Insurance In India
Not even sure what car insurance is? Let us begin by first describing the auto insurance providers in India, and discussing what insurance is, then moving to these answers. Insurance in India is a government operated industry. While the Indian government has recently allowed outside companies into the auto insurance India industry, we find that these companies are not doing as well as their nationalized counterparts. Now to what car insurance is, how do these products help protect us? Let us consider this overly simplified example: we have a car, we know what we paid for it and about what it is worth to us. We also know, statistically, how much an accident is going to cost. We decide we are willing to pay 20% of the cost to replace the vehicle as well as the amount of the cost of an accident; we often call this amount the risk that we are willing to accept. This is normally represented as a deductible. Though it should be noted that in India, the deductible amounts are mandated by law. Once we have found these amounts, we go to an insurance provider to help us in sharing this risk. This provides the core logic as to why one should purchase insurance beyond what is required by law. How much risk are we willing to accept, and how much do we wish to share with others? If we find ourselves in a position that we do not have enough insurance, we find ourselves paying the additional amount. Be sure to consider this when purchasing your Third Party Liability. Living in a region of the United States that requires Third Party Liability, which is called financial responsibility in the region in which I live, does not begin to cover the true costs of a loss. As such, I choose to purchase additional insurance which provides additional protection should I ever be involved in an accident (called a loss - as I have lost the use of my vehicle). Insurance in India, like many states, requires its citizens to protect themselves and others through the use of auto insurance. We also must realize that such a requirement does not necessarily guarantee that everyone will have such coverage. You should contact your local Third Party Liability provider to discuss this concern as well as any local legal requirements. ~ Article submitted by guest contributor J. Rockwood
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Thinking about buying auto insurance in India? 
