Car Insurance & its Types
Car is one of the most important and beloved item of possession for any individual. In simple language, Car Insurance is a contract between the Customer and the Insurance Company wherein you pay a premium for a policy that will provide protection against every comprehensible risk related to your vehicle; damage, theft, death and injury in an accident, plus liability protection in case you are sued as a result of an accident (Third Party Liability).
Standalone Own Damage
Protects damages to your Car due to Accident, Theft etc
Third Party
Protects against legal liability due to death, disability or damage to property of other party involved in accident
Comprehensive
Protects damage to your own Car and Third Party as well in case of an accident
Add On Covers
Zero Depreciation
Insurance Company pays the claim of car only after deducting the depreciation value of the car. When you buy this Add-On, insurance company will not deduct any depreciation of parts while paying for claim.
Roadside Assistance
In this Add-On you would be able to get assistance in case your car breaks down. You can expect assistance for minor repairs, battery restart, spare key arrangement, phone assistance, emergency fuel and towing to nearest authorised workshop
Engine Protection
When a vehicle is stranded or submerged in flood waters, the engine of the car can be damaged when the car is started later on. Loss arising from this is referred to as consequential loss, arising from events outside of direct loss like accidents. With an Engine Cover/ Hydrostatic cover, all engine centric damages and costs arising from
Consumables
Under this Add-On, the car owner is given cover by car insurance company for costs related to nuts, bears and bearings, screen washers and engine oils and other such consumable item, as may be used for repair, in event of car getting damaged in accident.
Key Cover
Car keys can cost up to ₹ 15,000 and in case your loose the same, the cost of buying a new car key is reimbursed by insurance company if you have bought this cover
Invoice Cover
By taking this cover you would be able to get back the original invoice value and not just the Insured Declared Value. The cover is not available for imported vehicles
What to look for in Car Insurance?
Policy Type
While Buying a Car Insurance, always buy Own Damage cover which will cover your own car as well. Third Party only policies are mandatory as per law but it does not cover your own car.
IDV
IDV is the value of your Car as per insurance policy. You should always buy Car Insurance at an IDV which reflects Market value of your Car.
Add On Covers
There are many Add On covers available with Car Insurance but the one which you must have in your Car Insurance policy are Zero Depreciation, Roadside Assistance and Engine Cover.
NCB Details
Disclosure of correct Claim and No Claim Bonus (NCB) details are very important at the time of buying Car Insurance, if these details are found to be incorrect later on than it can lead to rejection of claim.
Claim Settlement
You are buying Car Insurance to protect your Car in case of any accident; therefore it is very important to check the claim settlement history and ease of making a claim of the insurer from which you want to take car Insurance.
Premium
Most of the people give highest importance to Premium while buying Car Insurance but in fact you should evaluate Car Premium basis all the above mentioned parameters. Whichever Insurance company suffices your requirement and provide best value at the lowest price should be considered for buying car insurance.
