Car Insurance Day: Importance, Purpose & Importance For Any Car Owners

When is Car Insurance Day

Car Insurance Day takes place on February 1st with a mission to buy comprehensive car insurance that protects your car from any man-made or natural calamities like terrorist attacks, theft, riots, earthquakes, cyclones, hurricanes, etc.

Car Insurance Day

All Information related to the Car Insurance Day Event, Date, Day, Significance & Observed countries is given below.

Car Insurance Day Significance

• Car Insurance Day is a real celebration!
• For many people, thinking and talking about their car insurance is more like a punishment than a party!
• Once a year it takes a moment to review the policy and for others the rest of the year. Have you ever imagined not having car insurance?
• Your car has been damaged and you are not able to fix it without insurance.
• Even though the claim amount for insurance is about 50% cost of the car, insurance companies make a good amount of profit.
• This is because many people don’t claim their insurance, or worse they try to claim and due to some reasons are not able to claim the amount.

Car Insurance Day History

• There is no particular history behind celebrating Car Insurance Day
• Car Insurance Day has been set aside for you to pull your documents out and review them.
• Make sure they are up to date and full of all the coverage that you need.
• You can take some time today to shop around and get new quotes.
• Your circumstances may have changed through the year so what you are paying now may not be the best price you can get.

Car Insurance Day Importance

• Insurance companies verify if the accident has been done by the owner/third party etc.
• This is done usually by the police and then they send a letter to the insurance company.
• Although third-party liability insurance is required by law, you can also purchase comprehensive insurance for your vehicle that provides coverage for third parties in addition to your own.
• Having comprehensive auto insurance is the ideal choice, but it is imperative that you understand the risks covered by this type of insurance so that future claims are not denied.
• Read on to learn all the risks that comprehensive insurance covers.
• Comprehensive car insurance usually provides coverage for damage to your car caused by man-made damage, natural disasters, or theft.
• It also covers personal injury or property damage, death, or disability to third parties.
• This type of insurance compensates by providing necessary coverage, thus reducing financial liability. Insurance covers theft, fire, vandalism, riots, etc.

Car Insurance Day: Purpose For Car Insurance

• Insurance claims can be of two types: cashless auto claims and motor vehicle compensation.
• Cashless Auto Claims, as the name suggests, the entire claims process is cashless.
• This means that the damage amount is settled directly between the insurance company and the workshop, so you don't have to spend anything out of your own pocket.
• Motor Vehicle Compensation, as the name suggests, is a form of compensation for the amount of damage, and you can pay for the repair costs first and pay them later.
• Refund requests can be made by filling out an application form and submitting the required documents such as bank account details, FIR copy, proof of identity, and proof of address.
• Comprehensive insurance is more expensive than third-party insurance, but it is best to insure your car with this type of policy that provides comprehensive coverage.
• Insurance companies will only make a claim if you have comprehensive car insurance.

Car Insurance Day: Benefits of Car Insurance

Before proceeding with the billing process, it is important to note the following:

1. Report auto insurance claims in a timely manner usually within 48 hours.
2. However, each insurance company has its own set deadline for claims.
3. Please provide the registration number of the parties to the accident.
4. Take video or photographs of the scene of the accident for an expedited claim.
5. Please provide details of witnesses at the scene of the accident.
6. We recommend filing a claim for minor dents or scratches.
7. This is because it may affect the cumulative no-claim bonus.
8. Do not move the vehicle until the police complete the claim.
9. Car insurance helps in emergencies if your car is involved in an accident.
10. In exchange for your car insurance premium, you can receive car insurance benefits.
11. Whether you damage your car or damage a third party or property, you can get compensation by filing a claim.
12. Compulsory liability insurance helps protect yourself from damage you cause to third parties or property.
13. Comprehensive insurance protects your vehicle and third parties.
14. Car insurance companies generally do not have such a specific limit on the number of claims that can be filed in a year.
15. This means that you can make as many claims as you want based on the damage you have caused.

• Too many claims can increase your premium and you will lose any NCB rebates applied to your premium.
• If you have additional non-depreciable coverage on your car, the number of claims you can make in a year depends on your insurance company.
• Roadside assistance, on the other hand, has a limit on the number of times it can be billed.
• At renewal, the insurance company may also limit the number of times a claim can be submitted, depending on previously filed claims.

Car Insurance Day: Important Tips For Having Car Insurance Day

Here is a quick story on how having car insurance helped one of person:

• Recently, a few months back, me and my friends met with an accident.
• My friend was driving and he saw a dog cross the road, and he was driving at 60 mph.
• The road was a 2-lane road with no dividers in between.
• In that instance, he chose not to drive over the dog so he suddenly moved towards the left, where there was a huge bump and that caused the car to roll over thrice.
• All I could hear at that moment was my friend’s screams.
• The roll took about 30 seconds to bring the car to a stop.
• And in those 30 seconds, the car was total upside down.
• My friend had broken the glass on the door and got outside the car.
• Then he helped the remaining four of us to get out of it.
• We somehow how managed to get help from the local people there, they offered us water to drink and also called the local police for capturing the entire event.
• One of us was hurt in the back and was bleeding continuously.
• He was not able to walk, so we carried him and put him in another friend’s car.
• We rushed to the nearest hospital to get first aid.
• But by the time we got there, we realized that the hospital was closed.
• We then decided to go to the city believing there would be multiple hospitals that would be open and we could easily admit him in one of those.
• After leaving the hospital that was closed, we got a call saying that that hospital is not closed and we had to get inside through the ambulance entrance. So, we returned to the same hospital and checked in through the back door of the hospital.
• After reaching the hospital my friends were given treatment and we stayed in the hospital till the morning.
• After leaving the hospital, we had to go to the nearest police station for claiming the insurance.
• After viewing the evidence, the police signed a letter through which we could apply for car insurance.
• When we called up the insurance company to claim our insurance, we were told that we could only claim up to 80% of the costs, which was funny by the way was almost the cost of a new car.
• That’s how much of a lifesaver insurance is. Then we had it claimed and it took about 3 months to fix the car.
• Even though there are a lot of processes for claiming the insurance and also paying for it every year, not knowing if we will need it.
• It is definitely a must because you never know what comes next.
• Imagine having to pay for the accident, it would have been impossible.
• That’s where the insurance company helps us.

A lesson we learned from this is always getting your insurance. And that insurance saves the day.

Summary

Car insurance day is a day that should be very much celebrate for many reasons that includes financial safety, health safety etc.

Car insurance is always a life saver.

Car insurance claims usually need to go through a series of checking and verification before it can be claimed. Usually, a letter from the local police station would be enough for claiming the insurance.

Always keep your insurance in hand and always be a safe driver.