Types of car Insurance
In India, general insurance companies offer three types of car insurance policies: third-party, comprehensive, and stand-alone insurance. You can select a car insurance plan based on your budget and requirements.
Third-party car insurance, Mandatory for all vehicle owners on Indian roads, the third-party or liability-only policy compensates for death/injuries to a third person and property damage (up to Rs 7.5 lakh). However, it excludes damages to the insured car.
Comprehensive car insurance, This policy covers both third-party liabilities and own damages. It allows for cashless repairs at network garages and can be supplemented with add-ons like roadside assistance or zero depreciation cover by paying extra premium.
Standalone damage insurance, Financially covering accidental damages to the insured car, this policy can be purchased alongside an active third-party insurance policy. While a third-party cover is mandatory, standalone insurance provides financial assistance for own damages and third-party liabilities.
Benefits of Buying Car Insurance
Buying a car insurance policy comes with several benefits. have a look at them.
Car insurance in India provides financial protection against various risks such as accidents, theft, natural disasters, and third-party liabilities, shielding you from significant financial losses.
Having car insurance is mandatory by law in India. It ensures compliance with legal requirements, preventing any legal penalties or fines for driving uninsured.
Car insurance covers third-party liabilities, including compensation for injury or property damage caused to others by your vehicle, reducing your financial burden in such situations.
Comprehensive car insurance offers coverage for own damages to your vehicle, including repairs or replacement costs due to accidents, vandalism, or theft, providing peace of mind.
Car insurance policies often come with add-on benefits such as roadside assistance, zero depreciation cover, engine protection, and more, offering additional assistance and convenience when needed.
Many car insurance policies offer cashless repair services at network garages, streamlining the claims process and minimizing out-of-pocket expenses during vehicle repairs.
Car Insurance Checklist
ID Proof
When submitting your personal details like name, address, age, etc., you'll need to provide a copy of your ID proof, which can be your Aadhaar Card, Driver’s License, Passport, Voter ID, or any other government-issued photo ID.
Details of Your Car
Next, gather the details of your car including make, model, variant name, registration number, engine capacity, fuel type, RTO location, etc. Keep these details readily accessible.
Types of Car Insurance Plans
There are three types of car insurance policies based on coverage: third-party car insurance, standalone own-damage car insurance, and comprehensive car insurance. While third-party insurance is mandatory as per the Indian Motor Tariff, comprehensive insurance offers maximum coverage.
Driving Without Insurance is Punishable
Every car owner must have at least third-party insurance as per the Indian Motor Tariff to remain legally compliant on Indian roads. Failure to have valid insurance can result in a fine of Rs. 2,000 and/or imprisonment of up to 3 months.
Premium Calculation
Premium calculation depends on factors like car's cubic capacity (for third-party insurance) and various factors for other types. Use an online premium calculator to make an informed decision.
Insured Declared Value
The Insured Declared Value (IDV) is your car's current market price, payable in case of total loss or theft. Opt for an optimal IDV to balance premium cost and claim amount.
Car Insurance Add-ons
Additional coverages, known as add-ons, can be opted by paying extra premium. Common add-ons include zero depreciation cover, engine cover, tyre cover, no-claim-bonus, loss of luggage, etc.
Network of Garages
Insurance companies have partnerships with network garages for cashless claims. Utilize these facilities for easy claim processing.
Claim Settlement Ratio
Claim settlement ratio indicates the percentage of claims settled by an insurance provider out of the total claims received in a financial year. Higher CSR reflects better service.
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