If you own a car in India, having car insurance is a must. Not only is it legally required, but it can also protect you financially in case of an accident or other unforeseen events. In this article, we’ll take a look at car insurance in India, including the types of coverage available and how to find the best policy for your needs.
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What is Car Insurance?
Car insurance is a type of insurance that provides financial protection against damage or loss to your vehicle, as well as liability for any damage or injury you may cause to others while driving. In India, it is mandatory to have at least third-party liability insurance for your car.
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Types of Car Insurance Coverage
In India, there are two main types of car insurance coverage:
Third-Party Liability Insurance: This is the minimum coverage required by law in India. It covers you for any legal liability for injury or death of a third party, or damage to their property, caused by your vehicle.
Comprehensive Car Insurance: This type of insurance provides coverage for damage or loss to your own vehicle, as well as third-party liability. It may also include additional coverage for theft, fire, natural disasters, and personal accident.
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How to Choose the Best Car Insurance Policy
When it comes to choosing the best car insurance policy in India, there are several factors to consider. These include:
Coverage: Consider the coverage offered by the policy and make sure it meets your needs. If you have a new or expensive car, you may want to consider comprehensive coverage.
Premiums: Check the premium amount and make sure it fits within your budget. You can also look for discounts, such as no-claim bonus or safe driver discounts.
Exclusions: Check for any exclusions in the policy, such as coverage for damage caused by natural disasters or accidents while under the influence of alcohol.
Customer Service: Look for a company with good customer service that is responsive to your questions and concerns.
Reputation: Check the reputation of the insurance company, such as their claim settlement ratio and reviews from other customers.
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How to Buy Car Insurance in India
You can buy car insurance in India from a variety of sources, including insurance agents, insurance brokers, or online. Many insurance companies now offer online purchasing, which can be convenient and often comes with discounts.
When buying car insurance, it’s important to provide accurate information about your vehicle and driving history to get an accurate quote. You may also need to provide documents such as your car registration and driver’s license.
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Conclusion
Car insurance is a necessary expense for car owners in India. By understanding the types of coverage available and how to choose the best policy, you can protect yourself financially in case of an accident or other unforeseen events. Consider factors such as coverage, premiums, exclusions, customer service, and reputation when choosing an insurance policy. With the right car insurance, you can drive with peace of mind.
FAQ's
What is a car insurance policy?
Car Insurance/Four Wheeler Insurance is an agreement between an insurance company and a car owner under which the former provides an insurance cover to the policyholder for financial damages incurred by his/her car in unforeseen events. Depending on the coverage, there are three types of car insurance plans - third party car insurance policy, standalone own-damage car insurance and comprehensive car insurance policy. Car insurance renewal online process provides instant e-Policy.
Why should I buy car insurance?
There are a number of benefits of owning four wheeler insurance. Firstly, it helps you meet the legal requirement of owning at least a third party car insurance cover. Moreover, a car insurance policy helps you meet financial liabilities that may arise towards a third party or own-damages to your car due to a road accident or any other unfortunate event.
How much fine do I have to pay for not holding car insurance while driving?
It is mandatory to own at least a third party car insurance policy while driving a car. If you get caught driving without it for the first time, you may be charged with a fine of Rs. 2,000 with or without imprisonment of a maximum of 3 months that can increase to a fine of Rs. 4,000 and/or jail of up to 3 months, when caught for the second time.
How much is car insurance premium?
The premium rates for third-party car insurance price depend on the engine capacity of the car and is fixed by the IRDAI. However, the premium for standalone own-damage and comprehensive car insurance policies varies from car to car depending on a number of factors such as car's MMV (Make, Model and Variant), RTO location, engine capacity, registration city, fuel type,
What if my car insurance policy gets expired?
Every car insurance comes with a validity period, post which you need to renew it to continue to enjoy its benefits. However, even if you miss to get your car insurance plan renewed by the expiry date, you can still get it renewed till the next 90 days from the date of expiry. After the expiry of this 90-day period, car insurance cannot be renewed. In such a case, you need to purchase a new car insurance policy.
How to find my car insurance policy number?
Car insurance policy number is a unique 8 to 10 digit number, given by your car insurance company for the identification of your insurance account. It is generally written on your insurance card or statements issued by the insurance company. The number remains the same as long as your policy is active with the respective insurance provider.
Which is the best car insurance company in India 2023?
There are a number of factors which make a car insurance company better than its peers. One such important factor is Claim Settlement Ratio (CSR). It is the percentage of claims settled by a car insurance company out of the total number of claims received by it during a financial year. Based on this SBI Car Insurance tops the list with a claim settlement ratio of 100%, followed by Royal Sundaram Car Insurance (98.60%) and Bajaj Allianz Car Insurance (98.50%).
Can car insurance be transferred to the new owner at the purchase of a second hand four wheeler?
Yes, the four wheeler insurance can be transferred from the old owner to the new owner in case the sale of a second-hand car. As per the Indian Motor Tariff, the policy transfer should be completed within 14 days from the car’s purchase date.
Can one car owner buy two policies for the same car?
No, one car owner can not have two insurance policies for the same four-wheeler. However, a third-party insurance plan and own damage cover can be purchased separately for a four-wheeler, in place of a comprehensive four wheeler insurance.
What is depreciation in car insurance?
Depreciation in car insurance refers to the loss of the insured car’s value with time due to wear and tear. The depreciation rate plays a vital part in a car insurance policy as insurance companies consider, based on the car’s age, to determine the value they agree to provide for your car.
I have bought a used car. Can the insurance of its last owner continue while the car ownership has been transferred to my name?
The Indian Motor Tariff gives a period of 14 days from the date of the car’s sale to get the car insurance plan transferred from the previous car owner’s name to your name. If you fail to get your car insurance plan transferred within 14 days, your car will have no valid insurance protection.
What are the factors that insurance companies consider to accept car insurance applications?
While applying for a car insurance policy, the insurance company can ask you to disclose various relevant information requested on the car insurance application. Many insurers consider your credit history, age, criminal record, and other aspects for accepting or rejecting your application.
What is a cover note in car insurance?
When it comes to car insurance, a cover note is a temporary certificate of insurance issued by the insurance company before the issuance of a policy after the insured person has submitted a duly filled in proposal form and has made the complete payment of premium.
