Car insurance is a legal agreement between you, the insured, and the insurance company or the insurer, wherein the insurer is liable to cover any financial losses that occur because of an accident or theft of the car or damages to a third party because of the car. The extent of coverage, however, depends on the terms and conditions of the car insurance policy document.
Now buy your dream car without the financial stress of owning one. Car insurance allows you to safeguard yourself and your dependents from financial losses that could arise out of damages to your car. The damages may occur because of accidents, theft, natural calamities, and much more. Buying car insurance is simple, hassle-free, and convenient..
If you do not already have insurance on your car, you need one immediately because:
1. It is mandatory by Indian law, as per the Indian Motor Vehicles Act.
2. It protects from any third-party liabilities arising because of damages caused by your car.
3. It protects you from the financial losses of car theft.
4. It protects you from losses arising out of accidents and damages from natural calamities.
With car insurance, you can avail a personal accident cover up to a certain amount.
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1. Third-Party Liability Policy
Third-party liability insurance is the most basic and minimum requirement on your car as per Indian law. It covers you against any financial and legal liabilities that arise out of damages to a third party or their property because of your car.
2. Comprehensive Policy
A comprehensive policy is more detailed than the third-party liability policy, with much larger coverage. It not only covers losses from damage caused to a third party but also financial losses to you because of damage to your car or property because of the car.
3. Pay-as-you-drive Policy
Under this policy plan, you need to pay the insurance premium amount based on the number of kilometers covered by the car. The premium amount is usage-based. You are covered as per the inclusions of the comprehensive and the third-party liability policy on a pilot basis for a year.
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Here a list of inclusions in the car insurance policies offered by most insurance companies:
1. Loss because of damages caused by natural calamities like storms, floods, earthquakes, etc.
2. Loss because of damages caused by strikes, riots, theft, terrorism, etc.
3. Personal accident cover
Financial and legal liability arising out of damages to a third party or their property.
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Your car insurance company will not cover the below:
1. General wear and tear of the car.
2. Depreciation in the value of the car.
3. Any electrical or mechanical breakdowns of the car.
4. If the driver was under the influence of intoxicants like drugs or alcohol during the time of the accident.
5. If the driver was violating any traffic rules during the time of the accident.
6. Add-on covers not taken as part of the insurance policy.
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Zero Depreciation Cover :
Taking the zero depreciation cover on your car insurance policy protects you from suffering any further deductions on your claim amount because of the depreciation value of the damaged parts of the car.
No-claim bonus :
The No-claim bonus cover makes you eligible for a bonus from your insurer in case no claims were made on the policy in the past year.
Emergency Assistance Cover :
The Emergency Assistance Cover allows you to drive hassle-free in any part of India. In case of an accident or a breakdown, you get immediate site repair or towing assistance wherever you are.
Key Replacement Cover :
The key replacement cover allows you to claim a free replacement of your car keys in case you misplace or lose the key. The replacement is done free of charge, where the insurance company pays for the replacement charges.
Return To Invoice :
In case there is a difference between your car's insured value and purchase value, the return to invoice cover helps you cover the gap during your claim in case of a loss or theft.
Engine And Gearbox Protection Cover :
The engine and gearbox cover helps cover costs of repairs on any parts of the engine and gearbox, like nuts, bolts, screws, etc., and the corresponding labor charges for repair and replacement as well.
Consumables Cover :
The consumables cover helps cover costs of consumables like engine oil, nuts, bolts, gearbox oil, grease, washers, etc., during repairs or servicing.
Passengers Cover :
The passengers' cover in your car insurance policy helps secure you financially from any damages or injury to other passengers in the car during the accident.
Car Downtime Expenses :
Car downtime expenses cover help you with reimbursement for any travel and other expenses incurred while your car is under repair or service at a network garage. You get a
daily allowance from the insurance company to help cover any such expenses.
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• Based on the IDV of your car. IDV is the insured declared value or the market value of the car. The IDV amount stated by the insurance company directly affects your car premium amount.
• Check the claim application process. Make sure that the insurer you choose has a quick claim application and settlement process with minimal hassle.Look out for the extra service benefits offered by the company. Insurance companies often float
• limited period offers where you can get great discounts on your insurance premiums or win yourself some extra benefits and services at minimal or no cost along with your car insurance policy.
• The claim settlement ratio of the insurance company is significant. A higher claim settlement ratio means that the company has settled a much larger number of claims compared to the total claim requests received.
• Ensure that the insurance company has a qualified customer support team that is accessible and available at all times. Look for an insurer that offers 24/7 customer support in case of emergencies or needs.
• Opting for an insurer with a large network of cashless garages can be advantageous. Whenever you have any repair work to be done on your car, you can go to the nearest associated garage for a cashless repair. The insurance company pays for the repairs.
• Compare the quotes offered by different insurers and check for the inclusions and covers offered by each.
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