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Car Insurance

What is Car Insurance?

Car insurance is a policy that is signed between two parties, the policyholder and the insurer to cover the losses that one might incur due to damages done to the car or in a case of theft. A pre-decided value is fixed according to the Insured Declared Value (IDV) of the vehicle for the premium to be paid by the policyholder periodically. These days, a policy seeker has many options available to choose from the various types of policies in the market. Each with its own uniqueness and offerings, car insurance has become a must in today's time. But the question still remains, what are the real advantages of car insurance? What security does a policy gives to the buyer? You can find all the answers here at Policy2renew.com which lets you compare and choose the best car insurance online.

Why Car Insurance?

 

 Coverage against loss or damage to the insured vehicle.

 Coverage against loss or damage to your vehicle caused by accident, theft, fire, explosion, self ignition, lightning, riots, strikes or act of terrorism, natural calamities.

 Coverage against financial liability caused by injury/death of a third party or damage to the property.

 Personal accident cover.

 

Importance of Car Insurance?

Keeping God photo inside a car can only protect you from 'buri nazar' even if you're a fabulous driver. Insurance was created to protect you from unexpected and unlikely events. Here are some scenarios where a car insurance can act as a life saver!

A Smart Way to Financially Cover Your Car

Car insurance is the smartest way to financially secure yourself and your car. Let's say, you own a 1-year-old standard hatchback with Insured Declared Value (IDV) of Rs. 4,00,000, but sadly, don't have car insurance.

For a premium of Rs. 100, Personal Accident Cover for the owner driver gets compensation up to a maximum Sum Insured of Rs. 2 Lakh in case of:

NATURE OF INJURY SCALE OF COMPENSATION
Death 100%
Loss of two limbs or sight of two eyes
or one limb and sight of one eye.
100%
Loss of one limb or sight of one eye. 100%
Permanent total disablement from
injuries other than named above.
100%

Type of Coverage Impacts Your Car Insurance Quotes


Third Party Liability Coverage :

This compensates the damages to a third party and their property. It’s best for those planning to insure their car just because it's mandatory (but we wouldn't recommend that!).

The quote that you get for TP cover is the sum of its components which include:

  • The basic third-party premium
  • Premium for Personal Accident Owner Driver Cover – Rs. 100
  • Goods and Service tax – 18%

The basic premium for third-party depends on the cubic capacity. These rates are revised each year by IRDA.


Comprehensive Car Insurance Coverage :

This covers damages to the third party, as well as your own car. It is best for those wanting to cover for losses for accidents and incidents such as theft and natural disasters.

The quote that you get for comprehensive coverage is the sum of its components which include:

  • Third-Party premium
  • Own Damage premium
  • Premium for Personal Accident Owner Driver Cover – Rs. 100
  • Charges for additional coverage (add-ons)
  • Goods & Services Tax – 18%

The own damage premium depends on Insured Declared Value (IDV), engine capacity and vehicle RTO. The IDV is the value of the car based on its ex-showroom price and depreciation percentage. An add-on cover depends on your car’s requirement and thus is a variable. The service tax is charged on the OD premium.

Additional Covers in Car Insurance




ZERO DEPRECIATION COVER

For the repair or replacement expenses of plastic, rubber, glass and other materials which would otherwise not be covered in a regular policy.

ENGINE PROTECTION

For times when the monsoons are at their destructive worst, and leave your car's engine and your tear glands vulnerable to flooding.


NCB PROTECTION

To continue enjoying a discounted premium on your no-claim bonus year-on-year, even after making a claim during the policy period.

INVOICE COVER

To recover as much as the car's on-road price or Insured Declared Value, in case of total loss (such as theft or a really bad accident).

Inclusions and Exclusions in Motor Insurance


INCLUSIONS EXCLUSIONS
Own Car Damage for all damages that occur to your car due to accidents Damages caused if you’re caught driving under the influence of alcohol
Personal Accident Cover if you’re injured in an accident, the insurer compensates you Loss and damages that are caused due to war and nuclear risk
Financial protection from Natural Calamities such as floods, earthquakes, etc. Accidental Damages caused while you were using your car for illegal activities
In case of Theft, your insurer will pay an amount equal to your IDV Losses incurred while driving without valid license
Man-made disasters including riots, strikes, fire, and terrorism is covered Regular mechanical expenses due to consistent wear and tear

Eligibility/Documentation Required for Car Insurance

Purchasing motor insurance online requires minimal documentation. If you are buying a new insurance policy, then you need to fill a proposal form and a copy of Registration Certificate (RC).

Getting a car insured requires minimal documentation. For a new policy, you must submit the filled up proposal form and copy of the Registration Certificate (RC). For renewals, you will need copy of the RC (Registration Certificate) along with the copy of previous insurance policy.

In case of renewals, you need to provide a copy of Registration Certificate (RC) along with the previous insurance policy. It is advisable for you to fill your details carefully as by providing accurate and complete information you will face no issues at the time of a claim.

Carefully fill in your complete details. This is an important step and will save you a lot of hassle during claim time.

FAQ's on Car Insurance

The sole purpose of buying insurance for your car is to get adequately compensated for any damages and losses. To ensure that you raise a successful claim, it’s necessary to keep all the relevant documents at hand. While insurance companies try their best to avoid pesky paperwork, here is a list of documents you need to have on you:

  • The copy of the Registration Certificate and Tax Receipt of your car
  • The proof of valid insurance document
  • Copy of your Motor Driving License
  • Repair Bills and Payment Receipts in case of reimbursement
  • Copy of FIR/Panchanama in case of Theft or Third Party damage/death/bodily injury

The best way is to use an online insurance web aggregator at the time of purchase or renewal. Online insurance web aggregator will provide free quotes and comparison services so that you can take advantage of the same and choose the best insurance policy for yourself. Through this, you will be able to buy the cheapest policy for yourself.

With the availability of online platform, buying insurance is a very simple and hassle-free procedure. However, if the insurance company demands, you would need to keep the following documents handy.

  • The copy of your Registration Certificate (RC) of your vehicle
  • The invoice copy for a new car
  • Previous insurance policy
  • No claim bonus reserving letter, whenever required

We all know that too many options usually implies too much confusion. That is why, before choosing, one must compare plans on the basis of:

  • Car Insurance Company: Check the company’s past records for the number of claims settled and the time taken to settle them.
  • Premium and Coverage: Balance between the premium you are willing to pay and the coverage that you will actually end up needing. Also, don't forget to include add-ons accordingly.
  • Cashless Garage Network: Be sure about the insurer’s network garages in your area. You must remember that you can avail cashless services only at these garages, so that's always tricky.

A car insurance policy will be valid for a particular period. After this period, the insurance policy lapses. It is advisable to renew it in time so as to benefit from the No Claim Bonus (NCB). If the car insurance lapses and you renew it within 90 days you may still benefit from the NCB. Post 90 days, you need to initiate the process by filling details all over again and getting your car inspected by the surveyor. Also, as the NCB is lost it would result to higher premiums.

You will require your existing car insurance policy number and registration/engine number for online car insurance renewal.

If any company rejects your car insurance policy or renewal of the same, then you can take help of online insurance companies that can provide you the needful service easily. There are many companies such as New India assurance, ICICI Lombard and many more. So don't lose hope you will surely get the best one for yourself.

Yes, you can switch insurance company whenever you want. But you have to keep in mind that most of the companies will not pay you back. You can ask your insurer about the refund system before switching your policy or check you policy documents carefully. There are many insurance companies that offer car insurance at a cheap price such as ICICI Lombard, New India Assurance and many more.

When you compare car insurance quotes on Policy2renew.com, you get to customize your car insurance premium based on the different insurers available, the IDV and add-on covers. You can schedule inspection of your car if required by the insurance company. In case you do not understand the plan that you choose or any other aspect of the plan that you wish to buy, then our expert advisors are available to guide you through the process.