits does my state require for all drivers?
- Does my lienholder have coverage requirements?
- Do I need to protect any other assets, such as my home?
- How much can I afford to pay out of pocket at any given time?
- What is my vehicle worth now?
We recommend checking your state insurance minimums and reviewing all coverage options to make sure you have the right coverage. Our Coverage Calculator can help you find the right amount of coverage and the right deductible to fit your budget.
Why should I buy my auto insurance from GEICO?
Five reasons to buy an auto insurance policy from GEICO:
- 97% customer-satisfaction rating**
- Contact us 24/7/365
- Easily manage your policy on the GEICO insurance app
- You could save up to 15% with our cheap car insurance rates
- Multi-policy discount when you combine home and auto insurance
Please note:
The above is meant as general information and as general policy descriptions to help you understand the different types of coverages. These descriptions do not refer to any specific contract of insurance and they do not modify any definitions, exclusions or any other provision expressly stated in any contracts of insurance. We encourage you to speak to your insurance representative and to read your policy contract to fully understand your coverages.
*Some discounts, coverages, payment plans and features are not available in all states or all GEICO companies. Coverage is subject to the terms, limits and conditions of your policy contract.
**Customer satisfaction based on an independent study conducted by Alan Newman Research, 2020.
Why should I pick GEICO for my auto insurance?
It’s simple, really. Low rates, great customer service, and exceptional financial strength—that’s why!
Low Rates And Great Discounts
GEICO’s cheap car insurance rates and discounts could save you 15% or more.
These are just a few of our car insurance discounts:
- Multi-car discount
- Discount for cars with air bags and other safety features
- A discount available to most members of organizations on this list
Excellent Customer Service
According to a recent survey,* 97% of our policyholders were satisfied with the service they received.
- Service by phone or online—even on holidays
- Claims settled quickly and fairly
- Local GEICO Insurance Agents
Exceptional Financial Strength
- GEICO will have the resources to pay your claims
- GEICO is a wholly owned subsidiary of Berkshire Hathaway, Inc. and has assets of over $32 billion**
Learn more about GEICO’s financial strength.
Need more reasons? See for yourself how GEICO stacks up against other insurers when you compare car insurance.
Types of Vehicle Insurance Policies
We offer insurance for just about anything that moves you. Whether you’re on the road, the trail, or the water we’re here to help you get the type of vehicle insurance you need.
Auto Insurance
For 85 years, GEICO’s been providing affordable car insurance with outstanding customer service. Come see why your neighbors insure their vehicle with us.
- New customers report average annual savings over $500*
- 97% customer satisfaction rating**
Motorcycle Insurance
Sometimes two wheels are better than four, but before you hit the road see how GEICO could help you save money on motorcycle insurance.
- Make sure you have the coverages you need
- Discounts that mean more money in your pocket
ATV Insurance
Don’t know much about ATV insurance? You can learn about it and see what GEICO has to offer. Get a quote and make sure you and your ATV are covered.
- Make sure you and your ATV have the right coverage
- Multi-Policy discount with ATV insurance and a GEICO automobile or RV policy
RV Insurance
Having an RV or travel trailer provides the freedom of knowing where you’ll rest your head at night, but these unique vehicles come with challenges a normal car doesn’t have. Get the right coverage for your investment with a specialized policy at a great price.
- Specialized RV customer service
- Save money by doing what you already do
Boat/PWC Insurance
When you choose GEICO for boat insurance, you can relax knowing you’re covered. GEICO Marine Insurance Company provides great rates and outstanding customer service.
Collector Auto Insurance
Whether you call it classic car insurance or collector car insurance we know that your car is one of a kind. Get a GEICO Classic Car Insurance quote and see how we can help protect your investment.
Mexico Auto Insurance
Did you know if you drive your car in Mexico, you need a separate Mexico car insurance policy? Get a quote, choose the policy that’s right for you, and buy online.
- Flexible policy terms include daily, 6-month, and annual
- Policies are also available for your toys like ATVs, UTVs, or Watercrafts