Car Insurance
Car insurance is a type of motor policy which provides protection against theft, third-party damages, man-made and natural calamities. With car insurance, you can get financial and legal protection against the damages caused by your car. A comprehensive car insurance policy also provides protection against damages caused to your own car. The Motor Vehicles Act of 1988 makes it mandatory for every car owner to insure his car with a third-party car insurance policy.
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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.
How to Choose Car 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 finalise 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: IDV or the Insured Declared Value is the maximum amount that your insurance company will settle in case your car is completely damaged or stolen. The car insurance premium is directly proportional to the IDV, which means that the higher the IDV, the higher will be the car insurance premium.
4. Check the Premium: Depending on car’s IDV, model, fuel type, age, and other factors, the car insurance premium accordingly varies. So, it is wise to first compare the car insurance premiums and then make the final decision.
5. 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 enquire 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.
6. 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 finalising. 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.
7. Network Garages: The network/cashless garages in car insurance help policyholders in getting their claims settled in a cashless manner. Thus, the greater the number of network garages, the more beneficial will it be for policyholders.
Why Choose InsuranceDekho for Car Insurance Online?
Car Insurance in Just 5 Minutes*
Wait no more! Get your car insurance online in just 5 minutes with our easy, quick and paperless car insurance policy issuance process.
Over 45 Lakh Happy Customers
InsuranceDekho is a favourable choice among insurance buyers. Our transparent and quick process, availability of top-rated four wheeler insurance and dedicated customer support team has helped us win the love and confidence of over 45 Lakh happy customers
7 Days Dedicated Customer Support
Our dedicated customer support team is available at your service all the 7 days of the week. Feel free to reach out to us for any four wheeler insurance related assistance, be it for policy purchase or claim settlement, we are always there to help you.
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Frequently asked question on used car
Car Insurance/Four Wheeler Insurance is an agreement between an insurance company and a car owner under which the former provides an insurance cover to the policyholder for financial damages incurred by his/her car in unforeseen events. Depending on the coverage, there are three types of car insurance plans – third party car insurance policy, standalone own-damage car insurance and comprehensive car insurance policy. Car insurance renewal online process provides instant e-Policy.
There are a number of benefits of owning four wheeler insurance. Firstly, it helps you meet the legal requirement of owning at least a third party car insurance cover. Moreover, a car insurance policy helps you meet financial liabilities that may arise towards a third party or own damages to your car due to a road accident or any other unfortunate event.
It is mandatory to own at least a third party car insurance policy while driving a car. If you get caught driving without it for the first time, you may be charged with a fine of Rs. 2,000 with or without imprisonment of a maximum of 3 months that can increase to a fine of Rs. 4,000 and/or jail of up to 3 months, when caught for the second time.
The premium rates for third-party car insurance price depend on the engine capacity of the car and is fixed by the IRDAI. However, the premium for standalone own-damage and comprehensive car insurance policies varies from car to car depending on a number of factors such as car’s MMV (Make, Model and Variant), RTO location, engine capacity, registration city, fuel type,
