It is crucial to take policy to cover yourself from financial losses due to unprecedented events when owning a four-wheeler. Unfortunately, many four-wheeler buyers don’t know what car insurance is and how it may benefit them.
You must choose only the necessary and crucial insurance policy best for you. But how do you choose the right policy?
What are car insurances? What are the different types of car insurance? For information related to such simple questions, you may follow this article.
In this article, I have listed everything a four-wheeler owner needs to know about car insurance. So, without any delay, let me start–
What Are Car Insurances?
Car insurances are a contract between an insurance company and an owner of a four-wheeler. The contract ensures the coverage of the car owner for some financial loss they suffer involving their car. Such occurrences may be unfortunate accidents or similar.
The insurance company offers financial aid to the owner in three different types according to the scope of coverage. Policyholders must renew their insurance to keep the services available.
Types Of Car Insurances
Here I have discussed three different insurance policies-
Comprehensive Car Insurance
The comprehensive insurance policy of a four-wheeler is the most extensive one. In this policy, the insurance company remains liable to offer financial aid for any financial liability incurred to a four-wheeler under such policy.
The damage can be a third-party one, or it can be damage of its own that the car has sustained. You can use this policy in case of natural calamities, self-ignition, man-made disasters, fire, explosion, or theft.
Third-Party Car Insurance
If you are driving a four-wheeler in India, third-party car insurance is the most important policy to have. The policy is also called Liability Only Insurance Policy.
Cars under such a policy can claim coverage from insurance companies for bodily injury on the vehicle, temporary disability, permanent disability, or death of a third party caused by an accident. This policy also helps with property damage incurred by any third party. The coverage ranges up to 7.5 lakh.
Standalone Damage Car Insurance
The own-damage car insurance was introduced back in 2019 by the Govt Of India. The aim was to cover the owners of cars for standalone car damages.
Cars under this insurance policy get insurance coverages for damages sustained by the four-wheeler on a road accident, man-made calamity, fire, theft, and explosion. It can also be any other mishap. This type of insurance offers the vehicle owner the flexibility in terms of choosing the insurance provider.
How To Choose Four Wheeler Insurance Policy?
When you own a four-wheeler, you need to choose an insurance policy, but which policy to choose is confusing for many. Here is a guide to choosing the right car insurance policy.
Select the proper type of insurance plan: first, you need to select the right type of insurance policy. You can choose a third-party cover or comprehensive cover depending on the utmost requirement of your car.
Compare different policies: before choosing any insurance policy, you should compare each of them online. This is a good process to short out which coverages you need for your car. Also, it helps you to stick to your car insurance budget.
Check for IDV: IDV means the amount an insurance company can pay according to the current value of your four-wheeler in the market. IDV helps you calculate the amount of insurance coverage you can avail of for your four-wheeler for any accident or damage. A higher IDV is always better since it offers owners more coverage. We suggest you check the IDV before choosing any insurance policy.
Ad-on covers: the meaning of this service is simple. You have to make an additional payment for extended coverage of your car. You can inquire about the best add-ons and the ones that suit your four-wheeler before availing of the insurance.
How Simple is the claim process: many insurance companies have a good insurance policy. But the claiming process is often very intricate. You can check the Claim Settlement Ratio before finalizing your insurance policy. CSR refers to the percentage an insurer claims in a year. Experts always suggest buying a plan from an insurance company offering higher CSR.
Frequently Asked Questions (FAQs)
The section above should help you understand all the information you need on car insurance. However, if any doubt remains, the following set of questions and answers may help.
There are three types of policies. Comprehensive car insurance policy, third-party insurance, and standalone insurance. If you are looking for the best one among them, then the comprehensive policy offers a wide range of coverages for your car.
There are three types of car insurance policies-
i. Comprehensive car insurance policy.
ii. Third-party insurance policy.
iii. Standalone or own damage insurance policy.
If you’re an Indian car owner, then the third-party car insurance policy is a must-have policy. It helps keep you financially safe from any accident or damage to your car.
To check your insurance policy, you need to open the RTO website. The RTO website has your policy registered. Then you need to input your car registration number in the required section and click on Proceed. Following the steps mentioned will show you your car insurance policy.
There are three most important types of insurance. Here are the three types of insurance–
i. Property Insurance
ii. Liability Insurance
iii. Life Insurance
Having an insurance policy is an integral part of owning a four-wheeler. Indeed you cannot compensate for a personal loss due to a car accident. But if you have insurance and you get out of a car accident in one piece, you will need that insurance. This article has a very simple guide to choosing the best car insurance.
I hope that his article helps you choose your car insurance. If you have any further questions, you can comment below for more information.