Introduction
Car ownership seems like a straightforward affair until you're faced with the maze of insurance policy options. Beyond the shiny exterior and powerful engine lies a critical facet of owning a vehicle - car insurance. "Which insurance is best for the car?" you wonder as you navigate through pages of policy documents and premium rates.
This guide can help you decipher types of car insurance policies, understand advantages, and also get a comprehensive view of car subscriptions in India.
Types of Car Insurance Policies in India
To know which insurance is best for a car, you should understand different types of car insurance policies to making an informed decision. There are mainly four types of car insurance in India.
Let's deep-dive into these types of car insurance in India to understand them better.
Third-Party Car Insurance Policy
This is the most basic car insurance policy required by law in India. It safeguards you financially against damages or injuries caused to a third party. However, this policy does not cover damages to your vehicle.
Personal accident cover
The personal accident cover provides financial support in case the policyholder suffers accidental injuries or death while driving the insured vehicle. It is a mandatory component of car insurance policies in India.
Comprehensive Car Insurance Policy
Comprehensive car insurance is a type of car insurance policy that provides robust protection, covering both damages to a third party and your vehicle. It insulates you from a wide array of risks, including accidents, theft, fire, and natural calamities.
Own Damage Car Insurance
Own Damage car insurance focuses primarily on providing coverage for your vehicle, safeguarding it from damages resulting from incidents like accidents, theft, or natural disasters.
Zero Depreciation Car Insurance
Zero Depreciation is another type of car insurance policy that ensures that you receive the full claim amount without any deductions for depreciation. This add-on cover is available with a comprehensive car insurance policy.
Understanding coverage types
Before choosing a car insurance policy, let's get acquainted with the common coverage types:
1. Liability Coverage: It covers damages caused to a third party.
2. Collision Coverage: This covers damages to your vehicle resulting from a collision.
3. Comprehensive Coverage: This provides coverage for damages due to theft, fire, natural calamities, etc.
4. Uninsured/Underinsured Motorist Coverage: It protects you if you're involved in an accident with an uninsured driver.
Factors affecting car insurance rates
Several factors influence the premium you pay for your car insurance policy:
- Age: Younger drivers usually have higher premiums than more experienced ones.
- Make and Model of the Car: The premium is affected by your vehicle's make, model, and age.
- Driving History: A clean driving record can lead to lower premiums.
- Location: Areas with higher rates of accidents or theft might increase your premium.
- Deductible: A higher deductible may lower your premium but increases out-of-pocket expenses during claims.
With a car subscription, there's no need for additional insurance payments; your monthly fee includes insurance and maintenance without any down payment.
Balancing Premium Vs Insured Declared Value (IDV)
A fundamental aspect of comparing car insurance policies is understanding the relationship between the premium and the Insured Declared Value (IDV) of your vehicle.
1. IDV is the maximum amount payable by the insurance company in case of total loss or theft of your vehicle.
2. The premium is the amount you pay for the coverage.
It's essential to strike a balance between a reasonable premium and an adequate IDV.
Add-on covers
Add-on covers enhance your car insurance policy by providing additional coverage:
1. Zero Depreciation Cover: It avoids depreciation deductions during repairs/replacement.
2. Engine Protection Cover: This covers damages to your car’s engine.
3. Roadside Assistance Cover: It provides support during emergencies like a flat tyre or battery jump-start.
4. No Claim Bonus Protection: It protects your No Claim Bonus (NCB) even if you claim during the policy period.
5. Personal Accident Cover: It provides coverage for accidental injuries or death while driving.
Conclusion
Remember, picking the right car insurance policy isn't just about finding the cheapest option. It's about understanding your needs, evaluating options, and making an informed decision. So, buckle up and drive toward a stress-free journey with the right insurance riding shotgun.
Now, wouldn't it be great if you could avoid this confusion altogether? Interestingly, with Quiklyz car subscription service, you can! Subscribe to a brand-new car for an all-inclusive monthly fee that takes care of the insurance as well. With a car subscription, It's all about hitting the road with complete peace of mind!
