Every person dreams of owning a beautiful car in which they can take their family and friends. They buy the car and treat it with utmost care so that not even a scratch spoils it. However, no matter what care you take, there may be unforeseen situations, such as accidents, theft, acts of terrorism and natural calamities that come uninvited.
You may then have to pay for getting your car back in shape or buy a new car. You may also have to pay for your medical expenses or of another person. So when you buy a car, you must also think about how you can protect yourself and your car in case of such unforeseen situations. An insurance cover for your car is what you need to save yourself from such risks and the subsequent financial liabilities.
Vehicle or Motor Insurance in India is now compulsory for all new vehicles. Hence insuring your car is now a must by law. As a result, private car insurance is a fast-growing sector in the insurance industry. All these aspects and more that come under Car Insurance in India and its various features will be covered here.
How to Choose a Car Insurance Policy
With so many car insurance companies in the market, you must make sure that you select a reliable and good insurance company, and also choose the right policy for your car. There are mainly two types of policies, which are:
- Package Policy
This type of policy provides cover for the Insured vehicle, its owner, and third party coverage
- Liability Only Policy
This type of policy provides cover for a third party, damage to third party’s vehicle and life of the driver. Also, you must compare and select an online car insurance quote based on the following factors:
- Good name and reputation of the company
- Premiums and add-on Coverage options, riders, benefits, etc.
- Payment options like EMIs, lump sum etc.
- Company’s and garage tie-ups for settlement of claims
Insurance Amount and Renewal
Car insurance in India typically provides cover for you, the insured party. It also provides insurance cover for other passengers, the car itself and its parts. In addition, third-party legal liabilities, including people and car are also covered under this kind of insurance. These days there are certain general insurance companies who also offer online insurance services for your vehicle.
The insured amount is always the market value of the automobile at that particular point of time. It is not the booking price or the original price of the vehicle when it was purchased. The amount of premium depends on the following factors:
- Make, model and value of the car
- Which state the car is registered
- The year of manufacture of the vehicle
- The capacity of the vehicle
- Previous Claim History
The renewal of the policy must be done before its expiry; else the insurance policy becomes invalid and will attract a penalty. As you already know, you can’t drive an uninsured vehicle. Also, if the policy gets expired, one must take the vehicle to the office of the insurance company again for renewal, which is an added burden.
Car Insurance Companies
You can get the car insurance from the government-owned General Insurance Company (GIC) or the four subsidiary companies of GIC:
- National Insurance Company
- Oriental Insurance Company
- New India Assurance Company
- United India Insurance Company
When Can You Claim Insurance?
Listed here are some possible situations when you can claim car insurance for loss or damage:
- External Explosion
- Riots or Terrorism
- Fire or Flood
- During Transit
When You Can’t Claim Insurance?
Listed here are some possible situations when you can’t claim car insurance:
- Drunken driving caused an accident
- Depreciation in value of the vehicle
- Mechanical and electrical breakdown
- When the vehicle is used outside the geographical area
- The driver is different from the one stated in the driver’s clause
- Warlike situations, nuclear disasters
Compare Car Insurance Online and Choose Wisely.