The car has become an article of dress without which we feel uncertain, unclad, and incomplete in the urban compound.”
― Marshall McLuhan
The aforementioned quote rings true in the present context as life in metros is unimaginable without cars. Can we imagine our life sans cars? The answer is no. This is why it is important to safeguard and insure our cars, which brings us to car insurance.
Read on this article to read about 8 amazing facts on car insurance.
What is Car Insurance?
Car insurance is an agreement purchased by the owner of the car to mitigate costs incurred owing to an accident which damages the vehicle and to protect the car against theft. All car owners are expected to pay premiums towards a policy to the insurance company they buy the policy from. The damages to the car are reimbursed at the time of an accident
Car insurance can be easily purchased and renewed and you can buy it online as well from any of the reputed general insurance companies. Car insurance is generally a very sought after product and buying it online gives you the opportunity to avail discounts on the same. The premium amount to be paid in insurance is decided by the type of car, age of vehicle, age of the insured, Insured Declared Value etc.
Key benefits of Car Insurance
There are some key benefits of car insurance, which are:
a)Personal accident cover
b)Coverage against financial liability caused by injury/death of third party or damage to the property
c)Coverage against loss or damage to the vehicle caused by theft, accident, natural calamities, hazards like fire, explosion, lightning strike, riots or strikes
d)Coverage against loss/damage to the insured vehicle
Types of Coverages Under Car Insurance
Generally, there are two types of auto insurance:
- a) Comprehensive insurance: This kind of insurance gives you protection against liabilities arising from theft, natural calamities, accidents, etc. This insurance includes both a third-party premium and own-damage premium as well. Own damage premium is decided on the basis of make and model of the car, age of the car, geographical location and engine capacity as well. It also offers a [personal accident cover for the passengers, but that coverage is bought with the help of an additional premium.
A personal accident cover compensates the insured in the event of death, loss of a body part like an eye, limb, eyesight, permanent and total disability
- b) Third-party insurance: This is the most common type of insurance found in India and is mandatory for all Indian vehicles plying on the roads. This type of auto insurance covers damages to the third party in the event of an accident.
Understanding Car Insurance
Car insurance is quite a vast topic and to understand car insurance, you need to go through the following components:
- Significance of Car Insurance
There are several reasons to buy car insurance besides safeguarding your vehicle from any damages. They are as follows:
- Third party insurance is mandatory as per Section 146 of the Motor Vehicles Act, 1988.
- The rate of vehicular accidents is high in India, especially due to the rapidly increasing traffic problem, ongoing road constructions and due to monsoon and water logging problems.
- You cannot control or predict manmade disasters like floods, earthquakes and similar hazards. An auto insurance will help give you a financial backing at a crisis like this one.
- In a case of death/disability, when a tough financial crisis is looming large on the family owing to medical costs, vehicle repair costs, third party liabilities and so on. Here, a car insurance will help reduce some of that burden.
- Be it a car part replacement or repair, the expenditure is quite high. Some insurance companies, however, provide cashless garage facility and roadside assistance to make things easier for you.
- Terms covered by a Car Insurance Policy
- Generally, an average car insurance policy covers loss or damage incurred by own vehicle owing to natural or man-made calamities. Fire, hurricane, flood, storm, tempest, theft, burglary, self-ignition etc, and some examples of the same.
- Personal accident cover: Several insurers provide personal accident cover to help protect the vehicle from any unfortunate accident while driving. This cover can also be taken for co-passengers of the car.
- Third-party legal liability: This policy also provides where the vehicle has been involved in some kind of accident/injury/death/disability caused to a third party.
- Additional cover include provisions that can be added for additional accessories viz; electrical/non-electrical accessories, and some riders could be added viz; Zero depreciation, engine protect cover, return to invoice cover, loss of personal belongings cover, NCB protection cover, Roadside assistance cover, daily allowance cover, personal consumables cover etc.
- What are the documents required to be submitted for a car insurance claim?
The documents that you would generally require are:
a)A duly filled claim form
b)Registration Certificate (RC) copy of the vehicle
c)Original estimates of loss to the vehicle
d)Repair invoice and payment receipt
For theft claim, one would need to file an FIR with the local police and the copy of the same would be submitted to the concerned insurance company along with the keys to the vehicle and a non-traceable certificate
- Is it mandatory to inform the insurance company if I fit a CNG/LPG in my vehicle?
To fit a CNG/LPG in your vehicle, you need to inform both the Road Transport Authority (RTA) where the vehicle’s registration is done and your insurance company as well. The RTA will make a note of the Registration Certificate (RC) and the insurance company will inform you regarding the payment of the extra premium for the value of the kit to be covered under the ‘OD’ and ‘TP’ sections respectively.
- Should I buy a Comprehensive car insurance or a Third-party insurance?
Third party car insurance, also known as Liability Only or Act only cover, is mandatory by law for all vehicles plying on the roads. Third party insurance only covers damages caused to a third party individual or property, whereas Comprehensive covers both own damages as well as third party.
So, it is advisable to buy Comprehensive car insurance, as amount you have to invest in additional premium is far less than the amount you will have to incur on your car repair. It also gives you complete peace of mind that your car is safeguarded through comprehensive car insurance against various risks on and off the road.
It is important to buy car insurance, and while you’re doing it, why not go all tech-savvy and do it online? Just log on to Cover.com and find tons of lucrative deals at your disposal and you can buy the policy best suited to your car model and type. So, what are you waiting for? Go get that comprehensive car insurance policy now!