Auto insurance helps you to protect you and your family against financial loss in the event of an accident or other cause of loss. It covers the injuries and damages caused by an accident and for which you are legally responsible. It may also cover the costs of repairing or replacing your vehicle if it is damaged or stolen.
In India, under the provisions of the Motor Vehicles Act, it is mandatory that every vehicle should have a valid Insurance to drive on the road. Any vehicle used for social, domestic and pleasure purpose and for the insurer's business motor purpose should be insured. The violation of this act is punishable with fine.

Generally, the longer you drive without major citations or accidents, the lower your premium will be. You may also qualify for discounts based on safety features on your vehicle. Farmers also offers an Annual Policy which keeps your rates stable for the entire year. We calculate your insurance costs for the year, and you don't have to worry about changes for a whole 12 months. Furthermore, with the FarmersFlex Program you can lock in your base rates, and qualify for accident forgiveness for up to 3 years. Also, if you insure additional cars or your home with Farmers you can save on all your premiums. For further information, contact your Farmers agent.

As per the Indian Motor Tariff, published by IRDA, all the vehicles are insured at a fixed value called the Insured's Declared Value . IDV is based on the ex-showroom cost of the vehicle. On every renewal of policy the IDV is calculated after deducting the prescribed depreciation. One can extend the coverage for Personal Accident, accessories etc by paying an additional premium. Presently there is a provision for the Insuring company to give some discounts of their own. But by the end of September 2007, according to a new resolution passed by the IRDA, the calculation of IDV will take into account the gender of the owner and their age also, along with the usual norms of calculation. From April 2007 onwards the Insurance Industry in India is also under de tariff scenario.