Car Insurance

Car Insurance?

Car Insurance Policy is a contract between the motor insurance company & a car owner that provides on-road protection against any loss or damages arising due to an accident. A car insurance policy provides financial coverage to the beneficiary of the car policy against any loss or damages arising out of road accidents, third party liabilities, theft, man made calamities, fire , natural disaster & other unforeseen circumstances.

A new car insurance policy has a validity period and after its expiry, you need to renew it for keeping your car insured. You can renew your car policy either offline or online. Even though many of us still follow the traditional method of offline renewal of the policy, but opting for online car policy renewal is better. Here are a few benefits of renewing your car policy online.

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Buy/Renew Car Insurance Online

Buying a car insurance policy is mandatory in India for all cars as per the Motor Vehicle Act 1988. Vehicle insurance companies compensate for the loss or damage caused to the insured vehicle and a third-party from the insured four-wheeler. Here are some of the reasons to buy a new car insurance policy in India:

  • It pays for the car damages as a result of a collision, accident, death or natural calamities, which otherwise would need to be paid by the insured
  • It pays for hospitalization expenses in case of an accident
  • It reduces the financial and legal damages that can arise from a third-party liability or damage
  • With rider benefits like roadside assistance, zero depreciation the expenses are further reduced

Moreover, the premium amount of your car insurance is decided based on the 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 car insurance plans before going for 4-wheeler insurance renewal or buying a new policy. Compare various car insurance plans online on Policybazaar and buy the one that fulfils your expectations hassle-free:

  • Get the best car insurance policy from top Car insurers
  • Instant and easy online car insurance renewal process
  • Comprehensive coverage for four-wheeler vehicle
  • A wide range of Add-on covers for improved protection

Types of Car Insurance Policy in India

There are three types of car insurance policies that are available in India

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  • Comprehensive Car Insurance

    A comprehensive insurance policy provides coverage for third party liability as well as damages caused to your own car. In comparison with third party liability insurance, a comprehensive four wheeler insurance policy offers extensive coverage, more benefits and covers the damages caused to the insured car in case of an accident, collision, theft, etc.

    A comprehensive policy can be further extended by opting for add-ons 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.

  • Third Party Car Insurance

    Third party insurance safeguards you from any legal liability due to your own car’s involvement in an accident. Your insurance provider will compensate you for death, disability, injury, or property damage to any third-party. Therefore, you are protected from the financial liability towards the third-party.

    Third-party liability car insurance prices are a mandate in India under the Motor Vehicles Act, 1988.

    Engine Capacity Third-party Liability Car Insurance Price Effective June 16, 2019 (Rs.)
    Less than 1000 CC 2,072
    More than 1000 CC & less than 1500 CC 3,221
    More than 1500 CC 7,890
  • Pay as You Drive Insurance

    Also known as usage-based motor insurance, this insurance policy allows the insured to pay the insurance premiums as per the kilometres driven. This newly introduced product likely to be helpful for those with multiple cars not all of which are used so frequently. As per the IRDA guidelines under the Sandbox project, a few insurers such as Bharti AXA, Bajaj Allianz have started offering Pay As You Drive insurance policy. The policy offers comprehensive coverage for own damage and third-party liability on a pilot basis for a term of one year. The policy seeker will have to declare the distance he/she expects to travel during a policy year and based on that premiums for Pay As You Drive policy will be decided. However, the insurers have come up with 3 slabs for distance covered -Rs 2,500 km, 5,000 km and 7,500 km.

Points to Consider While Selecting Car Insurance Policy

What is covered

Checkout the inclusions and exclusions of both third party insurance and comprehensive vehicle insurance policy. Only buy third party insurance if you can bear your own damage expenses.

Compare Car Insurance Online

Compare car insurance online and select the one that meets most of your financial expectations. You can easily get multiple four wheeler insurance quotes online from the best car insurance companies in India.

Incurred Claim Ratio

Higher ICR, indicate satisfied customers and more the chances of your claim being settled.

Add-on Covers

It is always recommended to buy a comprehensive car policy with additional benefits like roadside assistance, zero depreciation, flat tyre assistance, etc.

What’s Covered in Car Insurance Policy?

The four wheeler insurance policy covers the following:

  • Loss or damage to the insured vehicle.
  • Loss or damage to your vehicle caused by accident, theft, fire, explosion, self-ignition, lightning, riots, strikes or act of terrorism, natural calamities.
  • Financial liability caused by the injury/death of a third party or damage to the property.
  • Personal accidental insurance cover.

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