Car insurance or four-wheeler insurance is a type of motor insurance policy where the vehicle owner is covered against losses caused due to theft, accident or any other damage (per terms and conditions). As per the Motor Vehicles Act 1988, section 145-164, buying third-party motor insurance for all vehicles moving on the road is compulsory. According to the guidelines of IRDA, a cover of up to Rs.7.5 Lakh is allowed if death occurs due to any adversity.
In today’s times, the cost of everything is skyrocketing. It is not easy for anyone to invest a significant amount in a new article immediately. That’s why insurance plays an important part in your life. A few benefits that can be advantageous for every vehicle owner are :
Decreased financial burden: APay now and save later is the key benefit. For any futuristic expenses, you are safe. For example, motor insurance helps you in covering costs against theft, accident, or damage from any natural occurrence. Also, you can get reimbursement for repair charges. You can use cashless services at a large number of garages throughout the country which are linked in a network with the insurance company.
Loss of vehicle: In case of loss of vehicle you have to submit a copy of the FIR and a ‘No Trace Certificate’ from the police department. Although you will not get the price of the new car but the IDV for the car if you buy a car insurance policy.
No Claim Bonus: If do not claim for any coverage during the policy's tenure, the next time you renew it, you automatically get a discount due to NCB and the policy becomes cheaper and affordable.
Third-party liabilities: Coverage for third-party liability is included in your four wheeler insurance policy in the event that your car damages another's property or injures a third party. You are protected against any legalities by your car insurance provider if you are responsible for the injuries or deaths of others.
There are two types of four-wheeler Insurance. According to your needs, you can buy the policy that fulfils all your requirements.
Third-Party Insurance: This is basic insurance coverage that is required by all four-wheeler owners. There are various benefits of such a policy:
Comprehensive Insurance: For a layman, it is a type of motor insurance policy that covers you for a repair or replacement. It covers the vehicle owner from theft, damage caused due to falling of objects, fire and natural calamities. The key features are:
There are some exclusions also which are not included in comprehensive policies:
If you feel that the motor insurance is not covering all of your needs then you can opt for add-on benefits provided by insurance companies. It can enhance your insurance policy with increased strength while giving you more benefits.
Type of Motor Insurance Policy: If you are opting for a comprehensive policy, then the premium will be higher as the benefits are more. With standard third-party insurance, the premium will be on the lower side as it provides basic coverage.
All the major cities like Mumbai, Delhi, Chennai, Kolkata, Pune, Ahmedabad, and Hyderabad fall under Zone while the rest of India falls under Zone B. The premiums of vehicles registered in Zone A are higher as compared to Zone B.
After looking at the factors, one can try and reduce his or her premium by just keeping a few points in their mind while the car goes on the road:
All in all, you should and you have to buy the policy. Your life is precious and so are the things that you are so attached to. Take good care of yourself and your car. Buy the policy as soon as you buy the car. It is for your better future and saves you from incurring unnecessary expenses. Buy motor insurance online from the comfort of your home with the least problems. See you soon on Okbima.com for your most affordable and transparent policy.
Car insurance for third parties is mandatory - All vehicles in India must be insured, according to the Motor Vehicles Act of India. You must obtain third-party liability coverage as a car owner.
It protects you from paying a traffic fine - Driving without car insurance is punishable with a charge of Rs.2,000 under the new Motor Vehicle Act, 2019. If you are caught for the second time, you will be fined Rs 4,000.
Provides coverage for the owner-driver at the time of a personal accident- The automobile insurance policy covers injuries to the registered owner-driver while traveling in the car or even while entering or exiting the car for a total of Rs. 15 lakh.
Covers vehicle damage-The car insurance policy covers the charges of any damage to your vehicle caused by accidents or natural disasters.
It compensates the loss of a stolen car- If your automobile is stolen and not recovered, the policy will compensate for your loss.
Car insurance policy are of the following types:
Third party cover: In the event of an accident, the policy guarantees to compensate exclusively for the damages caused to a third party.
Comprehensive coverage: The policy provides comprehensive coverage against damages. It covers damage to you and your vehicle, as well as damage to a third party and their vehicle, if any.
Accident coverage: In the event of a collision, the policy solely covers financial losses to your car.
The Car Insurance Policy includes the following: -
Accident insurance protects you from unanticipated financial losses if your car is involved in an accident.
Coverage for damage to a third party caused by an injury or a loss of property.
Theft, self-ignition, explosion, fire, strikes, rioting, terrorism, and natural disasters are all covered.
Coverage for personal injuries
Optional extra benefits that you obtain by having riders Ability to maintain the value of your car
The car insurance premium cannot be paid in instalments. Section 64VB says that car insurance coverage cannot be provided unless the company obtains full payment of the amount on or before the policy start date.
Here are some suggestions for lowering vehicle insurance rates.
Purchase only the coverage you require: Consider purchasing the coverages that will be beneficial to you. When it comes to vehicle insurance, don't buy everything.
Correctly set Insured Declared Value: Make the IDV roughly equivalent to the car's current market value. The premium will rise as the IDV rises.
Get No Claim Bonus (NCB): You may be eligible for a discount if you install an anti-theft device.
Renew on time:: If you don't renew your insurance coverage on time, your premium will go up.
When calculating car insurance premiums, many criteria are taken into account. The following is a list of those elements:
Engine cubic capacity: The price of an insurance coverage is determined by the cubic capacity of your vehicle's engine.
Make and Model: When it comes to calculating car insurance premiums, the make and model of the vehicle is crucial.
Car insurance policy type: A complete insurance coverage costs more than a third-party insurance policy.
IDV: The Insured Declared Value (IDV) is the foundation for car insurance premiums.
NCB:The amount of No Claim Bonus (if applicable) is used to calculate the vehicle insurance discount.
Yes, you can terminate your car insurance policy if you haven't filed a claim in the existing policy year. Your policy return will be computed on a pro-rata basis. However, make sure to have your car insurance coverage active at all times.