Car insurance is a legal agreement between you, the insured, and the insurance company or the insurer, wherein the insurer is liable to cover any financial losses that occur because of an accident or theft of the car or damages to a third party because of the car. The extent of coverage, however, depends on the terms and conditions of the car insurance policy document.
Now buy your dream car without the financial stress of owning one. Car insurance allows you to safeguard yourself and your dependents from financial losses that could arise out of damages to your car. The damages may occur because of accidents, theft, natural calamities, and much more. Buying car insurance is simple, hassle-free, and convenient.
Why Do You Need Car Insurance?
If you do not already have insurance on your car, you need one immediately because:
1. It is mandatory by Indian law, as per the Indian Motor Vehicles Act.
2. It protects from any third-party liabilities arising because of damages caused by your car.
3. It protects you from the financial losses of car theft.
4. It protects you from losses arising out of accidents and damages from natural calamities.
5. With car insurance, you can avail a personal accident cover up to a certain amount.
Key Features And Benefits Of A Car Insurance Policy
Car insurance policies offer a wide variety of benefits to individuals these days, making your dream car more accessible and affordable. The key features and benefits of having a car insurance policy include:
Affordable Premiums
By buying your car insurance policy online, you can save a lot on your premium. Easy claim application process – Most insurance companies have a dedicated and highly experienced team of claim experts who help apply and speed up the claim settlement process.
No Claim Bonus
You can opt for a no-claim bonus cover on your car insurance. With a no-claim bonus cover, you are eligible to get a bonus amount if you don’t make any claims on your car insurance for the entire year.
Cashless garage network
Getting your car insurance from a reputed insurance company often opens up the opportunity of cashless garages, where you can get cashless repairs for your vehicle in any of their associated garages. The insurance company covers the cost of repairs.
Flexible add-on cover options
With your car insurance policy, you can opt for several add-on covers to offer greater protection from damages. These include key replacement cover, zero depreciation cover, emergency assistance cover, etc.
Third-Party liabilities
In case any liabilities arising out of damages to a third party or their property because of your car, your car insurance will protect you.
Easy application and renewal online
You can apply for a new car insurance policy or simply renew your old one quite easily online. You need to enter the necessary details about your vehicle and old insurance policy (if applicable), pay the insurance premium online, and the new/ renewed policy document will be with you in minutes.
Types Of Car Insurance Policies In India
Depending on the extent of financial coverage and risks you want to cover against, car insurance policies in India are essentially of two types:
1. Third-Party Liability Policy
Third-party liability insurance is the most basic and minimum requirement on your car as per Indian law. It covers you against any financial and legal liabilities that arise out of damages to a third party or their property because of your car.
2. Comprehensive Policy
A comprehensive policy is more detailed than the third-party liability policy, with much larger coverage. It not only covers losses from damage caused to a third party but also financial losses to you because of damage to your car or property because of the car.
3. Pay-as-you-drive Policy
Under this policy plan, you need to pay the insurance premium amount based on the number of kilometers covered by the car. The premium amount is usage-based. You are covered as per the inclusions of the comprehensive and the third-party liability policy on a pilot basis for a year.
Difference Between Third-Party And Comprehensive Car Insurance
| What Are The Inclusions Of A Car Insurance Policy? | Basic Exclusions Of A Car Insurance Policy |
|---|---|
|
Here’s a list of inclusions in the car insurance policies offered by most insurance companies:
1. Loss because of damages caused by natural calamities like storms, floods, earthquakes, etc. |
Your car insurance company will not cover the below:
1. General wear and tear of the car. |
Add-Ons Covers In A Car Insurance Policy
Along with your comprehensive car insurance policy, you can opt for any or all of the following covers:
Zero Depreciation Cover :
Taking the zero depreciation cover on your car insurance policy protects you from suffering any further deductions on your claim amount because of the depreciation value of the damaged parts of the car.
No Claim Bonus Cover :
The No-claim bonus cover makes you eligible for a bonus from your insurer in case no claims were made on the policy in the past year.
Emergency Assistance Cover :
The Emergency Assistance Cover allows you to drive hassle-free in any part of India. In case of an accident or a breakdown, you get immediate site repair or towing assistance wherever you are.
Key Replacement Cover :
The key replacement cover allows you to claim a free replacement of your car keys in case you misplace or lose the key. The replacement is done free of charge, where the insurance company pays for the replacement charges.
Return To Invoice :
In case there is a difference between your car’s insured value and purchase value, the return to invoice cover helps you cover the gap during your claim in case of a loss or theft.
Engine And Gearbox Protection Cover :
The engine and gearbox cover helps cover costs of repairs on any parts of the engine and gearbox, like nuts, bolts, screws, etc., and the corresponding labor charges for repair and replacement as well.
Consumables Cover :
The consumables cover helps cover costs of consumables like engine oil, nuts, bolts, gearbox oil, grease, washers, etc., during repairs or servicing.
Passengers Cover :
The passengers’ cover in your car insurance policy helps secure you financially from any damages or injury to other passengers in the car during the accident.
Car Downtime Expenses :
Car downtime expenses cover help you with reimbursement for any travel and other expenses incurred while your car is under repair or service at a network garage. You get a daily allowance from the insurance company to help cover any such expenses.