A Comprehensive Buying Guide for Car Insurance in India
Buying a car is an exhilarating experience. One spends countless hours test driving various models to pick the right car with the jazziest features and top-notch safety requirements. But between this selection, a critical thing that often gets ignored is the motor insurance policy.
The Motor Vehicles Act of 1988 makes it mandatory for all vehicles to have an insurance policy. To legally drive a vehicle, a motor insurance policy is a necessary document along with your driving license and vehicle’s registration document. This article is a one-stop guide to buy a car insurance policy and things you need to know.
Car insurance plans are broadly categorized into comprehensive and third-party car insurance. A comprehensive policy provides all-round coverage for you, your car as well as third-party liabilities. In contrast, a third-party cover offers limited coverage for liabilities due to third persons. The law makes it compulsory to have third-party cover to ensure the safety of others at its bare minimum. You can purchase 3rd party car insurance, the premiums regulated by the Insurance Regulatory and Development Authority of India (IRDAI).
What falls under the purview of your car insurance policy?
Your policy’s coverage is based on the type of plan you select, i.e., third-party or comprehensive. Events like lightning, earthquake, floods, hurricanes, etc., are covered by a comprehensive cover. It also extends to providing coverage for human-made events like burglary, theft, damage in transit, the act of terrorism, etc. While these form part of a comprehensive policy, a third-party cover and personal accident cover are mandatory in nature. Any disability, either temporary or permanent in nature, is covered under this policy, whose coverage extends to ₹15 lakhs. Lastly, a car insurance policy includes mandatory coverage for third-party liabilities. This cover is the minimum requirement that every vehicle owner must have and protects the policyholder against liabilities raised by the third person.
What are things to remember when buying a car insurance plan?
Third-party coverage is the minimum requirement, but you must consider the best possible coverage to ensure your car’s safety. To pick one among the plethora of options, note the following points and decide based on it.
Policy terms: Knowing the policy terms will help make a careful evaluation at the time of purchase. A common oversight by most buyers is they check for the inclusions but miss on the exclusions part. These exclusions can be a deterrent to your buying choice. So, make a prudent decision based on the scope of the policy to make an informed choice.
Add-on covers: Add-ons are insurance riders that enhance the policy coverage. These add-ons help to extend the scope of the insurance plan. So, before you buy car insurance online, make sure to understand how these add-ons benefit to avail maximum coverage based on your requirement.
Claim procedure: It is another critical factor to consider. Knowing the steps of making an insurance claim is essential since it helps to understand how quickly the claim shall be settled and the procedural formalities you should be aware of.
Remember these tips when buying a car insurance policy to ensure a comprehensive cover for your car. It is essential to know what you are buying and make sure to clarify any concerns beforehand.