Car Insurance- Benefits and Coverages

Car Insurance

Are you worried about the expenses if your car meet with an accident or face any physical damage? Worry not. And insure your car with Car Insurance. It provides coverage from unexpected situation such as- accidents, collision, bodily injury caused to your car or yourself, stolen or any kind of emergencies. The insurance company provides coverage against the premium that you pay. Based on your IDV or Insured Declared Value of the car, the premium amount is decided. If you increase the IDV, more premium you will have to pay and vice-cersa. In India, car insurance is mandatory. Usually, policies of car insurance are valid for a year and needs to be renewed to continue enjoying its benefits.

Benefits of Car Insurance

Here are some advantages of car insurance

  • It provides coverage for personal accident.
  • It insures your car against any kind of damage or loss. 
  • Your car gets coverage if it gets stolen or faced any kind of bodily injury.
  • It covers your car from damage caused by natural calamity, fire , self-ignition, riots, collision etc.    

Types of Car Insurance Coverages 

  • Third  Party Liability Coverage- It provides coverage against any damage caused to a third-party and its property. But it does not cover any loss incurred by you or your insured car. Under Motor Vehicles Act,third party liability is mandatory in India.
  •  Comprehensive Coverage– It is an extensive coverage which protects both third party and your car against any damage or loss. The premium that you pay for any damage to your car depends on its engine capacity, IDV and vehicle RTO.       Comprehensive coverage protects your against any damages caused due to-  
    • Any terrorist activity, riot, theft, strike or calamity.
    • Natural calamities like- flood, landslide, storm, cyclone etc.
    • Personal accident cover.

You can also extend the coverage by add on covers such as- engine protector, medical expenses, accessories cover, zero depreciation cover etc. 

Add-on Coverages for Car Insurance

In addition to the above coverages, following are the add-on coverages-

  • No claim Bonus- If you don’t claim during a policy year, you will receive the benefit of No Claim Bonus, where you will get a reduction in renewal premium in the following year. You can accumulate this bonus without claiming and can achieve discount on the premium.       
  •  Invoice Cover– In case of theft or total loss, you will get coverage for the original invoice of the car. It is applicable only if your car is less than 3 years old.
  •  Zero Depreciation Cover– Using this coverage, you don’t have to pay any extra penny for your car’s repairing. It is applicable only if your car is not more than 5 years old.
  •  Personal Accident Cover– It provides coverage against any damage caused due to any personal injury or disability.    
  •  Engine Protect Cover– It covers the repairing costs of engine which is usually very high. This coverage is very useful if you stay in a flood-prone area.    

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