Types of Car Insurance and How to Compare Car Insurance Online
Car insurance or motor insurance is a protection cover that shields your car from human-made and natural disasters. In India, all vehicle owners must have a car insurance policy. Driving without valid insurance cover is a punishable offence, and it can attract a hefty fine. When a car is on the road, it can be subject to accidents, scratches, dents, and other issues from regular usage. Having car insurance comes handy to get financial aid during such moments and save your money on such expenses.
A car insurance policy does not just cover the expenses incurring from small accidents. It also covers major damages that can occur due to theft, strikes, military attacks, transit by road, riots etc. The more comprehensive your policy is, the more benefits you get. Therefore, you should get a policy with comprehensive coverage, as it will help you during your hour of need. Accidents never come announced, the least we can do is be prepared for such situations.
What are the different types of car insurance policies in India?
In India, there are primarily two categories of car insurance plans –
- Third-party liability car insurance.
- Comprehensive car insurance.
Third-party liability Insurance
In any car insurance policy, the first party is the insured, i.e., the owner of the car, the second party, is the insurance company who is providing the insurance, and the third party is the owner, driver or the passenger of any vehicle that is involved in an accident with an insured car. A pedestrian on the road too is considered a third party. Along, anyone whose property is damaged by the insured car is also considered as thirdparty.
The insurance policy aims to cover for the damage or bodily injuries that your vehicle may inflict on other vehicles, property or pedestrian. It is basic car insurance, and it is mandatory to have a third-party liability insurance cover in India.
Comprehensive car insurance policy
The third-party liability insurance is compulsory, but a comprehensive car insurance policy is optional in India. The comprehensive policy comes with a wide range of coverage that can be beneficial to you in the long run. A comprehensive policy not only protects your car from damages like fire, theft, riots, floods, earthquake etc. It also gives third-party liability coverage.
What are the benefits of a comprehensive car insurance policy?
Having a car insurance policy provides the following benefits:
- It offers third-party damage coverage that involves your car.
- It covers the damages that done to your vehicle in case of an accident.
- Covers against the damages to the vehicle because of vandalism, theft, fire, riots etc.
- Cashless payment system if you repair your vehicle from partner garages of the insurance company.
- No claim bonus or NCB is offered on renewal if you do not claim during a policy year.
What are the general add-on covers provided by a car insurance policy?
When you buy a comprehensive insurance policy, you also get the option to get extra coverage at an additional cost. Most car insurance companies in India provide add-on benefits at a discounted rate. The best part about add-on coverage is that there are plenty of options to choose from, and you can pick the cover that suits your requirement. Some of the most common add-on features are:
All insurance companies depreciate the price of certain parts of your car during a claim. If you purchase the add-on cover of zero depreciation, no amount will be deducted while settling a claim.
If you have an engine protection cover, you can get reimbursement for the amount spent in repairing the engine due to accidents or mechanical issues. If you own an expensive car, it is advisable to have this add-on cover as the engine repair cost can be incredibly high.
This cover is crucial if your car suddenly breaks down in the middle of the road due to some glitch. The insurance company will send support to you anywhere and at any time. Usually, the roadside services include towing, change of flat tyre, getting a mechanic, and refuelling.
How can you compare car insurance online?
Before you purchase any car insurance online, ensure that you compare the features first and keep the following parameters in mind:
- When you select an insurer, check the claim settlement ratio and the overall reputation of the insurance company.
- Select a plan that has the most extensive coverage and at an affordable price.
- Car insurance premium also depends on the percentage of deductible you select. If you select a policy in which you volunteer to pay the deductible, then the premium amount should be less.
How can you buy a car insurance policy online?
Purchasing car insurance online is easy and quick. You need to visit the website of the preferred insurer and check the features they offer. You can then compare it with other policies and eventually buy a plan that suits you best.
So, if you’re looking at purchasing a car insurance policy, compare the features and get the best car insurance deal online.