Car insurance is one of the most important insurance products that provide financial compensation in case your car is damaged, lost, or stolen due to any unforeseen circumstances. There are different types of car insurance plans such as comprehensive car insurance, third-party car insurance, and standalone car insurance. As per the Motor Vehicles Act of 1988, third-party car insurance is in fact a must-have for all car owners to ensure third-party liability is covered. However, there are certain things that you must keep in mind while buying car insurance in India.
What is Car Insurance & its Types?
A car insurance is basically an agreement between the insurance company and the policyholder, where the former agrees to provide financial compensation in case there is any damage to the car or a third-party or even if the car is lost or stolen. With a car insurance plan, you can get your car repaired at any of the network garages or even seek reimbursement in case it is not repaired at a network garage. Now, based on the nature of the coverage offered under a car insurance plan, explained below are the different types of car insurance plans:
- Comprehensive Car Insurance: A comprehensive car insurance plan is one that provides coverage for both standalone damages to your vehicle as well as if a third-party is injured as a result of your vehicle. However, the premiums of comprehensive car insurance are comparatively higher.
- Third-party Car Insurance: As the name suggests, third-party car insurance provides coverage in case a third-party individual or property is damaged as a result of your vehicle. It is important to note that irrespective of which type of car insurance plan you are buying, a third-party car is a must-have as per the motor laws.
- Standalone Car Insurance: Standalone car insurance is another type of car insurance plan that provides coverage in case the insured car is damaged or lost. There is no coverage for a third-party damage under this plan.
Tips to Buy Car Insurance in India
If you are buying a car insurance plan for the first time, there are certain things that you need to be aware of such as the following:
- You must be aware of the different types of car insurance plans that will help you choose the best plan for yourself. You must understand the differences between the different types and accordingly buy the right type of right car insurance for yourself. In addition to checking the different types of car insurance, you must also check the different car insurance plans offered by different car insurance companies.
- You must always understand your requirement and budget and accordingly buy a car insurance plan. Always make sure to buy a car insurance plan that will fit your budget and for which you will be able to pay the premiums on time.
- You should also check the different add-ons available that will help you enhance the benefits of a car insurance plan. Some of the different add-ons available with car insurance plans include zero depreciation cover, engine protection cover, no claim bonus cover, and more.
- You should buy a car insurance plan with a company that has a larger number of network garages. This is because it is at these network garages, where you can get cashless repair facilities. So, the greater the number of network garages, the more beneficial will it be for you as a policyholder.
- The premium of a car insurance premium depends on the installation of devices like anti-theft. So, you need to be mindful that the car insurance premium will vary depending on such additional features in your car.
Take Away
So, when you decide to buy a car insurance plan, you should always keep the above-mentioned tips in your mind.