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BUILDING A BRIDGE TO YOUR FUTURE
Types of Motor Insurance
Automobile technology has witnessed rapid strides in their technological development from its humble beginnings in the late nineteenth century and a global spread through the whole of twentieth century . Travelling through car and two wheeler has become an inseparable part of life, but travel on the road comes with it’s own share of risks.
In extreme situations, automobile owners may find themselves saddled with high financial liability if proper care is not taken. What is the way out for automobile owners against such potential risks related to automobiles? What can help in such situation is a Motor Insurance. Motor Insurance deals with the insurance covers for the loss or damage caused to the automobile or its parts due to natural and man-made calamities. It provides accident cover for individual owners of the vehicles while driving and also for passengers and THIRD-PARTY legal liability.
Motor insurance can be availed in three forms
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Private Car Insurance
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Commercial Vehicle Insurance
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Two Wheeler Insurance
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Private Car Insurance - Private CAR INSURANCE should be first thing to be taken after purchasing a Car. A financial safeguard for a large variety of situations, Private Car Insurance is one of the most important purchases to make. Whether it is a natural disaster such as an earthquake or flood; or somebody damages or steals the car, a Car Insurance takes care of it all. With compulsory factors such as third-party liability, one can ensure that any damage occurred to another person’s life or property by his vehicle will be covered in a claim. You can also opt for the Motor Insurance Add-on plans, such as zero depreciation, engine & gear box protector, emergency assistance, cost of consumables etc. which enhances your coverage for better protection, in addition to your standard motor insurance policy.
Commercial Vehicle Insurance - To keep the business going, it is imperative for business owners to have the vehicles owned by them insured. General insurance providers offer packaged COMMERCIAL VEHICLE INSURANCE policies which protect businesses from potential financial loss to the vehicle arising out of accidental loss or damage, the legal liability towards third-parties for bodily injury, death or property damage on account of any accident involving the vehicle. Insurance is available on commercial vehicles like trucks, Private as well as Public Carriers, Trailers, Taxis, 3-wheeler Autos, Buses, Miscellaneous and Special Types of vehicles – Agricultural Mobile Rig, Shovels, Grabs, Tractor, and Excavator etc. Basic Motor Insurance coverage include:
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Loss or damage by accident, fire, lightning, self-ignition, external explosion, burglary, housebreaking or theft, malicious act.
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Liability for third party injury/death, third party property and liability to paid driver
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On payment of appropriate additional premium, loss/damage to electrical/electronic accessories can be covered.
Two Wheeler Insurance : As soon as you purchase a two wheeler, getting TWO WHEELER INSURANCE is a mandatory requirement as per the Motor Vehicles Act 1988 and Motor Vehicle Amendment Act 2019. It provides coverage for from any financial loss to the vehicle due to accidental loss or damage, the legal liability towards third-parties in event of bodily injury, death or property damage. It also offers coverage in event of damage due to natural calamities or manmade events.
Disclaimer: The above information is for illustrative purpose only. For more details, please refer to policy wordings and prospectus before concluding the sales.
Here are a few of the basic car insurance types, how they work and what they cover.
Liability coverage
Liability coverage is required in most US states as a legal requirement to drive a car. Liability insurance may help cover damages for injuries and property damage to others for which you become legally responsible resulting from a covered accident.
Auto liability coverage
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Auto
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Coverages
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Discounts
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Claims
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In most states, auto liability coverage is a legal requirement for driving a car. Yet the most basic policy may not provide the coverage you need if you’re in a serious accident.
There are 2 basic components of liability auto insurance
Bodily injury (BI) liability coverage
If you cause an accident resulting in injuries, then bodily injury liability protects you by paying for damages you may become legally liable for following an automobile accident. This includes paying for an injured party's medical bills and loss of income, up to your coverage limit.
Property damage (PD) liability coverage
If you cause an accident resulting in damage to another person's vehicle or property, property damage insurance pays for those repairs, up to your coverage limit. It will also provide for your legal defense if a suit is brought against you following the accident.
Minimum and maximum limits on auto liability insurance
A limit is the maximum dollar amount your insurance may pay per event. For example, if you have a property damage limit of $10,000 and cause $15,000 in damages in a covered accident, you are responsible for the excess $5,000.
If you carry only the state-minimum required liability car insurance with the lowest limits and you’re responsible for a bad covered accident, you would have to pay the balance of the claims that exceed your policy limits. It’s smart to select the highest auto insurance liability limits you can comfortably afford so you have adequate coverage if the unthinkable happens.
How much liability auto insurance you’re required to buy depends on the state where you reside. How much you buy beyond the legal minimum depends on your finances and assets. If money is tight, you might need to settle for state minimum limits, but it can be risky. If you have sizeable assets, you may want to consider higher limits, like those found in a personal umbrella policy that offers an extra layer of protection.
Liability car insurance alone does not cover your car
If you opt for liability car insurance alone, you’re legally covered, but damage to your vehicle isn’t. That could cost you thousands to repair or replace the vehicle you depend on every day. If you’re looking to cover damage to your vehicle, you may want to also consider collision and comprehensive coverages.
Collision insurance
Collision insurance may cover damage to your car after an accident involving another vehicle and may help to repair or replace a covered vehicle.
Regardless of who’s at fault, collision insurance covers you by paying for damage to your vehicle caused by:
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Hitting another vehicle or object
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Another vehicle hitting you
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Your vehicle rolling over
You're responsible for paying the deductible.
How to determine whether collision coverage is for you
While collision insurance may not be required by law, it’s a smart coverage to have. If you finance or lease your vehicle, the bank or car dealership will most likely require you to have collision coverage.
There may be a point at which it makes sense to drop collision insurance. That point will vary by driver and will be determined by the resale value of your vehicle and how much you pay for collision coverage.
Collision auto insurance: premium vs. deductible
When buying a collision coverage policy, ask your insurance agent about premium and deductible options. Your insurance premium is the amount you pay for the plan. The deductible is the amount you pay out-of-pocket for an auto repair before we cover the rest.
As one goes up in cost, the other usually comes down. Discuss your financial goals and driving habits with your insurance agent for help in finding the right balance between your premium and deductible.
Comprehensive insurance
Comprehensive insurance can provide an extra level of coverage in the instance of an accident involving another vehicle. It may help pay for damage to your car due to incidents besides collisions, including vandalism, certain weather events and accidents with animals.
What is comprehensive car insurance? It’s a coverage that can help pay for damage to your vehicle not caused by collision. Damage that comprehensive coverage applies to include:
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Vandalism
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Theft
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Accidents involving animals
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Certain falling objects, such as tree branches or debris
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Fires, civil commotions and explosions
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Hail damage and other weather events
You're responsible for paying the deductible at the time of the claim.
Adjust your comprehensive car insurance policy to fit your needs
Some policies will insure your vehicle for its actual cash value rather than for the replacement cost. That reflects the current value of the vehicle, not what you paid for it. In some states, you can purchase extra coverage, such as gap coverage, new car replacement coverage or vehicle value upgrade. These coverages offer extra protection for newer cars.
Comprehensive insurance limits
You have more options when selecting your comprehensive coverage deductible amount, which is the amount of money you pay before insurance kicks in. To lower your comprehensive coverage rate, you can choose to have a high deductible, such as $1,000. However, you need to make sure you can pay that amount out of pocket if you file a claim. A lower deductible might increase your rate, but it will cover more of your costs in the event of a covered accident.
Uninsured motorist insurance
Uninsured motorist insurance can protect you and your car against uninsured drivers and hit-and-run accidents. This coverage is often paired with underinsured motorist insurance.
If your car is hit in an accident and it’s the other driver’s fault, it’s easy to assume that person’s car insurance will pay for the damage. Unfortunately, it’s not always that simple. Although it’s illegal in most states, some people drive without insurance.
Why is uninsured motorist coverage important?
If you are in an accident caused by an uninsured driver, this coverage protects you and your passengers by paying for medical expenses, loss of income (if you can’t work) and other covered damages owed to you.
Uninsured motorist coverage is often paired with underinsured motorist coverage. Underinsured coverage is for situations where the other driver has some, but not all, of the necessary insurance to cover the damages.
Two components of uninsured motorist coverage
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Uninsured motorist property damage (UMPD): Pays for covered damages to your car or other property
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Uninsured motorist bodily injury (UMBI): Pays for covered medical expenses, lost wages and other damages experienced by you or your passengers
Outside of your car
You may also be covered even when not in your car. The bodily injury portion of your coverage may protect you if you’re hit while crossing street or riding your bike, for example.
Uninsured motorist coverage may apply to some unusual situations, too. If a thief driving a stolen car damages your vehicle in an accident, the company that insures the stolen car wouldn’t compensate you because the car was taken without consent. If the thief lacks auto insurance, you could be out of luck. With uninsured motorist coverage, your insurance company may pay the costs if coverage applies.
Understand your state’s laws
Each state has its own uninsured motorist laws. Talk to your agent if you have questions.
Underinsured motorist insurance
Many drivers choose to carry the minimum in liability coverage to save money, but this might not provide enough coverage. Underinsured motorist insurance can protect you in the event of an accident with a driver whose insurance is not enough to cover the costs.
Why is underinsured motorist coverage important?
To save money, some people choose to carry only minimum liability coverage – just enough to drive legally. This choice often leaves them underinsured and unable to pay for vehicle damage or medical expenses if they cause an accident. That’s why underinsured motorist coverage is important—it protects you from motorists who haven’t fully protected themselves.
Two components of underinsured motorist coverage
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Underinsured motorist property damage: Pays for covered damages to your car or other property
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Underinsured motorist bodily injury: Pays for covered medical expenses, lost wages and other damages experienced by you or your passengers
Understand your state’s laws
Underinsured motorist coverage is typically paired with uninsured motorist coverage, depending on the state you live in. If it’s sold separately, it may or may not be required in your state. Talk to your agent if you have questions.
Medical payments coverage
Medical costs following an accident can be very expensive. Medical payments coverage can help pay medical costs related to a covered accident, regardless of who is at fault.
Depending on the severity of the injuries suffered in an automobile accident, it’s not uncommon for health care costs to run into the thousands of dollars. This is where Nationwide’s medical payments coverage (also known as “med pay”) can really make a difference.
What is medical payments coverage?
Medical payments coverage helps pay medical costs for you and your passengers in the event of a covered auto accident. This may include hospital and ambulance bills, as well as doctor visits and other necessary medical treatments.
Medical payments complements your health insurance
It may bridge the gap by paying for services that your health insurance doesn't cover, such as dental work, specialized nursing care and chiropractic services related to a covered accident. Review your current health care coverage to determine if medical payments coverage is right for you.
Who does medical payments cover?
Some medical payments coverage extends beyond the driver and passengers. For instance, an insured person may also receive payments for injuries sustained while driving or riding in another person’s vehicle. Or a person may be covered as a pedestrian if hit by a car while walking.
Personal injury protection (PIP) vs. medical payments
It’s usually unnecessary to have both PIP and medical payments coverage. When deciding, keep the following in mind:
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PIP covers more expenses than medical payments. But it carries a deductible.
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Medical payments could be the better choice in situations that involve passengers, since they would still be considered covered if the accident was a covered incident.
For example: You’re driving and you’re in a covered accident. A friend, who is riding along, breaks his arm in the accident. Your PIP coverage may reimburse him for his medical expenses subject to your policy coverage limits.
Understand your state’s laws
If you live in one of the 12 no-fault accident states, you must carry medical payments or PIP.
PIP and medical payments coverage are both set up to pay for your immediate or short-term medical needs, so they’re considered the primary coverage – before your health insurance kicks in.
Personal injury protection insurance
Personal injury protection insurance may cover certain medical expenses and loss of income resulting from a covered accident. Depending on the limits of a policy, personal injury protection could cover as much as 80% of medical and other expenses stemming from a covered accident.
An automobile accident can damage far more than your car. Medical bills, lost wages and other expenses can add up quickly and put a serious dent in your bank account. Personal injury protection, also known as PIP insurance, can help defray such costs and even help protect your friends and family after a covered accident.
What is PIP insurance?
With standard auto liability insurance, the insurance company of the driver responsible for an accident pays the costs resulting from a covered accident (up to the policy’s limits). Personal injury protection is a “no-fault” coverage and is required in some states. "No-fault" means that regardless of which driver was at fault, some of the medical expenses for the policyholder and others in the policyholder’s car may be covered by insurance.
What does PIP insurance cover?
It may help pay a portion of medical and other expenses that result from a covered accident. This may include medical treatment of the injuries suffered by you and your passengers, as well as medical expenses you might incur if injured as a passenger in another car or as a pedestrian.
Additionally, PIP may cover:
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Service replacement of someone injured in a covered car accident
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Rehabilitation costs
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Funeral costs
Benefits of having personal injury protection
Following the initial shock of a car accident, one of the most frustrating issues can be the time it takes for insurance companies to determine blame, make payments and, if necessary, file a lawsuit. With PIP coverage, no blame needs to be assessed. If it is a covered incident, medical and lost income payments are made as soon as possible, and you deal only with your insurance company.
How is PIP coverage different from medical payments coverage?
PIP insurance is similar to medical payments coverage (med pay) but with an important difference. Med pay pays the medical costs for you and your passengers in the event of a covered auto accident, regardless of who’s at fault.
Unlike PIP, med pay doesn’t cover other expenses such as lost wages, rehabilitation services, funeral costs and services, such as childcare, that you may be unable to perform due to injuries from a covered accident.
Gap insurance
Car value can depreciate quickly, so an auto insurance settlement might not be enough to cover the cost of a loan. Gap insurance may help certain drivers cover the amount owed on a car loan after a total loss or theft
If your insured car is totaled in an accident, or stolen and unrecovered, your auto insurance may give you a settlement based on the car’s actual cash value (ACV), not what you paid for it. Since cars depreciate quickly, your settlement may not cover what you still owe on your auto loan or lease.
That could leave you with no car and a big bill to pay. Nationwide’s gap coverage can help avoid this unhappy scenario.
What is gap insurance?
Gap insurance is an optional, add-on car insurance coverage that can help certain drivers cover the “gap” between the amount they owe on their car and the car’s actual cash value (ACV) in the event of an accident. A car’s actual cash value is the car’s monetary value at the time of the accident, not the car’s original price.
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Gap coverage adds more protection to your auto policy
Gap insurance is an optional insurance coverage for newer cars that can be added to your collision insurance policy. It may pay the difference between the balance of a lease or loan due on a vehicle and what your insurance company pays if the car is considered a covered total loss. Without proper coverage, the gap between what you’ve paid and what you owe can be substantial.
Your lender may require gap insurance
If you financed your vehicle with a car loan, your lender might require loan gap insurance in addition to your collision and comprehensive coverage. If you lease your vehicle, lease gap insurance may already be included in the cost. Check your coverage paperwork to be sure.
Actual cash value determines how much your policy pays
Standard comprehensive and collision car insurance policies help pay for the replacement of your vehicle if it’s a covered total loss – up to the limits of your policy and the car’s actual cash value. ACV is equal to the cost of the car when it was new, minus depreciation for age, mileage, physical condition and other factors.
After just a year, the ACV of your car can be thousands less than what you paid for it, which can leave you with an expensive loan or lease balance. Nationwide’s gap insurance may cover some, or all, of that amount. This coverage is available in select states and applies to vehicles 6 years old or less.
Let’s say your car cost $35,000 when new, and you currently owe $30,000. If the car is totaled, the ACV of the vehicle may be only $25,000. You have a deductible of $500, so the car accident settlement is $24,500. Your gap insurance coverage may pay the remaining $5,500 on the loan instead of having to come up with the money yourself.
What does gap insurance cover?
The basic concept behind gap insurance is easy enough to understand – but what exactly does it cover? Gap insurance coverage is quite versatile, but be aware that it only covers damage to your vehicle, not other property or bodily injuries resulting from an accident. Here are a few common questions related to gap insurance coverage.
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Does gap insurance cover theft?
Yes, gap insurance may cover theft in the event your car is stolen and unrecovered.
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Does gap insurance cover deductible costs?
No. Even in the event of an accident covered by your gap insurance policy, you would still have to pay your deductible. In other words, if the “gap” reimbursement amount is $4,000 and your deductible is $500, your total reimbursement amount would be $3,500.
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Does gap insurance cover engine failure?
No. Gap insurance is only used in the event of a total loss from a covered accident, not for mechanical repairs.
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Does gap insurance cover death?
No. Gap insurance is only applicable to vehicle losses and does not cover bodily injuries, medical expenses, lost wages or funeral costs.
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Does gap insurance cover negative equity?
Yes. Negative equity is another term for the gap between what you owe on your auto loan and the car’s actual value.
Gap insurance example
Let’s say you’re involved in a covered accident and are found not at fault. Your car is damaged beyond repair and needs to be replaced. You still owe $15,000 on your auto loan, but your car’s ACV is only $11,000 (this is sometimes referred to as being “under water” or “upside down” on your loan). If you have gap insurance, it can help you cover the $4,000 gap between what you owe on your loan and what your car is worth, after your deductible. Not all drivers need gap insurance. But if you are leasing or making payments on a vehicle, you should find out if gap insurance is right for you.
Towing and labor insurance
Available if you already have comprehensive car insurance, towing and labor insurance may reimburse you for a tow and for the labor costs to repair your vehicle.
Whether you’re stuck in the snow, stranded due to a dead battery or involved in an accident, you want help — and you want it fast.
Towing coverage
Optional towing coverage provides reimbursement for towing expenses from the location your vehicle stopped. Since towing companies typically charge by the mile, this coverage could help you avoid extra cost and frustration. To add towing coverage, you must first have comprehensive coverage on your policy.
Labor coverage
Optional labor coverage covers the cost of repair at the site of your breakdown. This includes delivery and installation of the parts – not the cost of the parts.
Towing limits
Towing reimbursement is limited based on your individual policy. Talk with your agent about reimbursement amounts, number of claims allowed per year and the impact of longer-distance tows.
Roadside Assistance®
On your policy, towing and labor coverage may have been replaced by Roadside Assistance. Ask your agent. Or read more about Roadside Assistance.
Sign up for Roadside Assistance and feel more secure when you travel
Our 24-hour emergency roadside service program provides services such as:
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Towing
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A jump start
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Gas delivery
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A flat tire change
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Winching
Once you sign up for Roadside Assistance, you’ll have up to $100 in lock-out services if:
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Ignition key or fob is lost
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Key breaks off in the ignition, door or trunk
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Keys are locked in car
[1] Or $75 worth of coverage for Basic and $300 worth of coverage for Plus for Virginia. Or $100 worth of coverage for Basic for North Carolina.
[2] $600 for Virginia policyholders.
[3] Expenses covered up to 72 hours from time of disablement and shall not exceed $100/day for meals and lodging.
Each claim is handled on the basis of its individual facts and circumstances, in accordance with policy language, including applicable exclusions, conditions and limitations, as well as applicable controlling law.
24-hour Roadside Assistance services are provided by or through Agero.
Optional features details and availability vary by state. Referred to as Towing and Labor in North Carolina. Roadside Assistance/Towing and Labor needs to be added to all policies to which the policyholder wants it to apply. Roadside Assistance/Towing and Labor is not available for Named Non-Owner policies. Insurance terms, definitions and explanations are intended for informational purposes only and do not in any way replace or modify the definitions and information contained in individual insurance contracts, policies or declaration pages, which are controlling. Such terms and availability may vary by state and exclusions may apply. Discounts may not be applied to all policy coverages.
Rental reimbursement insurance
Figuring out how to get around after an accident can be expensive. Rental reimbursement insurance helps pay for a rental car if your vehicle cannot be driven after an accident.
After a car accident, it can be an expensive hassle to arrange for alternate transportation while your vehicle is being repaired.
Rental car reimbursement helps pay for a rental if your vehicle can’t be driven due to a covered collision or comprehensive insurance claim. Without rental reimbursement, you run the risk of having to pay for the rental yourself.
Understanding how much coverage you have
Your rental reimbursement amount is typically specified using a daily limit and an overall maximum amount.
For example: You need a rental car while your car is being repaired. Your policy defines rental reimbursement coverage as 30/600. This means you have $30 per day and a maximum of $600 during the entire time the vehicle is being repaired. Read your policy carefully to determine how much of the rental costs will be covered.
A lower daily limit could mean a lower premium
If a lower premium is important to you, purchase a lower daily rental reimbursement limit. With a lower daily limit, you’ll still have some rental car coverage. And the comfort knowing your out of pocket premium is a little lower.
Reimbursement for public transportation
Renting a car isn’t your only option. Reimbursement could still apply if you take the subway or a taxi to work. Talk to your agent to find out more.
Classic car insurance
Classic car insurance provides specialized coverage designed for the unique needs of vintage and classic car collectors. Find out if classic car insurance is right for you.
If you don’t currently have auto insurance, it’s crucial to get coverage as soon as possible. Get a free quote for the types of car insurance listed above so you're protected from the unexpected.
You know what’s best for your classic car under the hood, but what about the best classic car insurance? Whether it’s a muscle car, hot rod or a fully restored 1960s van, Nationwide has partnered with Hagerty to keep you covered with collector car insurance designed for the unique needs of classic car collectors.
Features of Nationwide classic car insurance by ISG
Guaranteed Value® coverage
The policy guarantees to pay the full insured amount, minus a deductible, for a covered total loss.
1Lower premiums
Classic car insurance is up to 43% lower than standard auto insurance.2 So you can protect your investment for less.
Flexible usage
Allows limited pleasure use with no fixed mileage limits.
Access to the experienced claims team at ISG
The in-house claims team at Hagerty is trained in the art of classic vehicle repairs.
Repair shop of choice
When it comes to repairing and maintaining your collector car, it's worth it to be choosy. You decide who should do the work.
Nationwide classic car insurance by ISG covers a wide range of collector vehicles
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Antique and classic cars
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Muscle cars
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Classic trucks and utility vehicles
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1980 or newer collector cars
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Collector motorcycles and scooters
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Modified vehicles – like hot rods, tuners and lowriders
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Antique tractors
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Collector race cars
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Motorsports protection
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Classic military vehicles
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Kits and replicas
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Retired commercial vehicles
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Vehicles under construction
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Collector trailers
Third Party Car Insurance
No more sweating over the injuries or damages you cause to another person or property in an accident by your car. It is a human error, and ISG is here to make it right! We clear all your liabilities in a snap. A third party car insurance policy offers coverage for any bodily injury to third party or any damage to the third party property. In event of an accident claims can be raised by the third party for damages, therefore having a third party car insurance policy protects you from such costs.
Restart Your Car with Jumpstart
We know you are rearing to get back to normalcy! But have you spared a thought about your car which has been languishing in the parking lot while you were holed up at home staying safe? Restarting your car after a hiatus may spell inconvenience and trouble but ISG always has your back in times of difficulty and now is no different. We help you JumpStart your car for free, all you’ve got to do is, give us a call on 022-62346235! The JumpStart service is a limited period offer and can be availed irrespective of whether you have a ISG Car insurance or not. It can’t get better, so rouse your cars from their deep sleep and avail the ISG JumpStart service now!
What’s Included in third party car insurance policy?
Personal Accident Cover
We consider customers as our top priority and hence under this car insurance policy, a compulsory personal accident cover is present for USD $ 1000
Third Party Liability
Did your vehicle cause injuries to another person? Fret not! Your third-party car insurance offers coverage to all liabilities related to medical needs of a third party.
Third Party Property Damage
Did you accidentally collide with another person’s vehicle or property? If yes, do not worry as we cover upto USD $ 500 towards third party property damages.
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