Car Insurance- the value cars hold in our life!

Car insurance is a type of insurance that provides coverage to the car and its owner against unforeseen accidents resulting in monetary loss. A vehicle insurance policy is the contract in which the insurer covers on-road liabilities and damages to the insured motorist's property due to third-party claims and own damage.

What is Car Insurance?

It is a type of policy that protects you and your car against liability in the event of an accident, theft, fire, calamity, or third-party person or property damage. It also covers the owner-driver's accident damages or hospitalization expenses.

What is Car Insurance

Types of Car Insurance Policy in India

Car insurance in India is a legal requirement. Still, various types of car insurance policies are available in the market. The most common type of policies are listed down below:

  • Comprehensive car insurance policy

    A comprehensive policy is India's most comprehensive type of car insurance policy. It offers protection against all possible risks associated with owning a car. This policy covers damage to the car caused by accidents, theft, fire, and natural calamities. It also provides coverage for personal injuries and medical expenses incurred in an accident.

  • Third Party Policy

    A third party policy is the most basic type of car insurance policy available in India. It covers damage to the car caused by accidents involving third parties. It does not offer any coverage for damage to the car caused by accidents involving the policyholder or their family members.

  • Limited Policy

    A limited policy is a hybrid of comprehensive and third-party policies. It offers coverage for damage to the car caused by accidents, theft, fire, and natural calamities. Still, it does not offer coverage for personal injuries and medical expenses. This policy is ideal for people who want to ensure their car against accidental damage but are not interested in coverage for personal injuries and medical expenses.

  • Pay As You Drive Policy

    Pay as you drive policy is a type of car insurance policy becoming increasingly popular in India. This policy charges the policyholder based on the number of kilometers they drive. This policy is ideal for people who do not drive their cars often and want to save on their insurance premiums.

Types of Plans

What is Car Insurance

Comprehensive Cover


What is Car Insurance

Third-Party Liability


What is Car Insurance

Limited Policy


What is Car Insurance

Pay As You Drive Policy


How to Calculate Car Insurance Premium?

There are a few factors that are being considered while calculating car insurance premiums. Insurance companies consider the make and model of your car, your driving record, and the amount of coverage you choose.

The best way to get an accurate estimate for your car insurance premium is to use a car insurance calculator. This will give you a rough estimate of what you can expect to pay each month. Following are the parameters that are taken into consideration before setting the car insurance price:

  • IDV or Insured Declared Value

    The insurance company calculates the premium amount based on the IDV of the car. The IDV is the current market value of your car at the time of taking the policy minus depreciation.

  • Age of Car

    If you own an old car, its premium would be lower than a new one. The insurance company considers the age of your car while calculating the premium.

  • Engine Capacity

    The engine capacity is also a deciding factor while calculating premiums. Cars with high engine capacity are charged more for insurance than those with low engine capacity.

  • Geographical Area

    The geographical area you reside in is also a parameter that the insurance company looks into while calculating premiums. Cars in congested areas are charged more for insurance than those in less populated areas.

  • Type of Car

    The type of car you own is also a parameter that the insurance company considers while calculating premiums. Some cars are more prone to thefts and accidents than others, and hence, the insurance company charges more for those cars.

Buy/Renew Car Insurance and Save up to 75%

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How to Calculate IDV in Car Insurance

IDV = Car's Showroom price + Accessories cost - depreciation value

The insurance company calculates the premium amount based on the IDV of the car. The IDV is the current market value of your car at the time of taking the policy minus depreciation.

Thus, the formula to calculate own damage premium amount is:

Insured Declared Value X [Car Premium as per the insurer)] + [Optional Benefits] - [NCB/Discount]

For example

  • :a car with an IDV of Rs 1, 00,000 would have a car insurance premium amount of:
  • IDV X [(Car Premium as per the insurer)] + [(Optional Benefits)] - [(NCB/Discount])
  • = Rs 1, 00,000 X (Rs. 5,000) + (Rs. 5,000) - (Rs. 5,000/20)]
  • = Rs 1, 00,000 X Rs. 25,000 + Rs. 25,000 - Rs. 2,500
  • = Rs. 27,500

Thus, the own damage premium for this car would be Rs 27,500. It is always advisable to use a car insurance calculator to estimate how much you would be paying for car insurance every month.

How to Compare Car Insurance Online?

Now a days, it is very easy to compare car insurance online. All you need to do is visit a few websites that offer this service and enter some basic information about your vehicle and yourself. Within minutes, you will have a list of quotes from different providers. It is important to do your research from various websites before you choose your plan.

All automobiles must be insured against accidents in India as per the Motor Vehicles Act, 1988. Since then, many car companies have compensated for loss and damages incurred in accidents, fire, and theft.

Following are the factors that will help you to compare car insurances online:

  • Car Model & Variant

    First and foremost, you need to decide on the car model and variant you want to insure. Different models of cars will have different insurance rates. So, it is important to choose a car within your budget.

  • Year of Manufacture

    The year of manufacture also plays a role in the insurance rates. Older cars will have higher rates than those that are newer.

  • CNG

    If your car runs on CNG, you will have to pay a higher premium for insurance. This is because CNG cars are considered to be riskier to insure.

  • Location

    The location of your car also affects the insurance rates. If you live in a city with high crime rates, your rates will be higher than if you live in a rural area.

Car Insurance Covers?

Coverage under Car Insurance Policy

What is covered?

  • Injuries and property damage
  • Damages to your vehicle in the event of an accident.
  • Medical expenses for both the driver and passengers of your vehicle.
  • Liability for damages to other people or their property.

What is not covered?

  • Damage to your vehicle is considered wear and tear.
  • Damage caused by a natural disaster, such as a tornado or hurricane.
  • Vehicles are used for commercial purposes, such as delivery trucks or taxis.
  • Coverage for personal belongings that may be in your car.
  • Loss of damage to the car due to theft or vandalism.

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Add-On Covers in Car Insurance Policy

When looking for car insurance, you will likely come across policies that offer add-on covers. These are additional benefits that you can purchase to enhance your policy. Typically, add-on covers provide extra protection in specific areas, such as collision damage or medical expenses. Covers such as no claim bonus, engine and zero depreciation cover, etc., are popular add-on covers. Let's discuss in more detail:

Road Side Assistance Rider

With this rider, you avail the benefit of round-the-clock assistance when your insured car suffers a mechanical breakdown. When your insured car breaks down at a place where you are unable to find a mechanic garage, this add-on will arrange for mechanic assistance. You just have to call your insurance company. Your car will get towed to the nearest garage.

Return to Invoice

Every car owner is scared of total loss of the car which can happen in case of severe accidents. In such a scenario, the insured car suffers complete damage that is beyond repairs. Total loss can also happen when the car is stolen. In both these cases, the general insurance company is legally responsible to compensate the Insured Declared Value (IDV) of your car.

Zero Depreciation Cover

A depreciation cover pays the full value of your car, even if it has decreased in value due to age or wear and tear. This is a valuable cover if you plan to keep your car for a long time.

Engine Protection Cover

This coverage pays for repairing or replacing your car's engine if it is damaged in an accident.

Key Replacement

There can be instances when you lose your car keys. Not only the clumsy ones but careful people can also misplace their car keys. And in this involves a cost. A car key is not something which your local key-maker or locksmith can make. In this technologically driven time, car keys are computerized and replacing them involves a significant cost. With a key-replacement add-on the insurance company bears this cost.

No Claim Bonus Protection Cover

No-claim bonus, or NCB, is a discount that you receive on your car insurance premium for not making any claims during the policy period. This cover ensures that you don't lose your NCB if you need to make a claim. If you make a claim, your NCB will be reduced or may even be lost altogether.

exclusion of health insurance plans

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Benefits of Buying Car Insurance Online

Benefits of Buying Car Insurance Online

A car insurance policy has a period of time during which it is effective. After it gets expired, you must renew it to keep your vehicle insured. You can renew your vehicle insurance policy online or offline. Even though many of us continue to renew our automobile insurance policies by the old-fashioned way, but opting for online renewal is preferable as it has many advantages. Here are some of the benefits that come with good car insurance online:

Saves time

Renewing your car insurance policy online is a much faster process than doing it offline. All you need to do is fill out an online form, and your policy will be renewed in no time.

Easy to track

When you renew your car insurance policy online, you get an online account where you can track the progress of your application and see the status of your policy.

Saves money

You can save your money by renewing your car insurance policy online. Most insurance companies offer discounts to customers who renew their policies online.

24X7 access

You can renew your car insurance policy online round the clock as per your convenience because online access has no time boundation.

Convenient

Renewing your car insurance policy online is a very convenient process. You can do it from the comfort of your home, and you don't have to go through the hassle of standing in long queues.

Safe and secure

Renewing your car insurance policy online is a safe and secure process. All your personal information is protected by state-of-the-art security software.

Printable receipts

You automatically receive printable receipts for your records when you renew your car insurance policy online.

Automatic renewal

Most car insurance companies offer automatic renewal of policies. This means that your policy will be automatically renewed without any action on your part.

Option to pay in installments

Some car insurance companies also offer the option to pay for your policy in installments. This can help you to spread out the cost of your policy over several months.

Customer support

If you have any questions or problems while renewing your car insurance policy online, you can always contact the customer support team of the insurance company, and they will help you out.

How to Renew Car Insurance Online?

Renewing your car insurance policy online is a very simple process. Make sure to ask your insurance agent about the coverage available what each add-on will cover. All you need to do is follow these simple steps:

  • Go to the car insurance renewal section.
  • Enter your policy number and click on the submit button.
  • Enter your date of birth and click on the submit button.
  • Review the details of your policy and make any changes if necessary.
  • Enter your contact information and credit card details.
  • Click on the renew button and wait for your policy to be renewed.
  • You will receive an email notification once your policy has been renewed.

You'll get a new car insurance policy document sent to the email address you specified when you renewed your policy. You can always obtain a copy of the policy document by downloading it and printing it out. Renewing your car insurance policy online is a quick and easy process that comes with many benefits. Make sure to take advantage of it and renew your policy today!

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Benefits of Renewing Car Insurance Policy Online

Every car insurance policy has a validity period. After its expiry, you need to renew it for keeping your car insured. You can renew your car insurance policy either offline or online. Even though many of us still follow the traditional method of offline renewal of the policy but opting for online car policy renewal is better.

Simple Customization of Policy

You can easily customize the policy to suit your specific needs while renewing it online. All you need to do is mention the exact requirements. The insurance company will provide a policy that fulfills all your needs.

Secure Renewal/Purchase Process

The entire renewal or purchase process is very secure, and all your personal information is safe. You don't need to worry about data theft or hacking while renewing your car insurance policy online.

Flexible Payment Options

You can choose to pay for your car insurance policy in installments, making it easier for you to manage the expenses. You can also pay through other modes such as net banking, credit/debit cards, etc.

Instant Policy Issuance and Delivery

Once the payment is made, the policy is immediately issued and delivered to your email address. You don't have to wait for long periods to get your policy document.

Online Tracking of Renewal Status

You can keep track of your car insurance policy renewal status online. This way, you will always know when your policy is set to expire and when it needs to be renewed.

Easy No Claim Bonus Transfer Process

If you have any no claim bonus accumulated on your previous policy, the process of transferring it to the new policy is very easy. You can do it all online without any hassle.

Car Insurance Claim Online

How to File a Car Insurance Claim Online?

The first step is to contact your car insurance company as soon as possible after the accident. You will need to provide details such as the policy number, name of the driver, date and location of the accident, and a description of the damages. When you are in an accident, the most important thing is to make sure that everyone is safe. After that, you need to call the police and file an FIR (First Investigation Report). . Here is what you need to do in order to file a car insurance claim:

Here is what you need to do in order to file a car insurance claim:

In order to file a car insurance claim, you will need to provide your policy number, the name of the driver, the date and location of the accident, and a description of the damages. You should also have your driver's license, registration, and proof of insurance available.

In your claim, you will need to provide a description of what happened in the accident. This should include the date, time, and location of the accident, as well as a description of the damages to your car.

Contact your car insurance company as soon as possible after the accident. You will need to provide details such as the policy number, name of the driver, date and location of the accident, and a description of the damages.

Once you have filed your claim, your insurance company will provide you with instructions on what to do next. Generally, you will need to take your car to an authorized repair shop and provide a copy of the repair bill to your insurance company.

It can take some time for your insurance company to process your claim. Be patient and stay in communication with them as they work to resolve the situation.

Documents Required

When you are in an accident, the first thing you need to do is contact your car insurance company. In order to process your claim, they will need certain information and documents from you. Here is a list of the documents that are typically required:

  • Proof of ownership: This can be a copy of your registration certificate (RC).
  • Copy of police FIR
  • Proof of insurance: This can be a copy of your car insurance policy or your insurance card.
  • Fitness certificate for commercial vehicles
  • Proof of accident: This can be a police report, photos of the accident scene, or witness statements.
  • Car Registration Certificate (RC)
  • Repair estimate: This is a document from a qualified repair shop that estimates the cost of repairs.
  • Vehicle inspection report: This is a document from a qualified mechanic that states the condition of your car after the accident.
  • Vehicle registration: This is a copy of your car's registration card.
  • Driver's license: This is a copy of your driver's license or state ID card.
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  4. We pursue your claims till the very end.
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Questions about Car Insurance

Have Questions about Car Insurance?

Insurance would be much easier for you after browsing the list below.

The minimum coverage you are required to have depends on the state you live in. However, most states require at least liability insurance.

This varies based on a number of factors, including your driving record, the type of car you drive, and the amount of coverage you choose

Liability insurance covers other people’s injury and damage to their property in an accident.

If you don't have car insurance and are involved in an accident, you could be held liable for any damages caused. You could also face fines and penalties as per your state law.

The best way to save money on car insurance is to explore online and compare rates from different insurers. You can also choose to increase your deductible or opt for lower coverage levels.

Collision insurance covers damages to your car in the event of an accident. It typically costs more than liability insurance, but it can be worth it if you have a newer car.

Comprehensive insurance covers damages to your car that are incurred due to activities like theft or vandalism and not by accidents. It typically costs more than collision insurance, but it can be worth it if you live in a high-crime area.

Rental car coverage is not always necessary, but it can be helpful if you plan to rent a car often. This coverage can help you to pay for any damages that occur to the rental car.

Uninsured motorist coverage protects you in the event that you are involved in an accident with a driver who does not have insurance. Underinsured motorist coverage protects you in the event that the other driver does have insurance, but their policy does not cover all of the damages.

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