Car Insurance
What is Car Insurance?
Car insurance is a contract between a car owner and a general insurance company wherein the latter promises to protect the car owner from financial losses which may occur due to an unfortunate event involving his/her car. Depending on the scope of coverage, there are 3 types of car insurance policies - Third-Party Car Insurance, Standalone Own-Damage (OD) Car Insurance, and Comprehensive Car Insurance. To continue to avail the benefits of these policies, the car insurance renewal should be processed on time by policyholders.
Types of Car Insurance
Comprehensive Car Insurance
A Comprehensive Car Insurance policy is the most extensive car insurance cover under which an insurance company is liable to pay for financial liabilities incurred towards a third party as well as for the own-damages sustained by the insured’s car. In addition to road accidents, the policy is applicable in the event of natural calamities, man-made disasters, self-ignition or lightning, explosion, fire, theft, etc.
Third-Party Car Insurance
Third-Party car insurance policy is a mandatory requirement for driving a car in India. It is the most basic car insurance plan and is thus also called Liability Only Car Insurance Policy. Under this cover, the insurance company is liable to pay for the bodily injuries, permanent disability, temporary disability as well as death of the third party caused by an accident involving the insured’s car. This plan also provides coverage for property damage incurred by the third party up to Rs. 7.5 Lakh.
Own Damage Car Insurance
In September 2019, the Insurance Regulatory and Development Authority of India (IRDAI) introduced the standalone Own-Damage car insurance policy. Under this plan, the insured gets insurance coverage only for the own-damages sustained by his/her four-wheeler in a road accident, natural/man-made calamity, fire, explosion, theft or any other mishap. A standalone own-damage car insurance policy aims at offering the insured the flexibility in terms of the insurance provider they want to choose.
car insurance, Cheap car insurance, cheapest car insurance, cheap, auto insurance, car insurance near me, auto insurance quotes, vehicle insurance, state firm auto insurance, cheap car insurance for young drivers,
How to Choose Four Wheeler Insurance Policy Online?
You can choose an ideal car insurance online plan by following some points given below:
1. Select the Type of Plan: Assess your car insurance needs and finalize the type of policy you need. Choose a third party cover or comprehensive cover based on your requirements.
2. Compare Policies: You should compare different car insurance plans online. The comparison makes it easier to pick the best car insurance plan as per your budget and needs.
3. Check for IDV and Premium: The IDV refers to the current value of your car in the market and the amount that an insurer can maximum pay you in case of total loss or car damaged beyond repair. A higher IDV can give you extended coverage but it increases the premium as well. So, check for the amount of IDV and select the one which you can afford and require.
4. Ask for Add-on Covers: Add-on covers expand the coverage of your policy. You can buy it by paying an additional premium. You should inquire about the add-ons and choose the one which suits your needs the best. However, you can have these covers only with the comprehensive insurance plan.
5. Look for the Claim Process: Look for an insurance company that has a simple and swift claim process. To confirm the quality of the claim process of insurers, you can check their Claim Settlement Ratio (CSR) before finalizing. It refers to the percentage of claims settled by the insurer in a year. It is better to buy a plan from a company with high CSR.
Benefits of Buying Car Insurance?
A car insurance offers a host of benefits to its policyholders. The key benefits are as follows:
Helps You Stay Legally Compliant
A car insurance helps you stay legally compliant as according to Indian Motor Tariff, every car owner is mandatorily required to have at least a third-party car insurance policy. The absence of which is punishable with a fine of Rs. 2,000 and/or imprisonment of up to 3 months.
Protection Against Third-Party Liabilities
A car insurance policy helps you mitigate third-party liabilities such as bodily injuries, temporary/permanent disability, death as well as property damage. While, the compensation of third-party property damage is limited to Rs. 7.5 Lakh, there is no compensation cap in case third party bodily injuries, disability or death.
Protection Against Own-Damages
A car insurance policy helps you keep yourself financially secured against the own-damage expenses of your car. Damages incurred in road accidents, natural calamities, man-made disasters, fire, explosion, vandalism, etc are covered under standalone own-damage as well as comprehensive car insurance plans.
Coverage Against Theft
A car insurance policy also provides coverage in case of theft of your car. In case your car gets stolen, your insurance company provides you with your car’s Insured Declared Value (IDV) which corresponds to the market price of your car. Personal Accident Cover With a car insurance policy, you can also get a personal accident cover of up to Rs. 15 Lakh which offers a coverage in case of death, bodily injuries as well as disability of the policyholder in a car accident.
Personal Accident Cover
With a car insurance policy, you can also get a personal accident cover of up to Rs. 15 Lakh which offers a coverage in case of death, bodily injuries as well as disability of the policyholder in a car accident.
car insurance, Cheap car insurance, cheapest car insurance, cheap, auto insurance, car insurance near me, auto insurance quotes, vehicle insurance, state firm auto insurance, cheap car insurance for young drivers,
Benefits of Buying Car Insurance Online
Buying car insurance online comes with a range of benefits which are as follow:
1. Convenience: The online car insurance purchase and renewal process are much more convenient than a traditional offline facility. Earlier people had to visit the insurance company’s branch or meet their insurance agents, but with the online car insurance feature, they can now compare and select a policy at the comfort of their home.
2. Minimal Paperwork: When you buy a car insurance plan online, it involves minimal or even zero paperwork with a digital proposal form, the requirement of scanned documents copy, etc. Also, a soft copy of the policy document is sent to the registered email ID after its purchase. In simple terms, an online car insurance purchase helps you avoid the tedious process of documentation.
3. Affordable Process: To purchase a car insurance plan online is economical when compared to buy a policy offline. The overall operational cost goes down when car insurance is sold online as it eliminates the insurance agent and other mediators from the process that also reduces their commission expense. Hence, insurers can offer you car insurance plans at reduced rates.
4. Easy to Check Credibility: It becomes much easier to check any insurance company’s credibility online in comparison to offline. You can easily find the Incurred Claim Ratio, Claim Settlement Ratio, claim settlement process, and reviews to know the actual working quality of an insurance company. Getting all these details offline can be tedious and time-consuming. Also Read: Reasons Why Buying Car Insurance Online Is A Smart Choice.
5. Make the Process Faster: The car insurance renewal online or buying process is faster any day than the offline process. It takes a few minutes to buy a car policy online by just entering basic details about you and your car. While, in the offline process, you have to meet an insurance agent or visit the insurer’s branch and fill lengthy forms. Hence, online car insurance makes the processes faster.
car insurance, Cheap car insurance, cheapest car insurance, cheap, auto insurance, car insurance near me, auto insurance quotes, vehicle insurance, state firm auto insurance, cheap car insurance for young drivers,
Why Should You Buy A Comprehensive Car Insurance Policy?
Every car owner should purchase a comprehensive four-wheeler insurance policy due to several reasons. Here are its top benefits:
- Third-Party Liabilities: Comprehensive car insurance provides you coverage for third party liability, which will help you if your car gets involved in an accident that leads to damages sustained by the third party. Also, it gives you legal compliance with the basic cover in hand while driving a car.
- Own Damage Cover: Apart from the third party liability, comprehensive car insurance also gives coverage for damages or losses incurred by your car due to an accident, theft, fire, burglary, man-made disaster or natural calamities. Also, it covers damage or loss to cars while in transit by rail, air, and so on.
- Personal Accident Cover: Personal accident cover is also offered with comprehensive car insurance plans that give protection against permanent total disability as well as death due to an accident. This cover can be extended for other passengers based on your car’s seating capacity for a specified amount.
- No Claim Bonus: One of the biggest benefits comprehensive car insurance provides is the No Claim Bonus (NCB) feature. Under this benefit, a policyholder gets a discount on the next year's premium for not making any claim in a policy year. With every claim-free year, discounts accumulate making the car insurance more affordable.
- Cashless Claims: The cashless car insurance claim is a significant aspect of every policy. Insurance company’s with a large network of garages across the nation ensure active cashless services in all these locations. This facility makes it convenient for policyholders to avail the repair services without paying anything.
- Third-Party Liabilities: Comprehensive car insurance provides you coverage for third party liability, which will help you if your car gets involved in an accident that leads to damages sustained by the third party. Also, it gives you legal compliance with the basic cover in hand while driving a car.
- Own Damage Cover: Apart from the third party liability, comprehensive car insurance also gives coverage for damages or losses incurred by your car due to an accident, theft, fire, burglary, man-made disaster or natural calamities. Also, it covers damage or loss to cars while in transit by rail, air, and so on.
- Personal Accident Cover: Personal accident cover is also offered with comprehensive car insurance plans that give protection against permanent total disability as well as death due to an accident. This cover can be extended for other passengers based on your car’s seating capacity for a specified amount.
- No Claim Bonus: One of the biggest benefits comprehensive car insurance provides is the No Claim Bonus (NCB) feature. Under this benefit, a policyholder gets a discount on the next year's premium for not making any claim in a policy year. With every claim-free year, discounts accumulate making the car insurance more affordable.
- Cashless Claims: The cashless car insurance claim is a significant aspect of every policy. Insurance company’s with a large network of garages across the nation ensure active cashless services in all these locations. This facility makes it convenient for policyholders to avail the repair services without paying anything.