What is Car Insurannce?

Car Insurance is a contract you and your insurer enter into, to protect you from financial damages caused by unforeseeable circumstances like accidents, theft, and even natural calamities. The Government of India has made it mandatory for all car owners to have a third-party car insurance policy. This policy covers the damages caused to life and property of individuals, other than you, affected by an accident your car unfortunately becomes a part of. The other most common form of insurance is Comprehensive Car Insurance. It helps you cover majority of the liabilities you might attract if your car gets damaged in a social unrest, natural calamity, or even gets stolen in a case of theft.

WHY SHOULD YOU BUY A CAR INSURANCE POLICY?

Buying a car is one thing and maintaining it is something that is completely different. The roads are some of the most uncertain places, where negligence, ignorance, carelessness or just sheer bad luck can bring about a lot of consequences to you and your car.

And as a car owner, these consequences do cost you a lot. From a small dent on the trunk to major accidents and natural disasters, a car on the road is subjected to diverse threats on a daily basis. Moreover, money is involved in every stage of the car's recovery and safety. That's why a car insurance policy becomes inevitable in today's day and age.

If you haven't taken four wheeler insurance for your car yet or if you've just bought a new car and are looking for a car insurance policy, here are some extensive reasons you should get one today.

Covers Expenses On Own Damage

Apart from accidents, cars can be damaged due to natural disasters, natural instances or their own technical glitches and malfunctions. Regardless of the reason, expenses involved in getting the car serviced. That's why it's ideal to buy a car insurance as it covers damages arising due to uncommon reasons.

Third-party Liabilities

A car is a machine that is subjected to technical issues. A car gone out of control is a threat to civilians and public properties. If there has been an accident with you on the driver's seat, you are bound to compensate for the damages caused. If you have a car insurance policy, your insurance company would take care of the expenses.

Personal Accidents

Having a four wheeler insurance is like driving with a lifeguard. There is a backup you have to cover the expenses incurred due to car accidents. A proper car insurance policy also compensates for permanent disability arising due to a car accident. This is an ideal financial support that is inevitable for families.

Mandatory By Law

If you are a car owner, you should mandatorily have a minimum of a third-party car insurance according to the Motor Vehicles Act. Failing to have is an offence and you could be penalized for it when caught.

Extended Benefits with Add-ons

Apart from the benefits you just saw, you could include add-on benefits such as zero depreciation cover, consumables cover, breakdown assistance, convey and benefits and more when you buy car insurance. This o makes your policy more airtight.

Additional Convenience

An extensive online four wheeler insurance policy also allows you to experience benefits like coverage of personal baggage theft/damage, paperless-digital insurance applications and processing, online claims, spot services and more.

Motor Package Insurance Policy For Two-Wheeler

Insurance Company offers Liability Only Two-Wheeler Insurance Policy and Two-Wheeler Package Policy for two-wheelers in India. While the Liability Only Policy covers the insured against loss or damage caused to a third party due to the insured vehicle, the package policy covers own damage as well.

Insurance Two-Wheeler Insurance Benefits:

Two-wheeler Insurance offers both liability-only plan and a comprehensive insurance plan. Both the plans have their benefits. Pick the one you want after knowing the advantages based on your insurance needs. It offers both liability-only plan and a comprehensive insurance plan. Both the plans have their benefits. Pick the one you want after knowing the advantages based on your insurance needs.

Two-Wheeler and Car Insurance Package Policy

Loss or damage caused to the vehicle

Personal accident cover for the driver/owner of the vehicle

Loss or damage caused to the vehicle due to burglary, theft, housebreaking, and more

Loss or damage to the vehicle due to fire, explosion, lightening, and self-ignition

Loss or damage caused to the vehicle due to a natural disaster such as landslide, rockslide, earthquake, etc

Man-made malicious acts, strikes, riots, terrorism

Loss or damage to the vehicle while in transit

Maximum Amount Insured

In case of total loss of the vehicle due to accident or theft, the maximum compensation payable by an insurance company is limited to the Insured Declared Value of the vehicle. The IDV is determined based on the manufacturer's listed selling price adjusted with depreciation. For a vehicle older than five years, the IDV is determined based on the mutual understanding between the insurer and the customer.

Factors Affecting Premium Calculation

The premium for a two-wheeler and car insurance policy is determined based on multiple factors. Some of which are listed below:

Insured Declared Value of the vehicle

Vehicle registration zone

Cubic capacity of the vehicle

Age of the vehicle

Add-on covers opted for

Electrical and electronic items installed to the vehicle

Exclusions Under The Policy

Damage or loss caused to the vehicle by a person driving the vehicle without a valid driving license.

Damage or loss caused to the vehicle by a person driving under the influence any intoxicating substance.

Mechanical or Electrical breakdown.

Consequential loss.

Depreciation in the value of the vehicle.

Loss or damage to the vehicle due to war/mutiny/nuclear risk.

Damage or loss of consumable items unless the vehicle is damaged at the same time. The liability of the insurer is limited to 50% in such cases.

Damage caused outside the geographic area outside India.

Claims made for an insured vehicle being used against the limitations specified in the policy.

Loss or damage to the vehicle accessories vehicle is stolen at the same time.