A car insurance policy is an insurance policy that covers your car from various mishaps to your car. Car insurance is the best way you can protect your car from the financial emergencies, accidents to you, or the third party, any legal liability that results from traffic collision etc. You also get protection against theft, damages due to various reasons such as natural or man made. A car insurance policy is a must for you to buy in order to have the security and peace of driving the vehicle that you possess.
The premium amount of car insurance is decided on the basis of IDV which is the insured declared value. If you increase the insured declared value, your premium automatically increases while you reduce it, the premium gets lowered.
Benefits of Car Insurance plans
- Coverage against loss or damage of the insured vehicle.
- Coverage against loss or damage to your vehicle caused by theft, accident, collision, explosion, act of terrorism, and natural calamities etc.
- Coverage against the financial liability caused by injury or death of a third party.
- Coverage against personal accidents.
Need for comparison of the car insurance plans
There are a huge number of policies available in the market, so choosing the one that is best for you is a clearly very difficult and demanding task. A comparison of various car insurance policy can help you choose the best policy for yourself that will give you all the advantages that you require. There are numerous reasons as to why do you need to compare the car insurance plans.
List the coverage you need: Before you compare, you need to ascertain the kind of coverage you need. A liability policy is less expensive than a comprehensive one. But the liability policy gives you less coverage than the comprehensive plan.
Compare the coverage option: While a liability cover gives you the much needed third party liability, comprehensive policy covers you against the accidents, damages caused due to theft and various other reasons including the natural calamities. However, the cover provided differs from policy to policy. There are certain additional benefits that you get as riders with various plans. It is thus important to check various plans and compare them to find out if they give you both personal accident cover along with other riders in the same plan.
Compare the IDV: Insured declare value is the current value of car after being adjusted to the best possible reduction. The rate depends on the age of your car, the higher the age, the higher the rate of reduction and lower would be your IDV. Your IDV affects your sum insured. Thus, it is important to make sure that you compare the IDV before you settle for any plan.
Compare the claim process: each insurance company has a different claim process. Everybody demands a hassle free claim process of any insurance policy that he is thinking of investing into. Make sure that you compare various plans’ claim process and see which rules suit you and which allows you faster claim.
Coverage under the car insurance policy
Third party liability: It provides you the coverage that you need in case of legal liability to a third caused when you are the one at fault. It is mandatory in India under the motor vehicles Act.
Collision coverage: It covers the insured vehicle against any accident or collision. You get financial assistance in case of any damage due to accident. Also, you must know that this does not cover the damages caused due to theft or any vandalism.
Comprehensive coverage: This is the most popular plan as it provides an end to end coverage. It includes the coverage against theft, damages due to accidents, damages caused due to third person liability etc. you can also get the advantages of various add ones such as engine cover, zero depreciation cover etc.
Exclusions under the car insurance plans
- Loss or damage to engine as a result of oil leakage
- Gradual wear and tear of car and its parts
- Damages caused when policy is not in use
- Damages to the vehicles as a result of intoxication with drugs, alcohol etc.
- Damages caused by a person driving without the valid driving license.