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?

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.

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