Key Steps to Buy Car Insurance

Car insurance is mandatory in India. Buy online car insurance in India at affordable premiums and flexible terms and conditions. Car insurance is an essential aspect of buying a car. When it comes to their new car, owners take all the possible efforts to decorate them and make them look presentable. However, most of them try to skip the all-important step of insuring them. According to the Motor Vehicles Act 1988, it is mandatory to have car insurance in India. It's a type of motor insurance that protects your car against the third party claims for accidents and various damages caused by natural calamities. It provides utmost protection to your cars in exchange of affordable premiums.

Understanding the Benefits and Features Comprehensive insurance covers accidental damage to the car and injury to the driver or policyholder and any third party.  Insurance coverage against theft of the car, car parts or accessories.  Personal accident coverage for the driver and the co-passenger on demand.  Comprehensive third party coverage and legal liability to their paid driver.  Additional riders according to your requirements. Including depreciation of premium on partial loss of metal or plastic parts, replacement of the car parts, no claim bonus, etc. Learning about the Types and Requirements There are two types of insurance policies, namely, third party insurance and comprehensive insurance. Comprehensive vehicle insurance is ideal since it provides protection to your car along with third party protection. You need to provide various documents that are required including car details, date and location of purchase, personal details of the car user and his driving history.

Third party insurance: Insurance against all sorts of vehicle losses caused due to accidents. It includes external and internal damage to the cars, injury or death of the policyholder or driver of the third party. This is a compulsory type of car insurance in India.  Comprehensive insurance: You need to purchase this policy to protect your vehicle against all sorts of losses including accidental damage and injuries or death of the driver or the co-passenger. This is an optional policy you can purchase depending on your requirements. Tips for Buying Car Insurance in India You can either buy an insurance policy through the car dealer or buy online insurance. A lot of insurance companies offer affordable and comprehensive online car insurance in India.

Check the following things before buying an insurance policy:  Check for the insured declared value of your car. This value is assessed by the insurer based on 10% to 15% of depreciation. Some insurers depreciate the declared value to lower the premiums.  Check for the premiums and choose a policy with affordable premiums and maximum coverage. The premium rate depends on the car type, location, declared value, percentage of no claim bonus and terms and conditions of various insurance providers.  Check for the claim settlement history and overall customer review of the car insurance provider. Look for an insurer with good track record, satisfactory customer service and comprehensive policy features. Claims and Claim Settlement Process You need to provide the registration number, name and contact details of the witnesses and FIR report of the local police in case of accidents. The cost of the claim includes salvage value, depreciation, consumables and other compulsory deductibles. In case of renewal of the insurance policy, you may lose your no claim bonus (NCB).

Loan Modification For Car Loans

Owning a car can be a great advantage, especially if you frequently travel or commute to work. However, there are times when the car loans terms don't work out due to some unexpected financial problems. This is where a loan modification can come in handy.

 With the economy crumbling in the past years, many car owners are now turning to modifications of their existing car loans. To some people, making timely payments every month is impossible. Its a good thing that most car dealers are willing to work it out with their customers or debtors.

 Finance companies and banks are not at all interested in repossessing vehicles because they need to resell it anyway. These companies don't opt for repossession, unless they have already exhausted another means to get the customer to pay. Banks don't need the cars they need the money that you've borrowed to buy the car.

 If you simply go out of your way and talk to the lender, you can arrange for a modification of your car loan. You're not only getting to keep the car, but you will also benefit from the enhanced loan terms. Besides, if you allow repossession to take place, your credit standing can be affected for several years.

 When you negotiate for modification, you will keep the car and your investment while benefiting the lender as well. The debtor (car owner) and the lending company will make a compromise. This will often lead to a reduction of the interest rate or the extension of the terms of payment.

 Oftentimes, loam modifications are related to foreclosure, but you see, it can also be applied to car loans and any other type of loan. All you have to do is to educate yourself about the available alternatives. So if you find yourself in a difficult financial situation, you can always apply for a modification.

 Car loans are very popular these days, and its the fastest way to own a car. However, you should also be responsible enough to make timely payments. Apply for a loan modification to get better terms from your lender.