All You Need to Know About Car Insurance

When we are purchasing a new car, the last thing on our mind is the possibility of accidents or any damages to the vehicle. We tend to postpone that all-important duty of purchasing motor insurance till it’s too late.

Read more

Compare & Save upto 85%* on Car Insurance
Get Car Insurance starting
@ only 2094/year#
  • Renew Policy In2 Minutes

  • 20+ Insurers To Choose From

  • 51 Lakh+ vehicles insured

#TP price for less than 1000 CC cars. All savings are provided by insurers as per IRDAI approved insurance plan. Standard T&C apply.

Though motor insurance is considered to be an additional cost, it is absolutely detrimental that we invest in it to safeguard ourselves against vehicular damage or natural calamities.

There are two types of car insurance plans – comprehensive insurance and third-party liability. In comprehensive insurance, any damage to your vehicle is covered by third-party liability, damages caused on account of an accident by your vehicle to the other party.

Though only the latter type of coverage is mandatory, it is advisable that one invests in comprehensive insurance as well to cover all grounds.

Here are some of the most important benefits of insuring your car –

  • A large number of risks are covered – When it comes to a car, a large number or risks are there. They can range from man-made disasters like theft, accidents, fire, riots, malicious damages, and natural disasters like floods, earthquakes and storms, to name a few. Furthermore, in the case of third-party liability, any damage to the other party is also covered.

  • Insured Value – Your car can be insured for a value, known as the Insured Declared Value, which is based on the manufacturer’s price of the vehicle minus the depreciation of the vehicle subject to its age. If you opt for a zero depreciation cover, the depreciation amount is not deducted, but the whole amount is handed over to the owner.

  • Savings on premium amount paid – If you go through a claimless year, you can avail the no claim bonus (NCB), which offers you a discount on your premium. In some cases, you can reduce the premium by up to fifty percent every year. Furthermore, if you sell your vehicle, you can also transfer the NCB to your new vehicle and enjoy a lower premium payout.If an individual is a member of the Automobile Association of India, they can avail further discounts. Some insurance plans also provide discounts on the own damage premium (OD) to those who opt for a voluntary deductible. Furthermore, during claim-free policy years, individuals could also opt for a discount on OD premium.

  • Add-ons provided – There are various special add-ons provided by insurance providers, like roadside assistance and hospitalization to riders like engine coverage, towing, personal accident, ambulance, and medical expenses. These can be customized and chosen by the policyholder as per their preferences.
  • Vehicle replacement – In the unfortunate event of an accident, sometimes, the vehicle can be damaged beyond repair. In such cases, provided you pick the right insurance plan, you can have your car fully replaced with a new one that is equivalent to its value. This is in case where the damage to the car is so much that the claim amount received by the policyholder is much less than the actual value of the car.

While there are numerous benefits of purchasing or renew your car insurance policy, you should make sure that you do not undervalue the car in an effort to bringing down the premium. Doing so will drastically decrease the claim amount.

Besides, you should also ensure that there is no lapse in the payment of the premium because any damage to the car during the interim time results in no benefit offered by the auto insurance provider.

Written By: PolicyBazaar - Updated: 14 July 2021

Find similar car insurance quotes by body type

Hatchback Sedan SUV MUV
Disclaimer: Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by an insurer.

Why buy from Policybazaar?

  • 24x7 Claims Assistance
  • Cashless Assurance
  • 3-Day Repair Assurance
  • Free Pickup & Drop
  • Self Video Claims
  • Windshield Claims At Home
View Plans

Car insurance articles

Recent Articles
Popular Articles
Can I Buy Car Insurance Before Buying A Car?

28 Nov 2022

You usually don’t need car insurance while shopping for cars...
Read more
How Can I Buy New Car Insurance In India?

23 Nov 2022

With everything going online, buying new car insurance in India...
Read more
Difference Between Zero Dep and Comprehensive Car Insurance Policy

18 Nov 2022

If you are new to the motor insurance world, you must have...
Read more
How do I Renew Car Insurance After an Accident in India?

17 Nov 2022

A car insurance policy only protects your car till its expiry date...
Read more
Essential Parameters To Be Used To Compare Car Insurance

15 Nov 2022

Purchasing car insurance is just like buying any other essential...
Read more
Check Car Insurance Status Online on Parivahan Sewa/ RTO?
It doesn’t matter if you are an excellent driver or take your car out only once in a few months, your car must be...
Read more
Multiple Ways To Check Your Car Insurance Status Online
With everything going digital, checking vehicle insurance status online has become easier than ever. It not only...
Read more
Getting Your Duplicate Car Insurance Policy is Easy-Here’s How!
Losing your car insurance documents can be daunting. In such a state of affairs, the first thing that comes to your...
Read more
Transferring Car Insurance from One Person to Another
An integral part of selling a car, for both the buyer and the seller, is ensuring a successful car insurance...
Read more
How to Find Car Insurance Details by Registration Number?
As a car owner, it is mandatory to have a car insurance policy under the Motor Vehicles Act, 1988. Sometimes, you...
Read more