Everything You Need to Know About Car Insurance in India

What is Car Insurance in India
What is Car Insurance in India

If you buy a car then it is important for you to get your car insured. The Government of India has also asked all the car owners to get a necessary insurance for their car. Car insurance protects us financially in case of unforeseen events that happen to our car.

But many people want to know which car insurance can be better for them and what are the things covered in car insurance?

So, in today’s article, we will discuss some of the key points of car insurance and know what is car insurance in India? Which will cover things like basics of car insurance, types of car insurance in India, etc. So, let’s start the article.

What is the Car Insurance in India?

Car insurance is a contract, which is between you and the company. This contract protects you financially in the event of an accident happening to your car. You can get cover for your car in lieu of paying some premium for car insurance, which will cover damages caused to the car, in case of theft, car accident, etc.

Car Insurance

How Does Car Insurance Work in India?

Car insurance has been made mandatory in India, be it a commercial vehicle or a personal vehicle. Most insurance companies in India have also tied up with car manufacturers, under which you can get car insurance directly from the car company itself.

Although only third-party liability car insurance has been made mandatory in India, which only offers third party liability insurance.

Why is car insurance important?

After knowing about car insurance, let us know why it is important. So first of all let us tell you that in India it has been made necessary by the law that’s why it is necessary for you to take car insurance.

Another reason is that it provides financial assistance in case of an accident or theft, so that you can get your car repaired or replaced without losing any money from your pocket.

Without insurance, you will have to pay for any damages or injuries from your pocket, which can prove to be quite a demand for you. Lastly, car insurance is also important because it gives you the assurance that your car is safe on the road.

Why is car insurance important

What Does Car Insurance Cover?

Car insurance policy covers various types of loss or damage such as –

  • Accidents due to natural calamities like flood or earthquake
  • Accidents caused by man-made disasters such as riots or terrorist activities
  • In case of vehicle theft
  • For any third-party damage or loss caused by your vehicle
  • Personal accident cover for driver or passengers

What Is Not Covered In A Car Insurance Policy?

There are some such things in the car insurance policy, under which you will not be provided with any cover if your car meets with an accident, which includes –

  • If the driver is under the influence of alcohol and driving
  • driving without driving license
  • Driving without an active car insurance plan
  • Damage caused during war situation in the country
  • car servicing related expenses

Types of Car Insurance in India

There are mainly two types of car insurance in India, which are as follows –

Types of Car Insurance in India

1. Third-Party Car Insurance Policy:

Third party car insurance covers damages caused to a third party by your vehicle. This includes damage to property, death of a person, bodily injury, etc.

Third party insurance has been made mandatory in India as per the Motor Vehicles Act 1988. All car drivers or car owners should have this insurance. If you do not have third party insurance, then the police officer can also impose a penalty on you while driving on the road.

Third party liability insurance does not cover any damage caused to your vehicle or injury caused to you.

2. Comprehensive Car Insurance Policy:

A comprehensive car insurance policy is a policy that includes a third-party insurance policy as well. It is an insurance that not only covers the damages caused to the third party but also damages caused to your vehicle. 

It includes a wide range of coverage such as accident, theft, fire, natural calamity, etc. This also offers optional add-ons like zero depreciation cover, roadside assistance and engine protection, so that you can get even more coverage in your insurance.

In this insurance, you are also provided with cover for personal accident. Under which if your car has an accident and you also suffer any damage, then you will also be provided some cover for this.

Also read: What is Home Insurance? Know about Home Insurance

Factors That Affect Car Insurance Premium

There are many factors that affect the premium of car insurance, we have listed them below –

  1. The first factor is car insurance cover, so if you want to add some more cover to your car insurance, then your car insurance premium may increase, so make sure that without any need, do not add any addon to your car insurance.
  2. Another reason for this is the type of car. The premium for car insurance is directly proportional to the cost of the vehicle. Expensive cars always have a higher premium.
  3. Car driving history is also seen so if the driver of the car is the one who commits more accidents and traffic violations then his car insurance premium is always higher.
  4. If you live in a location that is near urban areas or along highways, your car insurance premium will always be higher for such locations.
  5. Mostly only those cars have low car insurance premium, whose car has security features like anti-theft device. Because these facilities often protect the vehicle from accidents.

How To Choose best Car Insurance Policy In India?

How To Choose best Car Insurance Policy In India

Choosing the right car insurance policy for an individual can be a bit difficult, so here we are sharing with you some factors that you should keep in mind.

  • The first thing you should do while buying car insurance is to compare the car insurance policies offered by different companies. Whichever company is providing more coverage at affordable premium to the customers, you can choose those policies.
  • Another factor to keep in mind while buying insurance is that you have to look at the claim settlement ratio of the company, that is, how many insurance claims have been settled by the company so far. If the claim settlement ratio of the company is high then you can buy insurance from this company.
  • Before buying the policy, read the fine print of whatever policy you are about to buy and buy insurance only after understanding the terms and conditions of the policy.

Conclusion

In today’s article, we got information related to car insurance. Hopefully, through this, you have now got all the information about car insurance, it’s types and factors to keep in mind while buying. If you want to get any information related to car insurance or any other type of insurance, then you must tell us by commenting.

FAQ’s

Q. How much does car insurance cost in India?

Ans. Different types of companies offer different types of car insurance and hence the cost of car insurance depends on the policy you choose.

Q. Which car insurance is best in India?

Ans. Comprehensive car insurance is considered to be the best in India. So, if you are looking for the best car insurance then go for comprehensive car insurance. Apart from this, you can buy a great car insurance through Reliance General Insurance Company, SBI General Insurance Company, HDFC Ego Insurance Company.

Q. How many types of car insurance are there in India?

Ans. There are two types of car insurance are there in india. Third-Party Insurance and Comprehensive Care insurance.

Q. Who has cheapest car insurance in India?

Ans. Cheapest Car Insurance in India is provided by HDFC Ego Car Insurance, ICICI Lombard Car Insurance, Bharti AXA Car Insurance, Reliance Car Insurance companies

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