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What is Car Insurance?

Motor or Car insurance is no different than any other insurance except that it is mandatory whereas the rest are optional. Taking out insurance entails an agreement between the insurance company and the car owner wherein, the car owner pays premiums and the insurance company covers for loss or damage caused to the car. As we mentioned above, motor Insurance is mandatory in India, whether it is a commercial vehicle or a personal vehicle.

This insurance protects the owner from the monetary loss incurred due to accidents causing damage to the vehicles. Now, you would like to know what cost you would be incurring on securing insurance. So, the premium of your car is assessed/depends on various factors like the insured declared value, type of vehicle, age of the vehicle, fuel type, age of the insured, etc. The premium is payable by the person securing insurance for his vehicle. In case of an accident, he can make a claim and save a lot of financial and physical hassle.

What are the main coverages in Car Insurance?

First is liability coverage which provides you coverage if you cause damage to others and/or their stuff, then there is collision coverage which covers your car if you hit another car, person, or non-moving object. One insurance that supersedes all is Comprehensive coverage which protects you from accident, damage, hit & run, theft, fire, loss, etc.

1. Third-Party Liability Cover: This will include the cost of repairs/replacement of the damaged vehicle of third parties, hospitalization and treatment of third parties, and some liabilities arising out of the death of third parties.

2. Collision Coverage: In this the cost of repairs to your vehicle that has been damaged is reimbursed. To determine the cost of collision coverage, its age and Insured Declared Value are taken into account to arrive at the premium. The IDV is based on the market value of the vehicle.

3. Personal Accident Cover: This is for your protection, if you are an owner of the car, this will reimburse your medical expenses after an accident, thus making it quite important.

4. Zero Depreciation Insurance:In case your vehicle is damaged and you need to replace the parts. The insurer will consider the depreciated value of the parts for claim settlement. This cover will help you get the complete claim amount without accounting for any depreciation in the costs.

5. Comprehensive Car Insurance: This coverage gives you the highest level of protection as it includes liability for third parties, damage to your vehicle, personal accident cover, and all non-collision damage such as storms, floods, fire, and theft.

You can enhance a comprehensive car insurance policy with a choice of add-ons.

Why is car insurance beneficial?

Car insurance is beneficial in several respects as it mitigates the risk of driving your vehicle on the road.

Despite being so beneficial people were casual about it as they thought accident happens to others’ cars, not theirs. Considering this, in 1988 under Motor Vehicles Act, it was made mandatory to buy insurance before bringing on the road. A Third – Party insurance is compulsory and you must purchase one whether you buy a new or a used vehicle. This protects you against financial and legal liabilities towards a third party.

What are major car insurance benefits?

1. Damage or loss to the insured vehicle: It covers your vehicle from an accident, fire, or self-ignition, etc. besides, burglary or theft, strikes, riots, or terrorism. Another benefit of car insurance is that it covers loss or damage while in transit by rail, inland waterways, air, road, or lift.

2. Personal accident cover: Here you get personal accident cover for a pre-determined amount. Personal Accident cover protects permanent total disability, Death due to an accident. Furthermore, this cover can be taken for other passengers on for a pre-determined amount under the car insurance policy.

3. Large network of garages: Insurance companies maintain a large network of garages across the country. This ensures you receive cashless services in all these locations, in case the need arises. This feature makes it convenient to avail of repair services in case of any damage to your vehicle.

4. No claim bonus: One of the major advantages of having car insurance is the no-claim bonus. This makes you eligible for this benefit for every claim-free year. This may be available as a discount on the premium, which makes car insurance even more affordable.

How can you buy car insurance online?

To begin with, assess your needs regarding insurance, then compare insurance quotes online on some reliable web aggregators' sites. Now you can select a reputed insurance provider which provides a wide network of garages. Most importantly read the fine print of the policy document to avoid disappointment later.

For getting the appropriate quote, you’ll need to provide the following information:

• Name and address
• Driver’s license number
• Make, model, and year of your vehicle
• Vehicle identification number (VIN)
• Description of accidents, tickets, or insurance claims filed in the last several years

Now, you are ready to compare quotes online.

Insurers guide you through a simple process which you need to follow. Here you have the ease of selecting the coverage you want as well as add-on options also.

You can use their payment options method like a credit card, debit card, UPI or net banking, etc.

Now, your card shows up which you can print, or else you will receive one in the mail.

Bingo, you have your car insurance ready!

Though buying online can save time and money. But if you aren't sure what kind of car insurance you need, you may be better off working through a reputed Insurance Broker, doing it professionally for you.