Car insurance functions like any other insurance where you buy an insurance policy and pay premiums for the whole tenure. The insurer is responsible for the financial needs of your vehicle in the event of injuries or errors. Investing in a car requires a great deal of money and must be secured, like any other investment. But the uncertainties on the roads can’t be expected. Therefore the card owner ends up paying a significant expense when an error or mistake happens. Car insurance is therefore necessary in times of crisis to save yourself. Many insurance providers in the country already provide competitive rates on car insurance plans. The growing number of cars in the country resulted in high demand for car insurance policies.
CAR INSURANCE POLICIES AVAILABLE IN INDIA
Based on the various requirements and budgets, car insurance companies provide the following car insurance policies.
- Third-party car insurance: As the name suggests, third-party vehicle assurance protects third-party liabilities. This policy also covers the costs of accidents incurred by the insured car to a third-party vehicle or third-party property. For instance, under this scheme, the insured car is not shielded. Many that have a low budget and want to have the minimum cover should apply for the auto insurance policy of a third-party. Notice that there is no extra coverage included in the third party agreement.
- Comprehensive car insurance: The full coverage for policyholders is provided through comprehensive auto insurance plans. You may also use a detailed plan for financial aid for liabilities of third parties and for damage to the insured car. The scheme helps you to expand the coverage further with a wide variety of other coverage. You can pick any extra coverage you need. The costs are included in your rate for the extra protection. This strategy is better for those who want to protect their cars as much as possible.
- Usage-based car insurance: Usage-based scheme is the newest addition to India’s auto insurance plans or pays as you drive policy. This is a simple and cost-effective plan for non-regularly used cars. You pay the premium according to the kilometers the car has driven, rather than paying a fixed amount as a premium. You must declare the distance that you intend to travel during the policy duration when you buy the plan. Based on this distance, the insurer sets the premium. It comes for a 1-year term and is currently only offered by a variety of insurance firms.
WHAT GETS COVERED IN A CAR INSURANCE POLICY?
The following are covered under a standard car insurance policy.
- Damage caused to the insured car because of natural disasters.
- Damage incurred to the insured car due to man-made disasters.
- Damage incurred to any third party vehicle or any third party property due to an accident involving the insured car.
- Personal accident coverage to the driver or owner.
- Total loss due to theft or burglary.