It is no news that if you are a car owner – old or new – one thing that you must buy and keep renewing is your car insurance. Getting a car insurance policy can benefit you in more ways than one. No matter how diligent a driver you are or how careful in your driving habits, your car always stands the chance of incurring damage due to unforeseen accidents, and more. Therefore, if you are planning on buying a car or are an existing car owner, it is prudent to invest some time in learning about car insurance policies and choosing the right one that suits your needs.
In this blog, we will discuss more about the car insurance policy and the most prominent types of car insurance coverage available. Read on!
Why Do You Need A Car Insurance Policy?
A car insurance plan is an agreement between the seller (insurance company) and the buyer that in case the vehicle incurs damage – due to both natural and man-made calamities that lead to damage of the car or even loss of the vehicle due to theft and more – the former will meet the monetary expenses for the damage. Signing up for a car insurance policy comes with its own benefits.
- Signing up for a car insurance policy can be of immense help when the car is involved in an accident causing damage to it. The insurance company – based on the policy you have signed up for – will provide you with the necessary coverage for the damages incurred. You will not have to shell money from your pockets and take a dent in your savings.
- With a car insurance policy, you are eligible to get coverage for any third-party liabilities you may face. In addition to this, if you are in any legal trouble for third-party injury or death, your insurance policy will be able to help you out.
- Apart from just accidents, car insurance plans also provide you with coverage for loss or damage due to several other risks, including natural and man-made disasters like earthquakes, floods, storms and cyclones, theft, and more.
These are a few benefits of signing up for a car insurance policy. There are several plans for you to choose from, based on your requirements. Let us take a look at the different insurance policy types that are available for cars today. Stay with us!
The Main Types Of Car Insurance Policies
The Insurance Regulatory and Development Authority of India (IRDAI) has made it mandatory for car owners to purchase third-party insurance when they buy a car. This is valid for three years after which they have to go for a renewal. In addition to this, insurance companies offer a wide range of car insurance policies you can choose from to keep your car secure at all times. Let us discuss a few important car insurance policies available in India –
1. Third-party-only coverage
According to the Motor Vehicle Act of 1988, it is mandatory for all car owners to at least have insurance for third-party risk. Third-party-only insurance policies provide monetary coverage for repairs and replacements done for damaged third-party vehicles, hospitalisation, and deaths of third-party people involved in the accident. The IRDAI requires car drivers to always carry their third-party insurance along with their license while driving on Indian roads.
2. Own Damage (OD) coverage
Up until September 2019, Own Damage insurance came bundled along with third-party insurance coverage policies. However, it has been made a standalone policy up for grabs for car owners. Own Damage coverage is a type of car insurance policy that provides your own vehicle with financial coverage for damages caused by accidents, natural calamities, theft, and losses.
3.Zero-dep insurance policy
This is an add-on car insurance policy that is the most beneficial especially to new car owners. While other policies provide you with monetary coverage for damages, you will still have to incur what is called the depreciation cost for your vehicle. But in the case of a zero-dep cover, the insurance company will take care of the depreciation costs as well, for up to the first 5 years.
4. Personal accident coverage
This is a policy designed exclusively to provide financial assistance or coverage for when you (as the owner and driver) need medical help due to injuries from an accident. This insurance policy is pretty straightforward and you can get your hospitalisation and medical bills following the accident reimbursed from the insurance company. Personal accident cover policy will also cover all expenses incurred in the event of an accident.
5. Comprehensive car insurance policy
This is the most common insurance plan available for cars as it provides the most protection compared to other insurance plans and add-ons. Right from protection against third-party liability, own damage coverage, accident coverage, and damage from storms, floods, theft, and fire, the comprehensive car insurance policy is one of the most sought-after plans, with additional benefits and add-ons attached to it.
These are some of the most prominent insurance plans and add-ons for cars. If you are looking to associate yourself with an insurance company, look no further than Chola MS. The Cholamandalam insurance company offers a wide range of insurance policies for your car. You can avail an array of benefits with the Cholamadalam insurance policies, including affordable premiums, unbelievably short claim periods, and most importantly, a prompt customer support system. What are you waiting for? Get in touch with us and sign up for a Cholamandalam insurance policy for your car right away! For more details visit our website.