As a responsible car owner, it is of utmost importance to have car insurance for your four-wheeler. It is also made mandatory by the government to have a basic car insurance plan. For this matter and the protection of your car, it is necessary to understand your car insurance coverage. Depending upon your car and the financial liability that comes with it, you can buy various types of insurance policy coverages and add-ons.
You can now buy car insurance online or offline. There is no difference in the policy or coverage in either case. Depending upon your convenience and needs, you can decide if you want to buy your car insurance online or offline.
You need to keep certain things in mind before buying car insurance. Check the roads you travel more. See if it is coming into regular use or for occasional long trips. Make sure to know the purpose of your buy, whether you are buying it for your home or office. Based on these factors, you can make the best choice for a new car insurance policy.
One of the primary things to take care of is financial and legal liability. Make sure to choose an insurance policy that offers complete protection in case of any unfortunate circumstances or uncomfortable situations.
Your car insurance policy should come in handy at all such points. To get over any financial implications, have adequate car insurance with you. After all, the main purpose of car insurance is to provide extensive help whenever and wherever needed.
Let's check out all the car insurance types and choose the one that serves us the best.
Different Types of Car Insurance
There are various options of insurance policies available at your disposal. Know everything covered under these policies to make the right choice for yourself. Some types of car insurance are:
1. Comprehensive Car Insurance Policy
This is a package policy covering third-party liabilities, damage costs, loss due to theft or a natural disaster, etc. You will receive the full IDV in case your car goes stolen or is damaged beyond repairs.
2. Standalone Own Damage Car Insurance Policy
As the name suggests, this policy takes care of the damage to the policyholder's car. This policy does not extend to any third-party liabilities.
3. Third-party Car Insurance Policy
This mandatory policy requires everyone to drive their vehicle on Indian roads. This policy covers all damages to the third party in case of any unfortunate death or accident.
Add-on Covers
Over and above this, there are add-on covers that you can add to your base plan. This will protect your car from any liability that arises over and above a comprehensive car insurance policy or a standalone own damage policy. A third-party liability policy can allow you to add a personal accident cover and passenger cover over the same. You can buy this car insurance add-on online as well.
Some common add-on covers available for an additional premium are:
1. Personal Accident Cover
As the name suggests, this cover protects the owner or car's driver in case of unfortunate mishaps, accidents, or road collisions.
2. Passenger Cover
This cover protects your fellow passengers in case of an accident or damaging situation.
3. Zero Depreciation Cover
The zero depreciation in car insurance helps you get a complete claim on any spare parts of the car without factoring in depreciation.
4. No-claim Bonus Protection Cover
If you do not file for a claim during the tenure of your policy, you become eligible for NCB on your car insurance renewal. But that bonus reduces to zero with a single claim. You can protect this bonus even by claiming with an NCB protection cover. However, the insurer can restrict the number of claims during the policy period.
5. Roadside Assistance Cover
This cover assists you on the road throughout your journey. The insurance provider has many contacts in hospitals and with mechanics and garages. If you undergo any inconvenience on the road, this cover prevents you from such situations.
6. Tyre Security Cover
This cover only protects one spare part of the car. Any damage or wear and tear caused to your tyre are covered under this add-on.
Read more - What is Additional Coverage in Car Insurance
Conclusion
Evaluate different types of covers and the base car insurance policy. Once you have decided on the type of policy and add-on covers to buy, visit a car insurance provider near you to make the best choice.
Read more - 8 Things a First-time Driver Must Know
