A good car insurance policy from the top insurance companies in India helps in managing unexpected expenses. It financially protects you when your car meets with an accident or suffers damage. However, the protection you receive depends on the policy you choose.
Third-party insurance covers eligible liabilities towards others, while comprehensive insurance also covers damage to your own car. You can also select optional add-ons for extra protection. Understanding these coverage options helps make a better choice. It also allows you to compare policies based on your car’s needs, your budget and the coverage you want.
What Does a Car Insurance Policy Cover?
So, what your insurance will cover completely depends on the type of policy you purchase. Here, it is important to note that, in India, third-party insurance is mandatory. But comprehensive insurance offers wider protection by combining third-party liability cover with own-damage cover. Here are the details of what both types of insurance will cover.
Third-Party Car Insurance Coverage
Third-party car insurance protects you against eligible legal and financial liabilities if your insured car causes injury, death or property damage to another person.
- Third-Party Property Damage: It covers the eligible damage your car causes to another person’s property.
- Medical Expenses for Injuries: Covers eligible third-party claims for injury caused by an accident involving your car.
- Compensation for Death: In case of an accidental death of a person by your insured car, the policy covers compensationÂ
Comprehensive Car Insurance Coverage
A good comprehensive car insurance from insurers such as Bajaj General Insurance includes third-party protection and own damage cover for eligible events.
- Third-Party Liability: If your car causes an accident, this cover pays for eligible injuries, deaths or property damage suffered by others.
- Damage to Your Own Car: After an accident, your insurer pays for eligible repair costs for damage to your car.
- Personal Accident Cover: In case the owner-driver dies or suffers permanent disability in a road accident, this cover provides financial support.
- Theft of the Car: If your car gets stolen, you receive compensation based on its insured value and the policy terms.
- Fire Damage: When a fire damages your car and it cannot be repaired, the insurer settles the total-loss claim as per the policy.
- Natural Disasters: The policy covers losses for events such as floods, earthquakes, cyclones or landslides that damage your car.
- Man-Made Events: Riots, vandalism or acts of terrorism can also damage your car. Your insurer may cover the resulting loss.
What Add-Ons Can Further Boost the Protection?
A comprehensive car insurance coverage may not include every criterion that you want protection for. So, insurers provide multiple add-on options to extend the protection. For example, when you purchase a zero depreciation add-on, it reduces the depreciation deductions as car parts lose value over time. Here is how other add-ons boost your policy:
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Roadside Assistance Cover
A breakdown can leave you stranded on the road. Roadside assistance may provide services such as towing, battery jump-starts, emergency fuel delivery and help with a flat tyre.
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Engine Protection Cover
Engine repairs are expensive and standard policies usually exclude them. This rider is particularly helpful when water enters the engine or causes damage.
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No-Claim Bonus Protection
A No-Claim Bonus (NCB) can reduce your premium when you renew your policy after a claim-free period. NCB protection helps retain this benefit.
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Consumables Cover
Routine repair bills often include items such as nuts, bolts, lubricants, grease and engine oil. A consumables add-on can cover eligible costs for these items.
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Key Replacement Cover
Replacing a lost or damaged car key can be costly, especially if it is electronic. This add-on covers key replacement or lockset expenses.
Final Words
Choosing the right policy should be a well-thought-out and informed decision. It requires careful consideration of your needs and budget. You must also assess your car’s age, model, value and how often you drive.
Lastly, for finalising a policy, compare premiums, coverage, exclusions and useful add-ons from different insurers. Also, check the cashless garage network and claim settlement record before making a decision. And most importantly, read the policy terms carefully.
