Car Insurance is the one which gives financial protection to your four-wheeler against any kind of physical damage or bodily injury. These protections are provided in case of damage caused due to traffic collision or damage done due to any kind of road accidents in which your car is damaged.
The best part about having car insurance is that it not also provides coverage for accidents but it also provides cover against theft and damages caused due to a natural disaster such as floods, earthquake, etc. and also for the man-made calamities such as a fire.
The terms and the coverage vary according to your policy and on the insurer to whom you opted for your policy.
The amount of the premium for your car insurance depends on the risk covered and mostly on the price of your car.
Car Insurance is Mandatory in India!
It is mandatory to have car insurance in India, whether it be for a personal car or for a commercial one. Most of the car insurance companies in India have tie-ups with the automobile companies and offer car insurance at the time you purchase it in the showroom itself.
As, the car insurance is mandatory to have in India, so it becomes even more important to choose it wisely so that you can avail more benefits on it. Nowadays for a car insurance plan, there are numerous options available, you just need to explore and get the best one for you. There are various online renowned insurance portals which makes your work even easier to choose and get the best policy for your car.
Documents Required to Claim a Car Insurance
- Completely filled the claim form
- Your registration copy for your car (RC)
- Your driving license
- FIR copy
- Policy documents.
Types of Car Insurance Policy in India
1. Third Party Coverage:
Third party cover is designed in a way under which the insurance company is liable to bear the damages which are caused by you to the third party.
However, the third party liability cover does not cover the cost of any losses or damages caused to the policyholder.
It is designed to cover the minimum risks which come under the Auto Vehicles Act 1938.
In India, having a third party insurance is mandatory for every car owner. For the third-party, the basic premium usually depends on the cubic capacity.
The Third-party Liability Insurance Comprises of :
- Third-party premium
- Goods and Service tax
- Premium for Personal Accident Owner Driver Cover
2. Comprehensive Coverage:
The comprehensive coverage is the best type of car insurance protection. This is structured in a manner that it can offer coverage to both the policyholder as well as the third party. Under this cover, you not only get the basic third party liability cover which is mandatory in India but you also get the complete coverage of the insured vehicle as well.
The comprehensive coverage provides cover against maximum expenses to the insured car and third party liability as well.
The same provides financial cover for your vehicle against misfortunes and harms related to the vehicle that happens as a result of-
- Natural disasters
- Fire etc.
It is the best protection plan for your plan which can protect it from all the possible ways. The comprehensive cover comes along with add on on benefits along with the third party cover, so it becomes very important to have it in terms to keep your car protected.
The Components of the Comprehensive Cover are:
- Own Damage premium
- Third-Party premium
- Goods & Services Tax
- The premium for Personal Accident Owner-Driver Cover
- Additional coverage (add-ons) depending on the policy
It is mandatory to have a third party cover in India but apart from that to have a comprehensive cover is also very important. It takes lots of money to buy a car, many people even save for years to have their dream car or some opt for a car loan and pays monthly EMIs for the same. Even a small accident can cause much damage to your car or if it is a case of theft or natural calamity all your money is gone only.
Having car insurance makes you worry free from such situations as your insurer is always there to bear all your loss.