What is car insurance: Car insurance is a vehicle insurance policy that protects the insured car and four wheeler owners from any risk and damage that may lead to financial loss. A car insurance policy is a contract between an insurance company and a car owner that provides protection on the road against any financial loss or damage caused by a car accident, third party liabilities, theft, man-made calamities, fire or natural calamity. provides.
What is Car Insurance?
Car insurance, also known as vehicle or motor insurance, protects you and your four wheeler against any damage caused by accident, theft, or other damage to the insured vehicle or third party person or property. Provides security.
Types of Car Insurance Policy:
Car insurance is a protection cover for your car against any damage caused by natural calamities like flood, earthquake, cyclone, accident and theft. A car insurance policy is a must to protect cars in India. There are three types of car insurance policies in India:
1. Third Party Car Insurance
A third-party liability car insurance policy protects the car insurance owner from any kind of legal liabilities that arise due to the insured car being involved in an accident. Under this policy, the insurer indemnifies any third party for disability, injury, death or loss of property. In this way, a policyholder is protected from financial liability towards third parties.
2. Comprehensive Car Insurance
A comprehensive insurance policy provides coverage for third party liability as well as damages caused to your own car. As compared to third party liability insurance, a comprehensive car insurance policy offers wider coverage, higher benefits and covers damages caused to the insured car in case of accident, collision, theft etc. This can be extended further by opting for add-on accessories cover, engine protector, zero depreciation cover, medical expenses etc. This type of coverage is most popular as it provides end-to-end coverage and thus less stress for the policyholder.
3. Pay as You Drive Insurance
Pay as You Drive Insurance Insurance is also known as use-based vehicle insurance. It allows the policyholder to pay the premium of insurance according to the kilometers driven by the insured car. This will be useful for people who have multiple cars and therefore do not use each of them very often. Currently, there are only a few insurers who are offering this policy. It provides comprehensive coverage for own damages and third-party liability coverage is provided on a pilot basis for a period of one year.
How to buy and renew car insurance?
Compare car insurance online from top four wheeler insurance companies before renewing. It takes a few minutes to buy or renew car insurance online. You have to enter vehicle details, contact information and insured details and choose the cover as per your requirement. Buying a car insurance policy is mandatory for all cars in India as per the Motor Vehicles Act 1988. Car insurance companies indemnify third parties for loss or damage caused to the insured car and the insured four wheeler. Some of the reasons to buy a new car insurance policy in India are as follows:
- It pays for damage to the car as a result of collision, accident, death or natural calamities, which would otherwise have to be paid by the insured.
- It pays for hospitalization expenses in case of an accident
- It minimizes the financial and legal losses that may arise from the liability or damages of a third party
- Expenses are further reduced with rider benefits like roadside assistance, zero depreciation
- Your car insurance premium amount is decided on the basis of the Insured Declared Value or IDV of the vehicle. If you increase the IDV the premium goes up and if you decrease it the premium goes down.
Things to consider while choosing a car insurance policy?
what is covered:
Check the inclusions and exclusions of both third-party insurance and comprehensive auto insurance policies. Buy third party insurance only if you can cover your loss on your own.
Compare Car Insurance Online:
Compare car insurance online and choose the one that meets most of your financial requirements. You can easily get multiple four wheeler insurance quotes online from the best car insurance companies in India.
Claims Expense Ratio:
Higher ICR indicates satisfied customers and your claim is more likely to be settled.
It is always recommended to buy a comprehensive car policy with added benefits like roadside assistance, zero depreciation, flat tire assistance, etc.
What is included in a car insurance policy?
Four wheeler insurance policy covers the following:
- Loss or damage to the insured vehicle.
- Loss or damage to your vehicle due to accident, theft, fire, explosion, self-ignition, lightning, riots, attack or acts of terrorism, natural calamities.
- Financial liability due to injury/death or damage to property of a third party.
- Personal accident insurance cover.
What is not covered in a car insurance policy?
The following features are generally not covered in a 4-wheeler insurance policy:
- Loss or damage if a policy is not in force.
- Gradual breakdown of the car and its parts.
- Damage or damage to the vehicle caused by a person driving a vehicle without a valid driving license.
- Damage or damage to the vehicle as a result of intoxication of drugs, alcohol, etc.
- Damage or damage to the engine as a result of an oil leak.
- Damage or damage to the vehicle as a result of misuse of the car manufacturer’s guidelines.
Add-on cover to car insurance policy:
Add-on covers are additional covers or protections that you include in your car insurance policy to protect your car from any loss or total loss. Need to purchase add-on cover on payment of additional premium amount. Following are some of the add-ons covered –
- No claim bonus protection cover,
- Zero depreciation cover
- public protection cover,
- Key protection cover, etc.
Also read: What is Corporate Health Insurance?
How to file a car insurance claim?
It is important to understand the correct steps for making a car insurance claim as your insurer may reject your claim for a number of reasons. So make sure you understand what is required to be done while making a car insurance claim. Follow the steps given below to get a valid 4 wheeler insurance claim easily:
Step 1: Raise Claim Request –
Share the details of the accident with your insurer immediately after the accident occurs. Make sure you properly document and share photographic evidence to support your case.
Step 2: Inspection –
Once the claim is registered, the insurer will send an inspector to survey the claimed damages.
Step 3: Sending the Car in for Repair –
Once the inspection is complete, you can send the car to the partner garage for repair.
Step 4: Claim Settlement –
If you have a cashless claim policy, the insurer will settle the repair bills directly with the network garage. However, if you have opted for reimbursement claims, you will have to first pay the bills and then claim the reimbursement.