Auto insurance can be defined as a smart coverage of financial protection to consumers against bodily damage, stemming from traffic crashes or stealing of vehicles. For instance, IRDAI (Insurance Regulatory and Development Authority of India) has delegated the three-year insurance scheme for four-wheelers and five-year plan for bikes at the time of registry or garage sale. To safeguard both the insured and uninsured customers from unwanted misfortunes, the Motor Vehicle Act enforces people to have essential third-party accountability coverage, which defends the insured party against the fiscal loss in the occasion of physical injury, demise, and impairment of assets such as building, utility pole, or fence to the third party.
This post is now going to reveal quite a few common cases when insurers often tend to offer discounts to the customers-
- When the customer hasn’t faced an accident in the past five years, thereby showcasing a clean driving record. Also, drivers who take defending driving courses are often eligible for auto insurances.
- Students in college are often granted auto insurance.
- There are certain loyalty discounts that help folks save on a strategy with numerous cars.
- Many insurers offer discounts for military associates and other public affiliates.
There are also cases when getting auto and home insurance through the same benefactor can save one around thirty per cent on the cost of premiums.
According to Allied Market Research, the global auto insurance market is anticipated to register a significant CAGR from 2020 to 2027. In the past few years, there has been a considerable rise in the number of accidents across the world. At the same time, government bodies in different countries have also come up with strict rules and dictums for the mandatory adoption of auto insurance, which in turn has driven the market growth in more than one way. Furthermore, surge in automobile sales owing to increase in per capita income among individuals has proved to be highly beneficial for the growth of the market. Simultaneously, smart enactment of technologies in the remaining service lines and products and increase in demand for third party accountability analysis in developing economies are anticipated to pave the way for numerous opportunities for the key players in the sector.
Here, it’s worth mentioning that the outbreak of the pandemic gave way to an abrupt economic downfall in 2020. Imposition of strict lockdown measures by the governments in most countries and ban on travel across the globe impacted the auto insurance market badly, especially during the initial period. Nevertheless, to bring these defies under control, insurers have started improvising new amendments in the existing policies and adopting advanced technologies to perk up the claim processes so as to dole out greater experience for the users even amidst the global health crisis. Furthermore, as the global situation is being ameliorated slowly and mass inoculation drives have also been initiated in the majority of countries, the market for auto insurance is projected to get back on track, in terms of revenue, very soon.
Author’s Bio- Koyel Ghosh is a blogger with a strong passion and enjoys writing on miscellaneous domains, as she believes it lets her explore a wide variety of niches. She has an innate interest in creativity and enjoys experimenting with different writing styles. A writer who never stops imagining, she has been serving the corporate industry for the last four years.