What is a Car Insurance Policy?
A Car Insurance Policy provides financial protection to you & your car against any losses arising due to car accidents, thefts, or other damages to the insured vehicle or third-party person or property.
Before buying any insurance you have to know what types of insurance are avaliable on the market, so that you can buy best plan for yourself.
Types of Car Insurance Policies in India
Car insurance is one of the primary financial protections that a car owner should have. A car insurance policy is necessary to get adequate insurance protection for your car. In india there are three basic types of car insurances. They are :-
1.Third Party Car Insurance
A third-party liability car insurance policy safeguards the car insurance owner from any type of legal liabilities that arise because of the involvement of the insured car in an accident. Under this policy, the insurer compensates against disability, injury, death, or property damage to any third party. In this way, a policyholder gets protection from the financial liability towards a third party.
2.Comprehensive Car Insurance
A comprehensive insurance policy provides coverage for third party liability as well as damages caused to your own car. In comparison with third party liability insurance, a comprehensive car insurance policy offers extensive coverage, more benefits & covers the damages caused to the insured car in case of an accident, collision, theft, etc.
3.Pay as You Drive Insurance
Pay As You Drive Insurance is also known as usage-based vehicle insurance. It allows a policyholder to pay the premium of the insurance according to the kilometers driven by the insured car. This will be useful for those who have multiple cars and hence do not use each of these very frequently. Currently, there are only a few insurers only who are offering this policy. It provides comprehensive coverage for own damage and third-party liability coverage is provided on a pilot basis for a term of a year.
WHY DO I NEED TO BUY A CAR INSURANCE POLICY?
Following are some reasons to buy a car insurance policy in india :-
#. It pays for the car damages as a result of a collision, accident, death or natural calamities, which otherwise would need to be paid by the insured.
#. It pays for hospitalization expenses in case of an accident.
#. It reduces the financial and legal damages that can arise from a third-party liability or damage.
#. With rider benefits like roadside assistance, zero depreciation the expenses are further reduced.
What are the points that should be Considerd While Selecting Car Insurance Policy?
1.What is covered
Checkout the inclusions and exclusions of both third-party insurance and comprehensive vehicle insurance policy. Only buy third party insurance if you can bear your own damage expenses.
2.Compare Car Insurance Online
Compare car insurance online and select the one that meets most of your financial expectations. You can easily get multiple four-wheeler insurance quotes online from the best car insurance companies in India.
3.Incurred Claim Ratio
Higher ICR, indicate satisfied customers and more the chances of your claim being settled.
4.Add-on Covers
It is always recommended to buy a comprehensive car policy with additional benefits like roadside assistance, zero depreciation, flat tyre assistance, etc.
Let's get an insight on what's get covered in normal car insurance policy.
Following things are get covered in a nornal car insurance :-
Loss or damage to the insured vehicle.
Loss or damage to your vehicle caused by accident, theft, fire, explosion, self-ignition, lightning, riots, strikes or act of terrorism, natural calamities.
Financial liability caused by the injury/death of a third party or damage to the property.
Personal accidental insurance cover.
And following things are not covered in a normal car insurance:-
Loss or damage if a policy is not in force.
Gradual wear and tear of car and its parts.
Loss or damage to the vehicle when driven by a person without a valid driving license.
Loss or damage to the vehicle as a result of intoxication due to drugs, alcohol etc.
Loss or damage to the engine as a result of oil leakage.
Loss or damage to the vehicle as a result of abuse of car manufacturer's guidelines.
Comments
Post a Comment