A car is an expensive means of transport for many people. This makes it a valuable asset which you wouldn’t like to lose owing to an unfortunate accident or theft.
The solution to this problem is getting a comprehensive car insurance. By getting your vehicle insured you protect your car and bear the financial loss in case your car gets stolen, destroyed in an accident or breaks down. In addition to theft and accidents, car insurance also protects your vehicle against natural and man-made calamities like fire, explosion, riots, terrorist attacks, and natural disasters.
In India, it is mandatory, by law to get your vehicle insured.
Technical terms related to car insurance policy
- Premium: It is the fixed amount that you need to pay to the insurance agency to keep the policy in effect.
- Car Insurance Policy: The premium amount of the policy will depend upon the Insured Declared Value (IDV). This affects how high or low that amount will be. Many insurance firms have contacts with the manufacturers and provide you with the optimum value.
- Natural Calamities: This section includes protection against the following phenomenon: landslide, self-ignition, lightning, explosion, earthquake, flood, typhoon/hurricane, inundation, and hailstorm.
- Man-made Calamities: Under this, you will be covered against threats like burglary, theft, damage during transit, an accident caused due to external agents, terrorist activities, riots, and strikes.
Features of a Car Insurance
A car insurance firm provides the following features to the policyholder:
- There are two kinds of policies, comprehensive and third party.
In third-party policy, which is mandatory, the company covers the injury/death of an individual (third party) or damage to their property caused by your vehicle. It includes a compulsory personal accident cover for the vehicle owner/driver as well. This doesn’t cover any damage to your vehicle.
The comprehensive policy covers the loss or damage to your vehicle. This covers damage caused by any third party or by the owner themselves. This is not a mandatory policy, but one should avail it, to not leave things to chance.
- Risks covered are an important factor to take care of when buying insurance. One should check the things against which the policy provides cover before signing the deal. This includes both man-made and natural disasters.
- The insured value of the car is quoted by the manufacturer, and it reduces as the vehicle gets older. According to Motor Vehicle Act, 1988 any damage to third party property is covered up to INR7.5 Lakhs for car (4 wheelers) and ₹1 Lakh for 2 wheelers. There is no limit for injury/death of the third party.
- The premium that you need to pay for your car depends on several factors. Some of the primary factors are the vehicle type (model, age, fuel used), city, the profession of the owner, the age of the owner and the modifications made to the vehicle.
- Premium Saving options such as no-claim bonus (NCB) allow you to avail a discount on the premium amount if you haven’t filed a claim during the previous year. This discount increases after each year without a claim and can stack up to 50%.
- You can avail add-ons to enhance the policy and include aspects that aren’t covered by the regular policy. These include no-depreciation policies, no-claims bonus, and other features.
- Like many health insurance policies, vehicle insurance provides cashless facilities in case you get your vehicle repaired at their authorized facility.
- The policy is portable, which means you can transfer the policy without losing any non-claim policy that you are eligible for.
Which Is the Best Car Insurance Plan?
Now that you have understood all the facts related to car insurance policy, you might be looking forward to purchasing one. This section will help you choose the best policy to suit your needs.
When it comes to getting car insurance these companies are the best in India.
- Bajaj Allianz General Insurance Co. Ltd.
In India, Bajaj Allianz is one of the top-most private insurance companies. It is rated as one the best in terms of customer satisfaction, cashless claim settlement and has several features in its policies.
Some of its features are:, Doorstep surveyor facility, 24X7 Towing assistance, Instant SMS Updates on Claims and Cashless settlement at 1500+ network garages.
- HDFC ERGO General Insurance Co. Ltd
HDFC is a great brand when it comes to buying vehicle insurance. It has the highest claim settlement ratio amongst the private firms when it comes to vehicle insurance. HDFC ERGO is ISO 9001:2008 certified and has received a rating of iAAA from ICRA.
- Tata AIG General Insurance Co. Ltd.
The insurance company began in 2011 and became one of the dominating firms in motor insurance thanks to its hassle-free claims. It provides free car pick up, the warranty on repairs, 7-day claim settlement among other features.
So, hope this article has helped you in understanding the needs and benefits of getting car insurance and provided with the details that will make the process easier.