Auto insurance or car insurance is a type of insurance policy that protects your vehicle and the car owner from any risks and damage that could lead to financial loss. Car insurance policy is a contract between a car insurance company and a car owner that protects the road from any loss or damage caused by accident. A car insurance policy provides the car insurance beneficiary with financial protection against any loss or damage resulting from road accidents, liabilities to third parties, theft caused by human disasters, fires or natural disasters.
Types of Car Insurance Policy in India
Comprehensive Car Insurance
The comprehensive insurance policy provides coverage for third-party liability, as well as damage to your car. Compared to third-party liability insurance, comprehensive four-wheeled vehicle insurance offers broader coverage, more benefits and covers damage caused to the insured vehicle in the event of an accident, collision, theft, etc.
The general policy can be further expanded with a selection of accessories such as an accessory cover, engine protection, zero depreciation, medical expenses, etc. This type of coverage is the most popular because it provides continuous coverage and reduces the burden on the policyholder.
Third Party Car Insurance
Third-party insurance protects you from any legal liability due to your vehicle being involved in an accident. Your insurance company will indemnify third parties for death, injury, personal injury or property damage. This way, you are protected from financial liability to third parties.
Third-party liability insurance rates are set in India under the Motor Vehicles Act, 1988.
Points to Consider When Choosing a Car Insurance Policy
Checkout for inclusions and exclusions of both third party insurance and comprehensive insurance policy. Only buy insurance from a third party if you can cover your own damage expenses.
Compare Car Insurance Online
Compare car insurance online and choose the one that meets most of your financial expectations. You can quickly get multiple four-wheel insurance offers online from the best car insurance companies in India.
Incurred Claim Ratio
Higher ICR, list satisfied customers, and more chances to fulfil your request.
It is always recommended to purchase a comprehensive car policy with additional benefits such as roadside assistance, zero depreciation, run-flat assistance and more.
What is Covered in Car Insurance Policy?
The costs of repair or replacement will cover any damage caused to your vehicle, because of an accident. You can get it repaired in one of our cashless garages, and in the event of a complete breakdown, you will receive your vehicle IDV as a reimbursement.
Loss or Damage Due to Natural Disasters:
Covers damage caused to your vehicle due to any natural disaster such as floods, typhoons, hurricanes, tsunamis, lightning, earthquakes, landslides, etc.
Loss or damage as a result of human-made disasters:
Covers damage to your car as a result of riot, vandalism, or malicious acts. Any damage caused during carriage by road, rail, air, or elevator is also part of the insurance coverage.
The insurance policy covers your losses in the event of car theft.
Personal accident cover:
This policy covers owner-drivers costs in cases when they are injured (or death) while driving an insured vehicle. Such coverage is available for accompanying passengers and can be added to the policy by paying an additional premium.
Third-party legal liability:
If a person, vehicle or property is injured or damaged due to an accident with your vehicle, you are still protected from accidental damage liability.
What is not Covered in Car Insurance Policy?
A car insurance policy does not promise that an insurer will settle your claims. Your request may be rejected in the following cases:
If you are caught driving under the influence of alcohol or drugs, you are not covered by the policy. It is also a punishable crime/offense.
Depreciation or Any Consequential Loss
Any subsequent loss that may arise due to the initial damage will not be covered. Likewise, damages due to a decrease in the value of a car are not part of insurance coverage.
Damage due to negligence
If your car is damaged due to negligent behavior, such as driving in a wet lane, or if the damage appears to be intentional, the insurance does not cover
No requisite add-on cover:
Some damages are only covered if there is special extra coverage. Otherwise, the standard policy will not cover such losses.
Breach of any term or conditions:
- Contrary to the policy’s language, for example, using your car for commercial purposes could jeopardize the coverage of your policy.
- The warranty does not cover normal wear and tear of vehicle parts and any mechanical or electrical damage.
- Loss or damage due to war or nuclear risk is also not covered.
- It is important to note that depreciation cover does not apply in the event of theft or total loss.