The owner is supposed to be responsible for obtaining car insurance online or offline when their vehicle hits the road. According to the Motor Vehicles Act of 1988, every car on the road must have car insurance. The car insurance policy may be costly at first, but it protects you from the enormous costs that arise in a difficult situation.
Car insurance is a policy that pays for the costs incurred due to an unforeseen accident or damage to the vehicle. The policyholder is responsible for paying a fixed amount (premium) to the insurer per the terms and conditions of the car insurance policy.
Let us look at the factors that can help to choose the ideal car insurance.
Policy forms:
In general, the car insurance company provides the following two insurance policies:
- Third-party liability insurance:
This plan is required for all vehicles on Indian roads. This policy covers property damage, accidental demise, and bodily injury to a third party caused by a mishap.
- Insurance coverage:
A comprehensive motor insurance policy covers your damages and the legal liability of a third party. It protects the vehicle from damage caused by natural disasters, man-made disasters, and external accidents. It also covers car theft and damage while in transit.
Recognize your requirements:
Individuals should first be aware of their needs and requirements from an insurance policy. The cost of the car insurance policy is determined by the coverage you choose for the vehicle. Make it clear what you wish to protect. Covering less important items may raise the premium cost.
Declared value insurance (IDV):
The insurer determines the current market value of your car. If your vehicle is stolen or damaged beyond repair, you may receive an amount comparable to your IDV. Different insurance companies provide different IDVs for your car. Before comparing the IDV offered by your insurer, keep in mind that it is roughly equal to the current market value of your vehicle. You can find the premium for any policy by entering some basic information into an online car insurance premium calculator. *
Add-ons:
Purchasing add-ons is an option with the comprehensive car insurance policy. Because they are optional coverage, only some insurance companies can provide you with them. However, the most helpful add-on covers are zero depreciation insurance and personal cover. *
Zero depreciation insurance:
This policy covers the entire cost of repairing the car, including depreciation and other incidental expenses that insurance companies incur to reduce their liability. If your vehicle is damaged in a collision, your insurer may pay you the total repair cost without depreciating the car’s value. *
Personal insurance:
The insurer includes the car’s depreciated value in the standard comprehensive insurance policy.
No claim bonus:
When purchasing car insurance online or offline, most insurers overlook this factor. If a policyholder does not file a claim during the policy’s active year, the insurer shall give the policyholder a No Claim Bonus. The insurer in NCB provides some rewards on premium costs to policyholders. Also, if you are switching insurers, you can ask your current insurer to assist you in obtaining the NCB with another insurer. *
* Standard T&C Apply
** Currently, there are 2 tax regimes in India – new and old. To get the tax benefit you desire, choose the correct one after consulting an expert. You can opt for a regime change during the next financial year.
# Visit the official website of IRDAI for further details.
## All savings are provided by the insurer as per the IRDAI-approved insurance plan. Standard T&C apply
Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.
