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May 25, 2016

Just how you invest time on deciding which car you must purchase, you should be investing quite some time in understanding and deciding which car insurance is good for you and your car. To achieve this, you must know all the basics of car insurance. No matter if you are buying car insurance for the first time or if you are buying the insurance for your third or fourth new car, here are a few things that will be useful for you to understand car insurances in a better manner.

1. How exactly does a comprehensive car insurance policy work?

Car insurance protects you financially,there are two main financial protections available:

  1. a) Own Damage

    –Accidental damage partial loss to your car or total loss due to Accident & Theft

  2. b) Third Party Insurance covers Loss or damage to the third party arising out of your car i.e Injury, property damage or Death

    Act of God Perils (cause of loss) covered:

    Some of the debacles for which a car insurance gives financial coverage are natural calamities like fire, self-ignition, explosion, earthquake, lightning, flood, hurricane, typhoon, storm, inundation, tempest, cyclone, frost, hailstorm, landslide, and rockslides.

    Man-made disasters covered:

    It also gives protection in case of man-made disasters like burglary, riot strike, theft, malicious act, any damage in transit by road or rail, accident by external means, inland waterway.

    1. 2. What is not covered by your car insurance?

    Car Insurance is a named peril policy. So anything which is not spelled out in your car insurance policy will not be covered. Therefore, it is mandatory for everyone to read and completely understand their insurance policy papers, at the time of purchase.

    1. 3. Do car insurances provide personal accident cover?

    Yes, car insurance do provide personal accident cover for owner/driver by charging an extra premium. Most car insurers provide compulsory personal accident cover of INR 2,00,000 for the driver-cum-owner of the insured upon accidental death.

    By paying additional premiums, one can avail personal accident cover of up to INR 2,00,000 per person for more passengers as per the seating capacity of your car on unnamed basis.

    1. 4. What are some of the crucial facts/factors that should be considered before taking a car insurance?

    There are a few things that need to be considered before taking a car insurance. Firstly, you must assess your financial stature and set aside a budget because this will allow you to pick a coverage that will suit you financially. Secondly, depending on the car you own, your insurance premium and policy can drastically vary. For example, if you own a sports car, the insurance might be costlier than that you will be paying for a family sedan. Also, If you haven’t made a claim during your previous policy period, then you are entitled to a No Claim Bonus (NCB) discount during renewals. Therefore, if you are a cautious driver, then you get to pay reduced insurance premiums. NCB discount are allowed till a break of up to  90 days in insurance period; however, this is subject to inspection of the vehicle beforehand and declaration confirmation form of NCB from the insured.Finally, if you have a car with built-in safety features, like anti-theft and/ or engine cutoff systems, you are less prone to accidents and theft, so you may qualify for low cost car insurance premiums.

    1. 6. What is the most basic thing that must be considered while purchasing a car insurance?

    Car insurance premiums for the same set of services vary from one insurance provider to another. Therefore, you should compare the premium rates and coverage thoroughly before you buy a car insurance policy. Online insurance websites like provides you the precise comparison between various car insurers, in terms of coverage and pricing.

    1. 7. Can car insurances be bought online?

    With everything moving online, from ticket booking to grocery shopping, even car insurances can be bought online. Contrary to popular myth that online insurances are costly, buying an insurance online is cheaper than buying offline.

    1. 8. How to select the right online car insurer?

    With so many car insurance providers available, you might be confused on how to pick one. Also, if you are buying your first ever car insurance online, you might be all the more mystified about who to go to. This is why you must use online vehicle insurance brokers like to help you choose the best insurance for you.Cashless claim services is also to be considered before buying a policy.