Car insurance important in India if you own a car vehicle. Motor insurance helps against any unexpected expenses due to an accident with your vehicle. It can also help you in case of car theft. Like other insurance policies, a motor insurance policy acts as a risk mitigation tool. Do you really need it?
Types of Car Insurance plans available through different insurance companies
Based on the car insurance coverage, there are three types of car insurance plans:
Third Party Car Insurance
As per Indian law, it is mandatory for every car owner to have at least one third party car insurance policy. This insurance provides you coverage for all third party liabilities such as third party bodily injury, disability, death as well as accidental damage.
Standalone on-damage car insurance
This insurance plan provides coverage only for damage to your car in any road accident, natural calamity, fire, explosion, theft, riot etc. To comply with the legal requirements, you must purchase a third party car insurance plan. An independent own damage car insurance plan gives you the flexibility to choose your own damage cover and third party cover from different insurance companies.
Comprehensive car insurance
It is a bundled cover that provides you with coverage for both third party liabilities as well as your own damages caused to your car in an unfortunate event. Among all the three types of car assurance plans, a comprehensive cover gives you maximum coverage. You can further enhance the coverage of this plan by opting for add-ons like zero depreciation cover, engine cover etc.
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What Does Your Car Insurance Cover?
The coverages offered in different car assurance plans are as follows:
| Car Insurance Coverage | Third Party | Comprehensive | Standalone |
| Damage/losses caused to your car due to accident | X | ✔ | ✔ |
| Theft of two-wheeler | X | ✔ | ✔ |
| Damage incurred due to fire | X | ✔ | ✔ |
| Damage/losses due to natural calamity | X | ✔ | ✔ |
| Damage to property and third party vehicle | ✔ | ✔ | X |
| Personal Accident Cover (if opted) | ✔ | ✔ | ✔ |
| Injury/ Death of Third Party due to an accident | ✔ | ✔ | X |
Benefits of Car Insurance
As per the Motor Vehicles Act, third party insurance is mandatory and you must buy a new or used vehicle. You can also buy extended covers.
Loss or damage to the insured vehicle
If your vehicle gets damaged due to an accident, fire or self-ignition, you are protected. Additionally, if the car is stolen or gets damaged due to theft, strikes, riots or terrorism, your assurance policy covers it. Another advantage of car assurance is that it covers loss or damage caused during transit by rail, inland waterways, air, road or lift.
Personal Accident Cover
Another advantage of car assurance is that it provides personal accident cover for a predetermined amount. Personal accident cover provides protection against permanent total disability, death due to accident. Additionally, this cover can be availed for other passengers under the car assurance policy for a predetermined amount on an undisclosed basis (subject to the maximum seating capacity of the vehicle).
Large network of garages
This ensures that you will get cashless services at all these places as and when required. This feature makes it convenient to avail repair services in case of any damage to your vehicle.
Liability of third parties
If your car is involved in an accident that results in loss or damage to a third party property, it is covered under car insure. Additionally, your car insurance protects you in case you face any legal liability in case of bodily injury or death of a third party.
No Claim Bonus
One of the major benefits of having car insure is the No Claim Bonus (NCB). The subscriber is eligible for this benefit for every claim-free year. This may be available in the form of a discount on the premium, making car insurance more affordable.
Legal Necessity
A car owner needs liability assurance for his newly owned car, the right assurance policy protects you from legal provisions.
Insured for Medical Claims
In case of serious injury to the driver or passenger, a person may not be able to bear the heavy medical expenses. Having an insurance policy assures that medical expenses are covered to support the financial burden.
Protects driver and passenger liability: If any damages happen to the drivers and passengers in case of accidents, your insurance policy covers the damage expenses. Now you can drive on the roads without any tension due to the perks included in the car insurance policy. Never be careless about driving with an insurance policy to back-up, there are many benefits of car insure premium. Know how insurance helps protect you from unexpected losses.
Factors consider while choosing Car Insurance
1. Quick and hassle free process
When you choose to buy a car insure policy, it is important that you do not have to go through a long and cumbersome process. The whole process should be simple, quick and convenient. Also, it is recommended to choose an insurer that offers the added convenience of buying a policy online.
2. Customer Support
A reliable and reputed insure company employs trained and experienced personnel to help you resolve all your queries. Insurance companies also offer live chat to ensure that your problems are resolved without any delay.
Taking a car insure policy gives you peace of mind. You are assured that you will not face any financial hardship in case of any loss or damage to your vehicle or the third party.