Car Insurance is an effective policy that covers all the financial needs to the respective vehicle against different kinds of damages, theft, accidents and many more. It comes with a proper insurance plan which safeguards your car during emergencies such as body injury, traffic sliding, any third-party intrusion, etc.
Thus using a car insurance policy will give policyholders the required coverage against such damage. The policies are included even during any mischievous act of terrorism, explosion, strikes, riots, lightning, natural calamities, etc.
With such insurance policies, you will get the option to convert the premium amount to EMI.
The premium is payable on a monthly or quarterly rate. So, choose your preferred quote and seamlessly purchase several discounts from your comfort zone.
Benefits of Car Insurance
Besides serving as a compulsory feature, car insurance policy comes with an array of benefits. This makes the product much better for car owners residing in India. Car insurance policy holds tremendous importance for the car owners since it not only serves the best during emergencies but also provides surplus benefits.
Loss or Damage Done to the Car
The insured gets coverage for certain losses caused by accidents, fire breakout, theft, ignition and many more.
Personal Coverage for Accident
It covers all sorts of expenses that take place if the insured is affected due to an accident. The agency will provide the car insurance service which will include the expense of the insured.
Alongside the basic coverage you get, some surplus covers cover a wider area. However, this will depend solely on the insurer.
Zero Coverage of Depreciation
In the Zero Depreciation coverage, the insured person will receive the original cost car’s spare parts in place of the reduced value.coming from the insurer.
No Amount of Bonus Claimed
When you don’t file any claim during this tenure, then you are bound to get a discount of at least 5% to a maximum of 50% at the time of renewal.
Roadside assistance comes with a plethora of benefits that cover emergency transport, regular allowance, benefits of taxi and many more.
It is extra coverage that helps the policyholder if there is any major loss of the car owing to any sort of damage due to the accident.
Coverage for Replacement
If the key is lost, this replacement feature will encompass the expenses of the replacement process of the new locks.
Types of Car Insurance Policy
In India, car insurance is divided into two major categories. Both of them are quite helpful in assuring the insured person to tackle those expenses which might arise from because of sudden emergencies.
Third-Party Liability Coverage
Third-Party Liability comes into existence because of the increase in road accidents. It will cover all the claims owing to the damage caused by you to a third party. Third-Party liability will not cover any sort of destruction or losses done to the policyholder.
This is formulated to provide the minimum risks involved which come under the realm of Auto Vehicles Act 1938. The third-party insurance quote is a blend of some components which covers the following:
- Third-party premium.
- Coverage is given to the driver of the owner in case of any loss after the accident.
- Goods, as well as service tax, included.
Comprehensive coverage is the most used form of car insurance and it is built in such a manner that it will give a wide range of coverage to the insured person as well as the third-party vendors. Under this scheme, you will get the third party coverage along with the entire coverage of the vehicle.
This will provide the majority of the expenses to the insured car along with the third-party liability. The quote is the summation of components which comprises of
- Third-Party as well as Own Damage Premium
- Premium covering personal Accident owner-driver cover.
- It will provide surplus coverage alongside Goods and Services Tax.
Inclusions of Best Car Insurance Policy
Damage of Your Vehicle
Alongside third party considerations, the owner can claim the damage that takes place in the car at the time of the accident.
Personal Accident Cover
In case of any certain demise or the owner is physically challenged, due to the accident then the insurer is liable to give the compensatory amount thereby decreasing the financial pressure.
Nature can behave in an unusual way leading to floods, drought, earthquakes, landslides and many more. Thus if the owner opts for comprehensive car insurance, the insurance will surely protect the car at the hour of need,
If the car is stolen, the owner can go ahead and file an FIR. The insurer will come and pay an amount equivalent to the declared value as prescribed in the car policy.
Keeping aside theft and robbery, the car insurance agency will protect the insured from the hands of several man-made disasters. This will cover riots, terrorism, Fire break, strikes, and many more. This is one of the best benefits of car insurance.
If the car is accidentally run over someone and if this leads to some serious accident, then the insurer can easily pay the required compensatory amount to the person.
Liability in Case of Property Damage
If the car runs into the property of someone, then the insurance agency is bound to pay the compensation amount for the loss or damage. This will cover up to 7.5 lakhs.
Exclusions of Car Insurance Policy
While claiming, one is not subjected to pay the entire amount. There happen to be various limitations as well as certain exclusions when the car insurance policy is taken into account. It is a long list and it includes the following circumstances when the damage of the car is not considered.
- The motor policy should be renewed yearly and if this is not the case o if there is any damage that takes place after the expiry, the loss won’t be covered by the agency.
- If the person who is driving has consumed alcohol or drugs with the consent of the insured person, then it won’t be considered.
- The driver will be penalized if the car is driven without any valid driving license.
- Loss of the engine owing to certain oil leakage.
- Violation of the guidelines as prescribed by the manufacturer for the appropriate car usage or another car-related breakage.
- Serious damage to the car that takes place owing to continued terror threats, attacks, foreign attack, mutiny, hostilities, etc is not under the car insurance policy.
- The action or event which is deliberate doesn’t come under the insurance norms.
- Consequential debacles like the damages which might take place due to the action arising from the policyholder and not a direct result of an uncertain event are not included. The case can be the damage of an engine owing to hydrostatic loss at the rainy season is common consequential damage. It is because the loss doesn’t take place owing to floods or rain. Someone might crank the vehicle in a region which is entirely waterlogged. But it might be a hasty event or an intentional cause or a sheer mistake, whatever is the case, it is not included under the insurance policy.
- Any contractual liability is not considered under the policy. It signifies those claims that might take place owing to the entry of the policyholder to that particular contract. The policyholder could want to give the car to someone for a certain period and during that tenure, the car suffers a loss. The loss that takes place won’t be covered by the car insurance agency. But if the original owner is driving even if it is pledged to someone, then the compensatory amount will be paid by the agency subjected to certain conditions of the policy.
Add On Features of Car Insurance Policy
Zero Depreciation Cover
The loss which might arise due to normal wear and tear is not included under the standard plan. This is the sole reason why during the time of the policy renewal, the insured value known as the Insured Declared Value is thoroughly checked to make up the depreciation.
Through this, the insurance agency is avoiding the loss which the car normally encounters due to wear and tear.
Any sort of damage, big or small, the maximum amount payable is the IDV of the car as mentioned in the policy paper. IDV signifies the present market value of the vehicle based on the selling price as enlisted by the manufacturer. The car insurance agency provides this to the owner in case of theft or damage to the car.
A vehicle is under total loss when the cost of the retrieval and the repair is more than 75% of the IDV as per the norms. But in the case of the entire loss, where you are liable to get the full IDV the settlement amount is very much less than the actual payment. Therefore, the addition of insurance to the standard policy will make the concerned person eligible for the total amount.
However, this cover lasts for only two years from the date of registration. Therefore, it is only applicable when the car is fresh and brand new.
Engine Protector Cover
Engine is the most valuable part of the vehicle. But it is not covered under insurance in case if it is malfunctioned. If the car is submerged in a waterlogged zone, and the owner tries to start the car, then it might lead to engine seizing.
So, it is not included under car insurance. At this juncture, it is essential to incorporate an engine protector that will protect the car from all kinds of non-accidental exclusions related to the car engine.
Extended Accident Cover
Basic insurance is mandatory for the car owner while purchasing a car. But the passengers or the hired driver won’ t enjoy such a facility that means the accident insurance.
Car Insurance Plans
While choosing the top quality plan certain factors should be taken into consideration. Owners should know about the basic coverage of the plan.
Bajaj Car Insurance
|Cashless Network Garage
|Up to 7.5 lacs
|No Claim Bonus
|Up to 50%
Bharti AXA Car Insurance
|Up to 7.5 lacs
|Cashless Network Charges
|Incurred Claim Ratio
|Total Premium Earned
|Basic Cover, Roadside help
Cholamandalam Car Insurance Plans
|Cashless Network Garages
|No Claim Bonus
|Up to 50%
|Up to 7.5 lacs
|Round the clock support
Future General Car Insurance
|No Claim Bonus
|Up to 50%
|Future Express & Express
|Round the Clock Facility
|Within the boundaries of the city
How To Get Car Insurance?
Car insurance comes with an agreement that tells the insurer to pay against the losses incurred due to the damage of the car. It will cover all the losses which might arise due to the damaged cars or vehicle.
It is a major compare feature or plan that you have to purchase before you buy or renew the existing policy. When it deals with a premium then the same will depend on the Insured Declared Value (IDV) of the car.
With the increase in IDV, there will be an increase in the premium amount paid. With the reduction in IDV, there is a reduction in the premium amount as well. Apart from the compulsory features, car insurance has bought an array of benefits which will make the product better for most of the car owners residing in India.
Car Insurance: FAQs
Q.1 What is the ultimate way to reduce the premium for car insurance plans?
The best way is to go for an online web aggregator during the buying or at the time of renewal. Online web aggregators will come up with free quotes along with the comparison services so that you can avail of the advantages and select the best policy as per your need. In this way, it will help you to purchase the cheapest policy.
Q.2 What are the most customer-centric car insurance agencies in India?
There are various car insurance agencies such as Tokio car insurance, HDFC Ergo, Bajaj Allianz, etc. Go through the best one available on the internet and choose it as per your budget to insure your vehicle.
Q.3 What are the major setbacks of not paying car insurance?
If you are a car owner residing in India, then it is compulsory to have car insurance. But if you don’t have the car insurance then there are some setbacks. It is not authorized in India to run a vehicle without valid car insurance. If car insurance is not paid, it won’t save the owner from certain accidents. This is what keeps your car secure even in the busy streets of India. So, it is imperative to ensure your vehicle from the major insurers such as Bajaj Allianz, SBI Car insurance, IFFCO Tokio car insurance and many more.
Q.4 What is the best car insurance service website?
There are various websites of top-notch insurance agencies like Oriental Insurance Company, New India Insurance, Bajaj Allianz, etc. Therefore, there is a chance of getting perplexed while choosing the service. In this situation, go for the online insurance web aggregator to compare quotes and get the plan beforehand from the reputed insurance agency in a jiffy.
Q.5 Is there any document that should be inside the vehicle while running the car in public places?
Certain documents should be kept inside the car while moving in public places.
- Insurance certificate
- A photocopy of the registration certificate.
- Pollution under Control Certificate.
- Xerox copy of the driving license of the car owner who is driving the car.
Q.6 What is meant by Constructive Total Loss in car insurance plans?
Constructive Total Loss is the accidental loss or any destruction done to the car where the cost of repairing exceeds the Insured Declared Value (IDV) by 75 percent.
Q.7 Which documents are needed to cancel the car insurance policy?
There are three documents required to cancel the car insurance policy.
- Customer Request Letter.
- Alternate proof for car insurance.
- Original proof of the car insurance policy.