What is Car Insurance
Car insurance is a type of insurance policy that efficiently takes care of expenses arising from unfortunate events, such as an accident, theft, and any third-party liability. Car insurance is the best way you can protect yourself and your car from financial emergencies, including any legal liability, resulting from physical damage, traffic collision, bodily injury caused to you, your car, or a third party. Various car-insurance-specific terms & conditions are subject to vary with legal regulations in different regions of the country.
Car Insurance or motor insurance covers for losses that you might incur if your car gets damaged or stolen. The premium amount of your car insurance is decided on the basis of Insured Declared Value or IDV of the vehicle. If you increase the IDV, the premium rises and if you lower it, the premium reduces. It is important for any policyholder to compare various auto insurance options before going for a car insurance renewal or buying a new policy.
Car insurance plan offers following benefits:
- 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
Best Car Insurance Companies with Claim Settlement Ratio 2018
- Insurance Company Incurred Claim Ratio Grievances Settled
- Bharti AXA General Insurance 89.09% 99.81
- Future Generali India Insurance 81.77% 99.86
- ICICI Lombard General insurance 78.91% 97.61
- Liberty General Insurance 77.29% 99.06
- National Insurance 89.91% 96.11
- Bajaj Allianz General Insurance 69.19% 99.28
There are primarily 3 types of Car Insurance -
Third Party Liability Coverage
Third Party car insurance provides cover against any legal liability to a third party caused when you are at-fault driver. It covers damage/injury caused by you to another person/property. A Third Party Liability cover is legally mandatory in India under the Motor Vehicles Act.
Collision coverage protects the insured financially against damage of their own car. It pays the insured for damage caused by collision which is usually an accident. Damage or loss due to theft or vandalism is not included in collision coverage.
A comprehensive coverage is extensive and includes damage of car, theft of vehicle, third party legal liability and personal accident cover. The policy coverage can be further extended by opting for addons like accessories cover, engine protector, zero depreciation cover, medical expenses, etc. This type of coverage is the most popular as it offers end-to-end coverage and thus less stress for the policyholder.
Smart Buying tips for your Car Insurance
Your premium for a Car insurance is determined by
Expert Tips For Cutting Your Car Insurance Costs
What is not covered in Car Insurance?
Following features are usually not covered in car insurance:
- Loss or damage if a policy is not in force.
- Gradual wear and tear of car and its parts.
- Loss or damage to vehicle when driven by person without a valid driving license.
- Loss or damage to vehicle as a result of intoxication due to drugs, alcohol etc.
- Loss or damage to engine as a result of oil leakage.
- Loss or damage to vehicle as a result of abuse of car manufacturer's guidelines.