Car Insurance

What is car ?

Car Insurance or motor insurance covers for loss on car damaged or stolen. The premium amount of car insurance is decided on the basis of  IDV(Insured Declared Value) of the car. If we increase the IDV, the premium increases and if we lower it, the premium decreases. It is important for any car insurance policyholder to compare various options before buying a new or going for a car insurance renewal.

Major Benefits of Car Insurance :

Car insurance offers following benefits:

      • Compensation against loss or harm to the insured vehicle.
      • Compensation against loss or harm to your vehicle caused by natural calamities,self ignition, lightning, riots, strikes, theft, fire, explosion,accident or act of terrorism.
      • Compensation against financial liability caused by injury/death of a third party or property damage.
      • Personal accident cover.

Why car insurance policies comparison is necessary?

Car insurance policies comparison is necessary to compare the policies of car insurance as it can save a good amount of money and give you better coverage options.

How to buy car insurance online in India?

Most car insurance providers like ICICI Lombard, HDFC ergo etc are now letting people purchase car insurance policies directly from them online or over the phone. Within few minutes, a person can have quotations on several car insurance policies and can easily purchase the car insurance policy online which suits his/her needs.

How to choose the best company or best car insurance policy in India?

For choosing the best car insurance policy we need to make some points clear in mind :

I) Types of vehicle/car insurance

Generally plans offered by general online car insurance providers can be widely classified in two categories:-

a)      Third party liability insurance – This plan covers property damage , death due to accident and third party injury . This plan is mandatory requirement for all vehicles or car moving on roads in India.

b)      Comprehensive Plan – This usually is a good option for many as it covers both ‘own damage’ and legal liability of third party. It also covers theft or damage caused by natural calamities such as  fire explosion. earthquake, cyclone etc.

2)      Value of the car

In order buy a lower premium car insurance policy, people often  reduce the car’s IDV(insured declared value). But in case of car accident it will be treated as final value of car. Avoid such practice benefit for the cost is not there in such cases. Always choose a policy that offers you the maximum IDV on your vehicle, even if it premium is high this way.

Documentation/Eligibility Required to buy Car Insurance in India

Buying a car insurance online requires minimum paper work.To buy a new car insurance policy, you must submit the filled up proposal form with copy of the Registration Certificate (RC). For renewals, you will need RC (Registration Certificate) copy along with previous insurance policy copy.

Fill in your complete details carefully. This step is very important and will save you a lot of hassle during time of car insurance claim.