A Beginner’s Guide to Car Insurance Coverage

Car Insurance

Do you own a vehicle? Did you know that there is one document you must keep with you at all times while driving your automobile on the road? That is, after all, your automobile insurance policy. The Motor Vehicles Act of 1988 requires you to obtain a vehicle insurance coverage if you own a car. If you’re new to vehicle insurance, however, here’s a primer on the essentials.

What is car insurance?

Car insurance is a type of general insurance that covers a variety of losses and damages to a vehicle. Generally speaking, there are two sorts of insurance policies:

  • Liability insurance for third parties
  • Four-wheeler insurance that covers everything

A third-party liability policy protects the car owner-driver from any loss or damage to a third-property, party’s as well as any bodily injury to a third-party. In most four-wheeler insurance policies, property damage is limited to Rs. 7.5 lakhs.

A comprehensive car insurance policy is wider and provides greater protection. Some of the losses covered are:

  • Theft
  • Accidental losses or damage
  • Natural catastrophes such as cyclones, hurricanes, earthquakes, fires, lightning, earthquake-caused floods, and so on cause loss or destruction.
  • Civil war, riots, terrorist attacks, and other events that cause loss or harm.
  • Liability to a third party

Car insurance is a type of general insurance, which means it must be renewed every year. Insured Declared Value refers to the value of the car and its accessories for insurance purposes (IDV). The IDV is computed by using a formula to depreciate the value of the car, engine parts, and accessories. Every year, the value of this asset decreases.

What is car insurance add ons?

Add-ons provide protection in addition to the four-wheeler insurance’s coverage. You must pay an additional charge in addition to your auto insurance premium to obtain these add-ons. When the prerequisites for these add-ons are met, however, they pay additional remuneration. You can choose from a variety of add-ons, including:

  • Zero depreciation:

This add-on does not deduct any depreciation from the vehicle’s or component’s value. As a result, claims can be made against a higher value. This is especially important for owners of high-end automobiles.

  • Full invoice value:

In the event that the car is stolen, this add-on will provide you with the complete invoice value, including any road tax paid. This is only available in the event of theft, not for repairs or other damages.

  • Engine protect:

This protects the engine in the event that it is flooded with water. It also covers engine damage caused by oil or lubricant leakage.

  • Windshield cover:

This reimburses the cost of a windshield in case of any replacement.

  • Key replacement:

In the event of a car theft, this add-on covers the expense of key replacement.

  • Substitute car:

This add-on covers the cost of a replacement vehicle while the primary vehicle is being repaired.

  • Emergency Roadside Assistance:

This covers the cost of roadside assistance in the event of a car breakdown in the middle of the road, such as mechanic fees, oil changes, tyre repairs, towing fees, and so on.

  • Consumables cover:

Consumables such as nuts, bolts, and oil are not covered by insurance in the event of repairs. However, with this add-on, the insurance provider will repay any fees incurred on that account.

  • Personal accident coverage for passengers:

This add on provides coverage for passengers over and above the coverage provided to the owner-driver. This covers medical expenses in case of injury.

  • Voluntary deductible:

A voluntary deductible is a financial burden that the insured is willing to accept. The insurance company will pay the claim amount over and beyond the voluntary deductible amount in the event of an insurance claim.

  • No Cost Bonus (NCB) protection:

When no claims are filed against a four-wheeler insurance coverage, the insurer awards the NCB. Even if a claim is lodged in the previous year, this add-on protects the NCB.

Aside from this, insurers may offer different add-ons. On the insurer’s website, you can learn more about the add-on, the add-on premium, and the benefit. The majority of insurers include a premium calculator that can be used to calculate the total premium due. You can choose the add-on and learn how much the premium will cost.

How to buy car insurance online?

Car insurance may now be purchased online thanks to the digital revolution. Car insurance can be purchased straight from the insurance company’s website or through an insurance aggregator.

However, before you acquire vehicle insurance, do some research on the company and pick which optional features you want in your coverage. After that, you can purchase vehicle insurance online and drive with peace of mind.



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