India stands third behind the USA and China with regards to the number of car owners.
Courtesy of the growing middle-class population, Indian roads are witnessing exponential growth in the number of passenger vehicles, particularly cars. But with the increasing number of cars on Indian roads, mishaps and road accidents, however minor, have also become commonplace.
If you own a car then it’s quite possible that you’ve also experienced a bad day on the road at some point of time in your life. Women drivers face a lot more than what a typical male car driver does. Lack of technical knowledge of the vehicle is one such problem and women are equally in the danger zone of accidents as men are.
To tackle with this situation, there are a number of car insurance policies available in the market which are offered by over a hundred insurance companies. Each of these policies comes with its own terms and conditions and cater to a different demographic. There are certain aspects of car insurance policies that make each one quite unique from one another.
This article aims to give you a basic knowledge of what a generic car insurance covers. But before that let’s get you acquainted with the different types of car insurance available to you.
Comprehensive Car Insurance Policy, as the name suggests offers protection for both you and your vehicle. It comes with a few specific benefits which we’re going to cover in detail later in this article.
Third Party Liability Policy – This policy partially shields you against any damages incurred by a third party due to an accident involving your vehicle.
Now that the types of policies are clear, let’s head on to the different kinds of coverage offered by car insurance policies. Read on for some car insurance tips.
Around the year 2010, some of the top insurers decided to provide a range of add-on benefits for their policyholders by including a few extra features to safeguard the interests of their clients. These are:
A liability cover does not cover any sort of damage sustained by you or your vehicle. Instead, the sole purpose of this cover is to pay for any expenses, if you are found to be at fault behind the accident. As per a government directive, all the car insurance policies come with a certain amount of liability cover, provided that you meet the financial requirement in terms of paying the required insurance premiums.
As the name implies, this cover kicks in when your vehicle is involved in any form of collision irrespective of what the object is, whether it is another vehicle, a building, or any stationary object. This cover pays for the expenses you’ve incurred while getting the damaged parts of your vehicle repaired.
Bodily Injury Liability
Again, this cover takes care of any expenses if you’re found at fault in a particular accident which resulted in an injury to the other party involved. A lot of things like medical bills, legal representation of the opposing party, their rehabilitation, lost work time due to injury, and funeral costs among many others are usually handled with this coverage.
Fire and Theft Coverage
This type of insurance coverage comes into play when your vehicle is stolen or is destroyed due to a fire. Under this cover, you can cover the cost of repaired for damage caused due to a fire. If, in case your vehicle gets stolen you can claim a percentage of the cost of your car through this cover.
You can also have you car covered against natural calamities like floods, earthquakes, storms, typhoons, hurricanes, landslide, rockslide, cyclone and hailstorms among others.
While the aforementioned ones are the major covers offered by many of the car insurance policies, there are also several other policies which offer specific covers at an extra premium. Some of these include:
Some policies, like ICICI Lombard Car Insurance, have a depreciation cover. Under this cover, the insurer promises to cover a partial loss of your car, i.e., damaged parts which require a replacement. It could cost you approximately INR 2500 for a mid-range car to get this facility.
It’s quite possible that you get stranded in the middle of a highway or a busy road due to engine failures or a flat tire, you can find several policies which offer 24×7 assistance to take care of such situations. You may also be able to avail additional benefits like fuel, towing facility, medical coordination, accommodation benefits, and emergency taxi services.
Engine Protection Cover
Engine problems are very common with cars these days. So if, in case you car is stalled due to issues like leakage of lubricating oil or damage to the gearbox, certain insurance companies offer cover and ensure you get your claim settled.
This covers pretty much everything you’d like to know about car insurance in India. Make sure to read all the offer documents carefully and research the market thoroughly before you buy a car insurance policy. Go girl, and take on driving more confidently than ever before!