Cheap Car Insurance
Car insurance protects the car owner from any financial loss that occurs as a result of an accident or theft. In both the UK and India, it is a legal requirement that all vehicles and two-wheelers be insured before they are driven on roads. However, there are a few differences between the insurance policies and rules in both countries. Here are some of these variations.
In India, a portion of the
motor vehicle insurance policy covering the third-party liability
has to be paid up front for three years by new car owners. For new
two wheeler-owners, they have to pay third-party insurance premiums
for five years when purchasing their insurance policies. However,
the insurance policies will be recognised on a yearly basis. The
rest of the premiums are treated as advance premium deposits. This
rule only applies to new vehicles that were bought after the 1st of
September 2018. Also, the rule does not touch old vehicle owners who
would like to renew their licences on a yearly basis.
In the UK, it is illegal to eat while behind the wheel or to have a pet in the front seat while driving the car. In addition, it is illegal to drive in flip-flops or barefoot. Failure to observe these rules is likely to invalidate your insurance policy in case of an accident. While you are expected to take reasonable measures to drive safely in India, there are no specific rules that touch on the shoes you wear when driving, where to carry your pet or eating while behind the wheel.
The Point System in the UK
If you are arrested for
committing a traffic offence in the UK, you get points on your
driving licence. These points stay on your license for between four
and eleven years. The points impact the price of your motor
insurance significantly in that the more you have, the lower the
chances of getting discounted offers from insurance companies around
the UK. If you get six points as a new driver or accumulate 12
points as a seasoned driver, your driving licence can be revoked.
Zero Depreciation Insurance Policy
Although not part of the insurance rules, you will find the zero depreciation insurance policy common in India. With a zero depreciation policy, the insurance premiums do not factor in the cost of the depreciation of your vehicle but are calculated on the initial value of the car. These insurance policies charge higher premiums than the standard policies given the depreciating value of your vehicle. On the other hand, in case of any of the insurable risks happening, you will be compensated for the value of the car at the time of its purchase.
Car Insurance Auto-renew
Unlike India, car owners in
the UK can have their auto insurance automatically renewed at the
end of the current coverage of 12 months. If you do not want to
auto-renew your insurance policy, you need to call the insurance
provider and cancel it. The law provides that the company calls you
about thirty days before the expiry of the current coverage and
inform you that they will be renewing your policy. Auto-renewals
save you the hustle that comes with the long process of renewing
your insurance policy. However, you also do not get a chance to shop
around for better coverage in terms of price and insurable risks.
Auto-renewal is not available in India unless authorised.
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