Car insurance protects you from a financial loss arising out of damage or theft of the car. Car insurance also covers for damage caused by a third party and is compulsory in India. Car insurance protects you and the car from financial liabilities and legal liabilities which include damage to the vehicle in a collision, hospitalization for injuries, and injury/damage to a third party.
Third party liability covers you for damage and injury caused to a third party (unrelated party). This is both vehicle and property damage. Third party liability protects the, you are at-fault driver. Third party liability is compulsory in India. You can also opt for collision coverage where protection is given to your car. Coverage is for damage caused in a collision usually in an accident. Theft is not covered in collision coverage. Comprehensive car insurance includes own damage cover where you are compensated for damage to the car and bodily injury caused in an accident. It is a comprehensive plan which covers damage to car, theft of the vehicle, a personal accident cover to protect you/driver and third party legal liability.
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IndianMoney.com advises a comparison of car insurance plans online as you save money and also enjoy higher coverage. You can save around 45-50% on car insurance plans and also get riders like engine protector, zero depreciation cover and others based on needs.
While buying car insurance online make sure to get comprehensive coverage for accidents, theft, fire, explosions, riots, lightning, acts of terror, personal accident cover and natural calamities.
SEE ALSO: Types of Auto Insurance
1. Check No Claim Bonus: An insurer rewards you for a claim free year with a No Claim Bonus (NCB). This is a discount on renewal premiums. This is cumulative and increases each year, enabling a saving of 10-50% on car insurance premiums.
IndianMoney.com advises you to check the NCB of insurers before opting for their car insurance plans.
2. Check for higher deductibles: You can opt for a higher deductible on car insurance plans. A higher deductible means you bear a sizeable portion of repair expenses on a car accident in exchange for a discount on car insurance premiums. Opt for higher deductible only if you’re a very good driver and are willing to bear the damage costs.
3. Car insurance riders: IndianMoney.com advises you to take a look at car insurance riders and opt for those which match needs. A rider gives higher benefits at an additional cost.
Zero Depreciation Cover: This is complete cover without factoring in depreciation. If your car is damaged in an accident, you get the entire cost of repairs.
Engine protection cover: You are protected against damage to car engine because of leakage of lubricating oil, water ingression into engine, hydrostatic lock and so on. This cover is a must if you reside in a water logged area or face severe monsoons. Starting the car engine in water logged area results in hydrostatic lock and car engine damage.
Vehicle replacement rider: This rider helps if car is stolen or wrecked beyond repair. Vehicle replacement rider is useful if car is a total loss. The damaged stolen car is replaced with a new equivalent one.
Roadside assistance: This rider gives crucial round-the-clock assistance for flat tyre change, lost key recovery, car towing, battery jump start and so on.
Ambulance and medical expenses: You/driver are compensated for ambulance and medical expenses up to Rs 10,000 in a severe car accident.
Rental reimbursement: You are compensated for using public transport, car rentals and so on when car breaks down.
4. Check exclusions:
IndianMoney advises to check exclusions in a car insurance plan.
These tips should protect from potential scammers of insurance claims and false insurance agents.
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