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Questions (FAQs) on
What is Car Insurance ?
If you own a car or any vehicle for that matter, you can safeguard your financial risks against any accident or damages caused to your vehicle. A car insurance policy typically covers the damage risk of the car, the driver, the co-passengers travelling at the time of accident & any third party if met with an accident. The car insurance policy even safeguards you against any damage caused to your vehicle by natural calamities such as earthquake, flood, rains, etc.
Why should you buy a Car Insurance Policy ?
Though it is mandatory as per regulatory norms for every vehicle (2 wheeler or 4 wheeler, Private or Commercial) to be insured, but insurance is for your own benefits too. If your car meets with any accident or gets stolen, you get compensated for the damage amount by the car insurance company. Since cars are fairly high priced assets so it is always wise to get it insured to avoid any future liabilities.
What are the types of Car Insurance ?
Broadly speaking, there are 2 types of Car Insurance Policies. One, a Comprehensive Car Insurance Policy which covers the damages to your vehicle, accidental damages, damages due to natural calamities, the driver, the co-passengers and third party who meets with an accident with your vehicle. The second type of car insurance plan is Third Party Car Insurance, which only covers the damages caused to any third party with whom your vehicle meets with accident.
A comprehensive car insurance policy can be normally done to certain age of the vehicle typically till the maximum of 12-15 years whereas 3rd party car insurance is a legal mandate and the law requires you to get the third party vehicle insurance of your vehicle till the time you keep using your vehicle.
Which Companies offer best Car Insurance Plans ?
All general insurance companies offer multiple types of Car Insurance Policies but the most popular, low premium and high benefits car insurance plans are offered by the following :
Bajaj Allianz Car Insurance | Bharati Axa Car Insurance | Future Cari India Insurance | HDFC ERGO Car Insurance | ICICI Lombard Car Insurance | IFFCO Tokio Car Insurance | National Insurance | Reliance Car Insurance | Royal Sundaram Car Insurance | SBI Car Insurance | Tata AIG Car Insurance | The New India Assurance | The Oriental Insurance | United India Insurance
All these companies are General Insurance Companies. Car Insurance is also a type of General Insurance only.
How to pick the best Car Insurance Policy ?
A Car insurance policy has many components which need to need to analysed so that you are able to pick the best vehicle Insurance Policy for your car. Basis the price, make, model, age, depreciation etc the insurance company arrives at the IDV (Insured Declared Value) of your car. In case you don’t take any claims during a year, the insurance companies offer you No Claim Bonus also. The most popular and important factor to be ascertained in the cashless facility. Having a cashless car insurance policy entitles you to get your car repaired for the damages without having to pay for it across a network of empaneled service centres and workshops. Then there is a Zero Depreciation benefit too which doesn’t reduce the IDV of your vehicle meaning, old or new for the sake of insurance claim the value of your vehicle remains intact. Additionally if you wish you can also insure your accessories.
Since there are so many variables, finding the best car insurance policies at lowest premiums and with maximum coverage requires you to compare and find information first. To make this easier and more logical, you must contact an IRDA licensed Car Insurance Advisor near you.