Car Insurance is also known as Vehicle Insurance provide financial coverage to the insured car against road accident, theft, fire.
It also cover damage due to natural calamities , animal attacks and manmade acts, along with third party death or property damage. Having a valid third party insurance policy insure that you comply with the laws of motor vechile act 1988.
A car insurance is a contract between a car owner and a insurance provider. in exchange for a nominal premium, insurance companies offer financial protection to four wheeler from unforeseen events like accident, theft, fire and calamities and third part liability. with a valid insurance policy you can also save yourself from heavy traffic fines.
Three type of motor insurance policies are third part, own damage and comprehensive car insurance. Moreover a car owner can buy a personal accident cover of up to INR 15 lakh to cover the death injuries and disability of the owner and driver of the insured car.
While selecting a car insurance policy there are multiple factor like scope of coverage, claim settlement ratio, cashless repairs etc. that can help you choose the right car policy. some of the list are-
- Pick a appropriate insurance Policy- Third Party insurance will be sufficient to save you from paying traffic challan. but if you want to complete protection to your vechile then a comprehensive policy be bought.
- Choose a Suitable IDV- Go for an IDV that is closer to the market value of your car. a lower IDV can reduce your premium but can increase you out of pocket expense during claim settlement. to get the right IDV to choose a policyholder can also make use of an IDV calculator.
- Check the insurer Claim Settlement Ratio- Make sure to check the claim settlement ratio of the insurance company before buying the car policy. a lower CSR indicate a lower chance of your claim getting settled and thus an insurer with a higher CSR is recommended.
- Check for Cashless Garages in your city- Check the number of cashless network garages registered in the area where you reside. it will broaden the scope of availing the cashless facility without paying the cash from you own pocket.
Factor Affection Car Insurance Policy
- Types of Cover- the standard premium of your car policy is decided based on the type of coverage you opt for your four wheeler. basically third party insurance carries the lowest premium as it cover the third part damage. the premium become higher if you add own damage cover to it or purchase comprehensive four wheeler insurance.
- Personal accident cover- Personal accident cover is provided in both third part and comprehensive policy.
- Insured declared value- IDV which is the current market value of the car. it is the maximum amount for which the policyholder can raise the claim during the policy term. the higher the car value means higher IDV and vice versa.
