Motor insurance is one of the most important things to have if you own a two- or four-wheeler. If you own a car in India, you are aware that third-party car insurance is required. The primary goal of a car insurance policy is to provide protection against damage to your vehicle or the vehicle of a third party in the event of an accident. However, when it comes to choosing a car insurance policy, the sheer number of options available can be overwhelming.
Car insurance based on Coverage
1. Third-Party Car Insurance -
Third-party auto insurance is legally required. It is a basic type of insurance coverage that protects you against third-party car or property damage. It also compensates for the physical injuries suffered by the third party. One of the most significant advantages of a third-party car insurance policy is that the premium is much lower than that of a comprehensive policy. Furthermore, third-party insurance does not personalize your plan or purchase add-ons. Furthermore, third-party car insurance does not protect you from vehicle damage or theft.
2. Comprehensive car Insurance -
This type of insurance policy offers complete coverage. It covers third-party liabilities as well as vehicle damage. Furthermore, with comprehensive coverage, you can receive compensation if the accident results in your death; the benefit will be paid to your family members. Although the comprehensive policy has a higher premium than third-party insurance, the coverage provides complete financial protection against all unexpected events. Furthermore, you can broaden the scope of your policy coverage by purchasing add-ons with a comprehensive insurance policy. Add-ons or Riders are additional insurance policies that you can purchase for a fee to protect you against risks that are not covered by your basic policy.
Car insurance add-on plans:
Zero depreciation coverage -
This is a popular motor insurance add-on plan that provides significant savings during a claim. It is also known as a nil depreciation policy or a bumper to bumper policy. Consider the fact that your vehicle is covered by a comprehensive auto insurance policy. You will still be responsible for the expenses associated with vehicle depreciation and excesses if you file a claim. However, if your comprehensive auto insurance policy was supplemented with zero depreciation coverage, the insurer would cover the costs of vehicle depreciation.
Return to Invoice (RTI) cover -
This add-on plan covers total loss expenses for your vehicle. In the case of a complete loss, it provides you with the vehicle's actual invoice value, without taking into account depreciation with age.
3. Roadside Assistance Cover- This add-on cover protects the policyholder from incidents such as a flat tyre, fuel depletion, the need for expert scrutiny, and so on. If your car breaks down in the middle of the road, your insurance company will come to your aid. You will receive assistance so that the vehicle can be easily moved to the nearest service station.
Key Replacement Cover -
People frequently misplace or lose their car keys. In this case, you may be unable to use your vehicle, and obtaining an original replacement key from the car manufacturer may be prohibitively expensive. If you have key replacement coverage, the insurer will reimburse you for getting a replacement key. With this add-on, you can have your keys replaced if you lose them or if your stolen vehicle is recovered.
NCB Protection Cover -
The NCB (No Claim Bonus), is a bonus given to all policyholders who do not file a claim during the policy year. The NCB can assist you in obtaining a significant discount on the policy's renewal premium. Some insurers provide NCB by increasing the sum insured at the time of renewal. However, if you do not claim for a few years, you may lose the accrued NCB benefits. This is where purchasing an NCB protection cover can come in handy. If your vehicle insurance includes NCB protection coverage, you can keep this bonus even if you file a claim.
Car owners should be wise enough to pick the best vehicle insurance coverage options in order to reduce risk while maximizing benefits. While mandatory liability insurance is the least expensive option, it does not protect the policyholder's interests. As a result, the insurance policy should be chosen based on the make and car model, frequency of use, place, and other considerations. You can choose the finest car insurance by comparing and analyzing various insurances.