Whether you own a new or an old car, buying a car insurance policy is essential, no matter what. A car insurance policy, an agreement between the policyholder and the insurance company, states to financially aid the latter if the insured vehicle is lost, stolen, or damaged. It also provides financial protection if a third party gets damaged or injured due to the insured vehicle. Moreover, car insurance is of different types, which you need to be aware of before buying it. So, in the section below, let’s take you through the different car insurance policy available in India.
Types of Car Insurance Policy in India
There are broadly three types of car insurance policies such as those listed below:
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Saturday 05 Oct. 2024
- Third-party Car Insurance: As the name suggests, a third-party car insurance policy only provides coverage if a third party gets damaged. This policy includes expenses related to repairs of third-party vehicles, treatment of a third party, etc. Please note that a third-party is mandatory for all car owners to drive on Indian roads.
- Standalone Own-damage Car Insurance: This policy, on the other hand, provides coverage only if the insured vehicle is damaged, stolen, or lost. It does not compensate for third-party liabilities.
- Comprehensive Car Insurance: A Comprehensive policy ensures complete coverage, aiding you financially for both third-party liabilities and damages to the insured vehicle. This is the most recommended policy to get extensive coverage. You can also include add-ons to this policy to further enhance its coverage.
You can easily buy these policies from any of the top insurance companies in India, including ACKO. Don’t forget to check the inclusions, exclusions, premium amount, etc, before buying the policy to have a complete understanding of the terms and conditions.
A List of Add-ons Available with Car Insurance
There are many add-ons that you can include in your car insurance policy, but at higher premiums. Some of these add-ons have been detailed in the section below:
- No Claim Bonus Protector: No Claim Bonus or NCB Protector is an add-on that helps you retain your NCB even after raising several claims in a given year. For the unversed, NCB is a bonus or reward that is paid to the policyholders for not raising any claim in a given year.
- Zero Depreciation Cover: When you raise a car insurance claim for replacing any part of the vehicle, then the insurance company will financially compensate, excluding the depreciation costs. However, when you have this add-on, you will get complete reimbursement irrespective of the depreciation that you might have incurred over the years.
- Key Loss Cover: A car insurance policy typically does not provide coverage if the car keys get damaged or lost. But, with this cover, you will get financial protection even when the car keys are lost or damaged.
- Roadside Assistance Cover: Imagine what happens if your car breaks down in the middle of the road? You don’t need to worry about a situation like this if you have Roadside Assistance Cover. The Roadside Assistance Cover helps you in case of mechanical failure of the vehicle, flat tyre, battery issue, etc.
- Consumables Cover: To replace consumables like nuts, bolts, oil, etc, you will have to spend money from your own pocket even when you have a Comprehensive Car Insurance policy. But, with Consumables cover, you will also get financial coverage for replacing consumables, thus reducing your out-of-pocket expenses.
- Daily Allowance Cover: With this add-on, you will get financial coverage for daily commutes until your insured vehicle gets repaired.
- Loss of Personal Belongings: When you include this add-on in your Comprehensive car insurance policy, you will get financial coverage to compensate for losing personal belongings like clothes, CDs, etc in the insured car.
Summing Up
So, no matter which car insurance policy you buy, always renew it on time to prevent it from lapsing. You can also include the above-mentioned add-ons in your vehicle insurance policy to enjoy enhanced coverage.
