Car Insurance
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.
What is car Insurance?
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.
Why do you need Comprehensive Car Insurance?
there are 4 benefits for comprehensive car insurance
- To Abide by Law- Car Insurance help you to abide by mandatory law of motor vehicles act 1988. this law require all four wheeler in India to have at least third part insurance to legally drives on roads and avoid paying a hefty fine.
- Safeguard against third party Liability- Four wheeler insurance protect you against financial losses that could occur due to damage to third party property and offer unlimited coverage for third party death. the compensation for third party death. the compensation for third party death/disability is decided by motor accident claim tribunal.
- Protection against Own Damage- It cover damage sustained by car due to an accident, fire, natural or man made calamity. it also pay monetory compensation up to the IDV in case your car get stolen.
- Have Personal Accidental Cover- It is a mandatory to cover in addition to your car insurance policy. it reimburse your medical cost or offer compensation in case of death or disability caused by accident. Get a affordable personal accident cover for the owner driver of the car.
Type of Car Insurance Policies in India
How to choose Car Insurance Policy
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.
Covered under Car Insurance Policy
- Third Part liability- Damages caused by insured car to the third party are covered under the comprehensive car insurance policy. these liabilities include third party death, disability and property damage.
- Accident- Damages sustained by insured vehicles due to road accident or collision are covered in comprehensive insurance policy.
- Theft- any partial or total loss sustained by insured car due to theft or burglary is covered under the car insurance policy. an amount equal to the car IDV is compensated in theft cases.
- Natural Calamities- damage caused to the insured car due to earthquake, cyclone, typhons, hurricane and other natural disaster are covered.
- Man made act-damage sustained by insured car due to to manmade act like strikes, riots, terrorist’s activist etc. are included in insurance policy.
- Fire- losses to the insured car due to fire, self ignition or explosion are covered under the comprehensive insurance plan.
- Animal attack- Accidental damage sustained by the insured car due to animal attack or rat bites are also covered under car policy.
Add on Cover Car Insurance Policy
- Zero depreciation cover- A zero depreciation cover or bumper to bumper cover offer compensation even for the depreciating value of your car. a standard car insurance policy does not cover the depreciation susutained by the car and its parts. however this addition offer this coverage and the policyholder will not have to pay for the depreciation value for vechile parts. this cover is subject to specific claim during the policy period. compulsary and voluntary deductible will be applicable despite zero depreciation cover.
- No claim bonus protection cover- an NCB protect cover is a very useful add on that help a policyholder can make a car insurance claim.
- Engine protection cover- an ingine is the most important part of a car but it is not covered under a comprehensive plan. with engine protection cover you can get compensated for the cost of fixing the indirect damage that are caused to the engine due to lubricating oil leakage and water ingression. it cover the gearbox parts , engine pats and differential parts.
- Pay as your driver car- a pay as your driver car insurance policy additional cover available with comprehensive car policy. this addon allow policyholder to save up own danage premium based on the number of kilometer driven in a policy year. currently few insurer are offering this addon with a comprehensive policy. this addon is a very useful for car owners who do not drive their cars regularly or own more than one car.
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.
Document Require Car Insurance Policy
- RC- owner name, make model variant , engine no, car, cc , fuel type, vehicles class, during inspection.
- Previous year policy- NCB, insurer name, policy no, policy period, Add on info, during inspection
- KYC- Pan Card/Aadhar card/DL/voter id/Form 16/Passport
Why should you Renew Car Insurance Policy
There are 4 reasons-
- Legal Consequencies- Driving an uninsured car is a punishable offence in india. if caught you will have to pay a fine of 2000 to 3000 rupess.
- No available coverage- if your car policy is expired then you do not get enough coverage from insurer and do not claim. if your car get damage during a policy period you will have to bear the repair cost.
- Loss of NCB- if you do not renew your expired car policy within 90 days then you will be lose you NCB benefit.
- Car inspection- a car with an expired policy may have to undergo a mandatory inspection before its renewal. this may lead to higher premium if the insurer find the vechile ill maintained and in based shape.
How to File Car Insurance Claim
Step1: Raise a claim request- Immediately share details of the accident with your insurer after the accident occur. make sure that you properly document and share photographic evidence to support your case.
Step2: Car Inspection- After the claim is registered the insurer will send a surveyor for surveying claimed damage. you will be required to submit some document to the surveyor for claim verification process. make sure to keep them handy.
Step3: sending the car for repair- Once the inspection is complete you can send the car to network garage for repairs.
Step4: Claim settlement- if you have a cashless claim settlement the insurer will directly settle the repair bills with the network garage. however if you have opted for reimbursement claim you will be first required to pay the bill and then raise a reimbursement claim.
Document require Car Insurance Claim
- Duly filled and signed claim form
- KYC
- Copy of car insurance Policy
- Copy of vehicles RC
- License copy of the driver driving the vehicles at the time of accident
- Copy of Police FIR in case of theft claim
- original repair bill and payment receipts
- estimated repair bill
Tips to avoid Car Insurance Claim
- Declare car modification- inform your insurer about any modification to your four wheeler as soon as you get it done. in case you fail to do so and the insurer come to know about it at the time of claim, they may reject the claim.
- Renew Policy at time- In case you forget to renew your policy before the expiry date and raise a claim post that your insurer will reject that particular claim. therefore make sure to renew your car insurance policy before expiry date.
- Keep document ready- if you want a hassle free claim settlement and avoid any claim rejection make sure to read your policy terms and condition throughly at the time of policy purchase.
- Carry a Varied Driving License- a car insurance claim can also get rejected if the driver was not carrying a driving license with you while driving a car.
- Declare the right NCB- if by mistake you declare an incorrect NCB at the time of buying/renewing your motor insurance policy, then any claim made under the new car policy may get rejected. therefore you must declare the right NCB while purchasing a policy.
Car Insurance Terminology
- IDV – IDV or insured declared value is the current market value of the car. if the car suffer total loss, IDV is the compensation that the insurer will provide to the car owner.
- Premium- premium is the amount paid by the car owner to the insurance company in exchange for providing financial coverage of insured car.
- No claim bonus- No claim bonus or NCB is a renewal discount that the insurance company grant to the car owner for driving safely and not raising a claim in the previous policy year.
- Zero Depreciation cover- zero depreciation cover is a car insurance add on cover that prevent the depreciation value of the car and its parts from getting deducted from your claim amount during the claim settlement.
- Own damage- damage sustained by the insured car due to an accident, natural calamity , fire, manmade disaster or burglary.
- Personal Accident cover– personal accident cover provides compensation to the owner driver of the insured car in case he/she get disabled and died in an accident of the vechile.
- Cashless Claims- claim that are filled when the insured car goes for repair at a network garage of the insurance company.
- Voluntary deductible- voluntary deductible is a part of claim amount that a policyholder willingly agree to pay at the time of claim settlement.
Talk to an Advisor Right away!
Not Sure Which Insurance To Buy?
we help to choose best insurance based on your need.
Comprehensive insurance is considered the best as it provide complete protection for your car. in case you want insurance for an old car , buying a third party policy is best as it provide mandatory coverage and is pocket friendly.
New car insurance is always expensive because the IDV of the car is maximum at this point. the value of the car depreciate with age, which bring down its IDV. most people buy multiple add on which also hike their premium amount.
you can reduce the premium of your 4 wheeler insurance by-
opting for a higher deductible
installing higher theft devices
Building your no claim bonus percentage
avoid buying your uncessary add-on
compare vechile insurance policy
endorsement is a document that incorporate any agreed change made to exisiting car insurance policy terms or personal details of the policyholder.
yes damage due to rat bites are covered under a 4 wheeler insurance policy.
Client's Review
I loved how simple it was to get an online quote for my travel insurance. The entire process was user-friendly, and the pricing was transparent. Paying and buying the insurance online was seamless. Fantastic service!
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