Car Insurance includes any or all the light motor vehicles that are used for personal purposes. Insurance for cars come in two types namely,

Type - A: This type of insurance covers all the damages that might have been caused to a third party due to an accident involving the motor vehicle. Any monetary compensation that needs to be drafted in that direction is attributed through this type of insurance.

Type - B: This type of insurance covers not only damage to the owner's motor vehicle but also includes any damages included in Type - A. Hence, this categorization is broader in prospective. Any additional liabilities can also be included if this kind of insurance is availed.

When a car is insured with any one of the above two types, a certificate of Insurance is issued. This certificate is the only evidence to prove that the car is insured and hence should be kept with care. A certificate of Insurance is known to get backdated when the time period of the insurance expires. It needs to be constantly from time to time to keep the insurance policy intact.

When a car is insured, the liability amount is dependent on the value of a similar second hand car in the market. The insurance amount paid to the owner is the lesser of the value of the car or the amount for which it has been insured. In case of an accident, the insurance company pays for the damaged parts along with the labor cost involved in getting those parts replaced. The premium that needs to be paid in lieu of the insured car is proportional to the corresponding usage of the car.

The various categorizations for which the insurance can be claimed by the owner of the vehicle are theft, fire, accidents, any malicious activity, natural calamities like earthquake, floods etc. The policy does not pay under cases of depreciation or wear and tear. Other aspects included are conditions of drunken driving, non-registered driver etc. All these categorizations are taken very seriously by the insurance providing companies.

In the event of an accident including the motor vehicle, apart from the precautionary steps that include calling the police and making available medical aid to the victims, the car should be kept safe from any further damage. The insurance company is likely to get the unit inspected in order to calibrate the amount of damage encountered.

When filing for the claim, the following steps have to be undertaken:

• The car insurance agent needs to be contacted. It is advised to call soon after the accident has occurred so that he / she can take the necessary steps in the right direction.

• Understand what needs to be done on your behalf in order to successful claim the insurance amount. There are different forms and documents that might be needed to support your claim.

• All expenses should be recorded as they too would be paid for by the car insurance providing company.

• It is important to keep a copy of the paperwork that is done on your part as they come in handy later.

By keeping the aforesaid things in mind, one should have no problems in getting or claiming the insurance amount in case of any unwanted or undesired event.