• Why is it Important to compare Car Insurance?

    Looking to buy car insurance?
    There is a multitude of things you have to keep in mind while purchasing a four-wheeler, apart from the model specifications and horsepower. Keep in mind that the Motor Vehicles Act of 1988 mandates every car owner to avail insurance against the same, to ensure you have adequate financial coverage against any adverse situations.
    Any unforeseen road accidents can cause severe damage to your pricey possessions, not to mention financial liability due to third-party harm.
    Availing car insurance keeps you protected in all such circumstances, allowing you to relish in your latest purchase without any worries. Numerous insurance providers in the country provide such facilities through multiple products.

    What are the various types of car insurance policies available in India?

    Renowned insurance aggregators primarily offer two types of products in the country –
    ● Third-Party liability insurance.
    ● Comprehensive car insurance.
    S. No. Type Coverage
    1. Third-party liability Third-party damages
    2. Comprehensive policy Third-party damages as well as repairing insured vehicle

    Third-party car insurance

    In the event of accidents, severe damages might be caused to third-party individuals and/or their vehicles. Adequate finances have to be extended to the victims for treatment/repair of the same by the respective car owner.
    In most cases, people often face a shortage of funds to extend for meeting such liabilities, creating a difficult situation. Third party car insurance comes in handy in such circumstances, as it provides extensive coverage to satisfy all related expenses.
    Such insurance policies are mandated by the law, making it compulsory for every for every car owner and prospective buyer to avail it. Premium charges against the same are nominal, making it appealing for people of all classes to purchase a car and maintain the same quickly.

    Comprehensive car insurance

    Though not mandatory as per the rules of the Indian Government, such comprehensive car insurance policies come with numerous benefits which extend maximum possible coverage to car owners against any unforeseen situations.
    Along with coverage against third-party liabilities, financial protection against the insured vehicle is also extended against such comprehensive insurance products. With increasing expenses of automobile repair, having such insurance allows you to forego any excess strain to get quality repairs of your vehicle.
    Any damages caused to the four-wheeler owing to the following conditions are covered under comprehensive car insurance –
    1. Accidents or collisions.
    2. Theft of the insured vehicle.
    3. Fire.
    4. Natural disasters such as flood, cyclone, earthquake, etc.
    Additionally, in case accidents lead to injury of the car owner, financial assistance can be claimed to meet the medical expenses for its treatment. Such provisions allow individuals to avail quality treatments against any ailments resultant from such roadside accidents.

    Which car insurance should you buy?

    Choosing between third party liability insurance and comprehensive coverage depends on your requirements and financial planning. If you wish to allocate a nominal proportion of your income towards premium payments, you should opt for third party liability insurance, ensuring you meet all legal requirements necessary to drive your car on the road.
    You should choose comprehensive insurance if you wish to obtain coverage encompassing all subsequent requirements which might arise in unpredicted situations. Coverage against four-wheelers and personal accidents can be claimed as well, through such insurance.
    Another aspect influencing insurance cover purchase decisions is the reputation of an insurance aggregator. The claim settlement ratio should be compared in such cases, as well as market status and premium payments. Many such institutions provide the facility of making insurance premium payments on a quarterly or annual basis, reducing the hassles even further.
    Insurance aggregators often have tie-ups with specific network garages, facilitating the process of claiming comprehensive insurance further. Ensure the provider has tie-ups with multiple showrooms of the company manufacturing your four-wheeler to ensure hassle-free claim process.
    Always make sure that you compare car insurance before you buy one. You can easily compare the premium charges of various insurance policies available online. Additionally, compare the following pointers for smooth insurance activation and high sum assured –
    ● Check the no claims bonus granted by multiple companies, as it leads to high-value discounts on yearly premium charges.
    ● Check the insured declared value of your vehicle. This helps you determine the sum assured disbursed in case of accidents, or other damages (in case of the comprehensive policy).
    ● Check total deductible amount payable by you in case of such accidents, while the insurance company assumes the remaining liability. This point is essential as it affects the financials of individuals directly.
    ● You can opt for additional covers in the form of zero depreciation cover, engine cover, and roadside assistance from the respective insurance provider at a discounted value to increase monetary security.
    Thus, upon knowing the type of insurance policy you want to avail for your recent purchase, and the chosen company, you can diminish your mental strain while riding your car. Enjoy such benefits at low premium liability by comparing and selecting the right car insurance product.
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