Car insurance is a must-have for all car owners in India. Not only is it mandatory by law, but it also provides financial security in case of theft or damage to your vehicle. However, with the plethora of options available in the market, it can be confusing to pick the right car insurance policy. In this article, we will explore the essentials of car insurance coverage and guide you to make an informed decision.
Types of Car Insurance
Before we dive into the specifics of coverage, let’s understand the types of car insurance policies. There are mainly two types of car insurance policies: third party car insurance and comprehensive car insurance.
Third-party car insurance, as the name suggests, covers the damages caused to third-party property or person due to your vehicle. It is a mandatory policy, and every car owner must have it in India. It does not cover damages to your own vehicle, and you will have to bear the expenses if your vehicle gets damaged.
Comprehensive car insurance, on the other hand, covers both third-party damages and damages caused to your vehicle. It provides complete financial security to car owners and is recommended for car owners who want to ensure complete protection for their vehicle.
Now that we know the types of car insurance policies, let’s take a look at the coverage essentials of car insurance.
Coverage Essentials of Car Insurance
1. Liability Coverage: As mentioned earlier, third-party car insurance is mandatory in India. Liability coverage is the primary coverage provided by third-party car insurance. It covers the damages caused to third-party property or person due to your vehicle. The coverage amount can vary based on your policy and can range between Rs. 7.5 lakhs to Rs. 15 lakhs.
2. Collision Coverage: Collision coverage is a part of comprehensive car insurance. It covers the damages caused to your vehicle due to collisions with any object, including other vehicles. The coverage amount can vary based on your policy and can range between the IDV (insured declared value) of your car.
3. Comprehensive Coverage: Comprehensive coverage is the most recommended coverage for car owners. It covers damages caused to your vehicle due to natural disasters like floods, storms, and landslides. Additionally, it also covers theft, fire, and other man-made damages. The coverage amount can vary based on your policy and can range between the IDV of your car.
4. Personal Accident Coverage: Personal accident coverage is provided as part of both third-party car insurance and comprehensive third party car insurance. It covers accidental death or disabilities caused to the owner or driver of the vehicle. The coverage amount can vary based on your policy and can range between Rs. 1 lakh to Rs. 15 lakhs.
5. Add-on Covers: Add-on covers are additional coverage options provided by car insurance policies. They can be availed with either third-party car insurance or comprehensive car insurance policies, and the policyholder will have to pay an additional premium for these covers. Some popular add-on covers are zero depreciation cover, engine protection cover, roadside assistance cover, and no claim bonus protection cover.
How to Choose the Right Car Insurance Policy?
Choosing the right car insurance policy can be overwhelming, but with the right information, you can make an informed decision. Here are some tips to help you choose the right car insurance policy:
1. Policy Coverage: Evaluate your insurance needs and choose a policy that provides comprehensive coverage. Third-party car insurance might be cheaper, but it does not provide complete protection to your vehicle. Comprehensive car insurance is recommended as it covers both third-party damages and damages caused to your vehicle.
2. Insurance Company: Choose a reputable insurance company that is known for its prompt customer service and hassle-free claim settlement process. Reliance General Insurance is a trusted name in the Indian insurance market when it comes to car insurance policies. You can visit their website (https://www.reliancegeneral.co.in/) to explore their car insurance policies and coverage details.
3. Premiums: Compare the premiums of different policies and choose a policy that provides maximum coverage at an affordable premium. Additionally, look for discounts and offers provided by the insurance company to save money on premiums.
4. Claim Settlement Ratio: The claim settlement ratio of an insurance company indicates the percentage of claims settled by the company. Choose an insurance company with a high claim settlement ratio to ensure hassle-free claim settlement in case of damages.
Conclusion
Car insurance is a crucial investment for all car owners in India. It not only provides financial security in case of damages or theft but also ensures compliance with the law. It is essential to evaluate the coverage essentials of car insurance and choose a policy that suits your insurance needs. Remember to choose a reputable insurance company and make an informed decision to safeguard your vehicle and your financials.
