Car Insurance
Safeguard your car from accidents, thefts, housebreakings and other risks.
The decision of buying a four-wheeler might be a dream, a need or the fundamentals according to your lifestyle, but to pursue this desire, it needs a lot of research to choose among various brands, colors and other factors.
Buying a car is a dream for many and when it comes true as the evidence of your hard work, the most awaited moment, giving it your loved ones or for the sake of self-love, safe-guard your vehicle through car insurance.
Here’s what you need to know about car insurance, the right way to protect your car in India according to the Motor Vehicle Act 1988.
Car Insurance
Car insurance is the agreement between the car owner and the insurance company upon agreeing to pay the monetary expenses in case of road accidents, natural disasters, theft and other liabilities.
Types of Car Insurance
Comprehensive Car Insurance
It covers the damage expenses of the car and also the third-party liabilities. This type of car insurance is suitable for luxury cars as it gets a burden to bear the expenses alone by the owner in case of accidents.
Comprehensive Car Insurance also pays the hospitalization expenses of the car owner as well as the third-party liability.
Third-Party Liability
This is the essential and mandatory insurance any vehicle must have. It covers the expenses and damage occurred to the third-party liability in case of damage, injuries etc.
In case of you the accident caused by you, it covers the damage expenses for the one you caused damage but the damage of your car will not be considered under this insurance.
Pay as you Drive Insurance
According to IRDAI (Insurance Regulatory and Development Authority of India), Pay as you Drive Insurance is usage-oriented insurance which pays for your kilometers driven. There are other coverages which the insurance includes by considering the distance travel
The premiums will be based on your travel coverage. If you are the person who uses the car occasionally during long trips or family outings, this type of car insurance pays premiums only for the distance you think you can travel.
How to select a car insurance policy
Buying the right insurance policy is a tactical one. Here are some factors to be taken care of while buying the car insurance
Check the Add-on covers: Add-ons like Zero Depreciation Cover, Roadside Assistance, Consumable Cover, Engine Protection, Tyre Protection, Passenger Cover, Return to Invoice, No Claim Bonus are the supplementary deals which can be purchased by the extra payment or premium and can be added to your purchased insurance policy.
Check the claimed policy ratio I.e., incurred claim ratio. Incurred Claim Ratio = Net claims incurred/ Net claims collected during that financial year. Moderate to High ICR serves the purpose and are reliable.
Choose the right online place: Do thorough research on the insurance provider and their offers. Ask them an inquiry quote and check their online authentication as many of the unprofessional websites may mislead you.
Online Comparison: Compare the shortlisted policies online to make it compatible for your budget and to get more clarity on includes and excludes of the policy.
Insured Declared Value: The Insured Declared Value or the IDV signifies the maximum amount given by the insurance company in case of the misfortunes.
Check the network of cashless garages: Cashless garages puts your life at ease when a mishap happens you can easily access through the cashless garages and get timely fixation of your vehicle.
What does a Car Insurance include?
- Car insurance pays for the damages caused to your vehicle by the accident.
- Insurance pays for the third-party liability
- Insurance pays for the damage of vehicles due to natural calamities and Man-made calamities.
- Insurance pays the bills of owner’s physiological damage
What does a Car Insurance do not include?
- Wear and Tear factors
- Intentional depreciation
- Act of Negligence
- If the damage is caused by the person with valid license
- Drunk and Drive
- Due to Nuclear wars
- Electrical and Mechanical halts due to excess usage
