CAR INSURANCE FAQs

What is Car Insurance?

Car insurance is a contract between you and the insurer, wherein the insurance company offers extensive coverage to protect your car from every possible risk. It basically covers accidents, thefts, and any third-party liabilities based on the insurance purchased. It covers against natural and man-made calamities. It acts as a boon to the policyholder in case of emergencies.

Why do I need a Car Insurance policy?

You’re the proud owner of your car; hence it is your responsibility to protect it from potential damages that may arise due to accident, or theft. In India, it is mandatory to have Third-party Insurance to drive on roads; otherwise, it is considered a legal offence. One more reason you need car insurance policy is for the safety of others, they could be fellow drivers, pedestrians, or your passengers.

Can I renew my car insurance policy online?

Yes, you can renew your car insurance policy online. Renewing your policy is easy; you just have to follow the below steps:

  • Enter details like car registration number, policy number, and personal details like mobile number and e-mail Id.
  • Next, choose the plan and tenure.
  • If you wish to choose any add-ons or drop any riders, you can alter your plan.
  • Finish payment.
  • Review the receipt.

Remember, reviewing the policy on time is important to stay protected against the damages due to accidents. Also, make sure to renew the policy on or before the due date to avoid paying any penalty charges.

How to renew Four-Wheeler Insurance?

You can renew your four-wheeler insurance offline as well as online. Visit the office of the insurer for renewing the insurance offline. You can visit the website of the insurer for renewing it online.

What documents are required to file a car insurance policy claim?

In case of accidents and damage to the vehicle, you have to present the following documents to make a car insurance claim. This includes the copy of online car policy, claim form duly signed, original repair bill, proof of release and cash receipt, valid driving license copy, valid RC copy of the vehicle, FIR (if necessary as in the case of highway accidents, theft and major third party injury or damage) and any other document that is required by the insurance company to ensure seamless settlement of claim.

How to file a Car Insurance claim?

Contact the insurer and give them full knowledge about the accident. Get an FIR from the police. Record the details of the third-party driver and witnesses. A surveyor will record the damages to the car.

What is Roadside Assistance Cover?

Roadside assistance is an add-on cover you can buy at the time of issuance of the car insurance policy. It can cover battery jumpstart, repairs, car towing, etc.

What is Zero Depreciation Cover?

Over a period, the value of cars depreciates. Car insurance pays you the claim amount after deducting the depreciation. When you purchase zero depreciation cover, the insurer offers protection without deducting depreciation.

What is IDV and how is it decided?

IDV refers to Insured Declared Value and is the maximum sum assured fixed by the insurer that is offered in case of theft or total loss of a vehicle. In short, IDV is the current market value of your vehicle. It is usually estimated based on the manufacturer’s listed selling price of the model and variant of the vehicle (including additional accessories) at the beginning of the car insurance policy. It is determined after adjusting depreciation for every year. In case your four-wheeler is stolen or ends up badly damaged to an extent that it is beyond repair, the car insurance claim amount payable is calculated based on IDV. This is why it is very essential that your vehicle is insured for the right IDV. One should utilize a car insurance calculator for the said purpose.

What is NCB and in what way does it benefit me?

The full form of NCB is No Claim Bonus. It is presented to the owner of the vehicle, who is also the policyholder. In cases when not even a single claim is made during the entire term of the policy, you are entitled to a discount on your premiums. You can avail up to 50% discount on your premiums if you consecutively do not make any claim every year. In case you do make a car insurance claim, NCB does not come into action. You can transfer NCB to your new vehicle if the vehicle is of the same class.

What is Third-party Car Insurance?

Third-party car insurance covers you against the damages caused to the third-party. The insurer will offer cover for the cost of repairs to the third-party property in case of an accident. It can also cover death and injuries to the third-party. But it will not cover damages to you and your car.

What is a third party risk policy?

This car policy is made compulsory by law. It covers the vehicle’s owner against risks according to Section 146 of the Motor Vehicles Act 1988. The main aim of this third party car insurance policy is to safeguard any third party. This insurance policy pays compensation for the damage caused to the property of a third party or death caused owing to bodily injuries of a third party. It does not include damage to your own vehicle.

What kinds of car insurance coverage exist?

There are many types of car insurance coverage. However, some policies are mandatory by law while the others are optional. The Government has made third party car insurance coverage, which covers property damage and injuries you cause to another person, mandatory. This car policy does not cover your own injuries and property damage. In certain states, personal injury protection coverage is another plan that is made mandatory. It offers coverage to pay for medical expenses that are associated with an accident, no matter who is at fault. Some of the optional coverage plans include comprehensive coverage, collision coverage, rental reimbursement coverage, and towing and labor coverage. You can purchase such a car insurance policy online these days.

I am a careful driver. Do I really need car insurance?

Regardless of whether you are careful on the road or not, four wheeler insurance is a prerequisite, after all, it is made mandatory by the law. So if you are driving without any car insurance (third party car insurance at the very least), you need to know that you are doing so illegally. The absence of a four-wheeler insurance policy means you cannot tax your vehicle. It offers coverage for you, other vehicles on the road and the general public. Use a car insurance calculator to understand how much car insurance would cost you, before buying.

What if someone else is driving my vehicle and an accident takes place?

The insurance on a vehicle is applicable even if another person is driving the vehicle, with your permission. This is because liability follows the vehicle. Generally speaking, the liability insurance of the person driving your vehicle needs to pay should the amount of the loss go above your car policy limits.

Should I make a claim for every accident or damage occurred?

It is wiser to refrain from making small claims. During the times when your vehicle is damaged, it is better to get an estimate for the repairs required. If the No Claim Bonus you have to let go of in the forthcoming year goes beyond the estimate, it makes sense not to raise a claim and pay for the damage yourself.

Is it cheaper to pay monthly or annually? Also, will my car insurance premiums get cheaper if I stay with one insurer itself?

It is always cheaper and cost-effective to pay upfront annually. When it comes to premiums getting cheaper if you hang on to a single insurer, this is unlikely, particularly in the long run. If a customer does not look around for better and most effective deals, the insurer can take advantage of the situation and may charge you higher renewal premiums.