What is Car Insurance?

Car insurance is a contract between the owner of a car and an insurance company. The latter promises to cover the owner against financial losses that may result from an unfortunate accident involving their car. Depending on the coverage you choose, there are three types of car insurance policies: Comprehensive Car Insurance (Comprehensive Car Insurance), Standalone Own Damage (OD) Car Insurance and Third-Party Car Insurance. The policyholders must renew their car insurance policies on time to continue enjoying the benefits.

Comprehensive Car Insurance

Comprehensive Car Insurance policies are the most comprehensive car insurance coverage. They cover financial liabilities towards third parties as well as the car’s own damage. The policy covers road accidents as well as natural calamities and man-made disasters. It also covers self-ignition, lightning, explosions, fire, theft, and other events.

Third-Party Car Insurance

A Third-Party insurance policy is mandatory for Indian drivers. This is the most basic type of car insurance policy and is also known as Liability Only Car Insurance Policy. This coverage covers bodily injury, permanent disability, and death to third parties caused by accidents involving insured car. The plan provides protection for third-party property damage up to Rs. 7.5 Lakh.

Own Damage Car Insurance

The standalone Own-Damage policy was introduced by the Insurance Regulatory and Development Authority of India in September 2019. The plan provides insurance coverage for only the own-damages caused by the insured’s four-wheeler in an accident on the road, natural/manmade calamity or fire, explosion, theft, or another mishap. The standalone insurance policy for own-damage cars aims to give the insured flexibility when it comes to choosing the insurance provider.

How do I choose a Four Wheeler Insurance Policy Online?

1. Choose the Type of Policy – Evaluate your needs for car insurance and decide the type of policy that you require. Based on your needs, choose comprehensive or third-party coverage.

2. Compare Policies – It is a good idea to compare online different car insurance policies. This comparison will make it easier for you to choose the right car insurance plan that suits your needs and budget.

3. You should check for IDV and premium. The IDV is the current market value of your vehicle and the maximum amount an insurer will pay you in case there is total loss or damage beyond repair. You can get extended coverage with a higher IDV, but the premium will go up. Check the IDV amount and choose the one you can afford.

4. Ask for Add-on Insurance Covers. These add-ons will increase your policy’s coverage. It is possible to purchase it by paying an extra premium. Ask about the add-ons available and select the one that best suits your needs. These coverages are only available to those who have comprehensive insurance.

5. Pay attention to the Claim Process. Look for an insurance company with a fast and easy claim process. Before finalizing, check the Claim Settlement Ratio (CSR). This will confirm the quality and speed of an insurer’s claim process. This is the percentage of claims that the insurer has settled in a given year. A company with high CSR is better than a plan you buy.

Updated: December 24, 2022 — 10:56 am

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