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As a vehicle owner, have you asked your insurer what they cover - car insurance

car insurance

A car insurance coverage differs from plan to plan. And to understand what your car insurance is covered, you have to read the documents related to the coverage carefully. Always make sure that you have read the exclusion section of your car insurance policy document as it highlights things that your insurer will not cover.

Generally, the insurer should compensate for the loss suffered by the third party involved in the accident if you have opted for third party car insurance. That includes the cost of repairing the vehicle, any medical expenses, legal charges if any, and the amount of compensation to the victim. However, some insurance companies do not include all of this in their basic plan. Please ask your insurer what they cover.

If you have a comprehensive car insurance policy, the insurance company will pay the third party's liabilities and also take care of the costs involved in repairing the damage to your car. The insurer will also pay for the medical expenses you incurred as a result of the accident.

Additionally, your insurance coverage depends on the add-on you choose when purchasing the policy. The policyholder can obtain add-on riders for the extra protection they seem. In the event of an accident or when you submit a claim, the insurer will check if you have any add-ons that you can use and then process the request. Some of the most popular riders are prompt lane, engine and electronic circuit cover, no-claim reward protection, personal injury cover and regular cash allowance coverage.

Please note that most insurers are not covered the following:

  • Damage by the driver without a valid driving license.
  • Mechanical or electrical failure of the car.
  • If a person driving under the influence of alcohol or other drugs causes an accident.
  • Car depreciation (as long as you have an add-on that covers it).
  • Damage to tires.
  • Electronics
  • All Accessories
  • Wear and tearable parts like tires, belts, etc.
  • Batteries
  • Wiring harness
  • Handling damage of interior like music system
  • Any accessory theft (like music system, or GPS)
  • Fiber parts and glass is covered only by 50% of the price (excluding you non-depreciation insurance package). 
There is a lot of coverage available on the market for motor insurance; therefore, their coverage varies from one insurance policy to another. Insurance policies are usually classified into three major components:
  • Third-party insurance
  • Add-ons
  • Comprehensive coverage 
And each of these policies provides different types of coverage, and they are as follows:

Third-party coverIt is the most basic type of insurance cover on the market and has been made mandatory by the Government of India. Therefore, to drive their vehicles safely on Indian highways, all vehicle owners must have third party cover. An insurance policy protects from all civil, financial and physical losses incurred by you in an accident. Third-party insurance premiums are the lowest among all other car insurance plans.

Third-party liability car insurance only covers damage to another person, automobile, or property from injury or accident. It does not protect your vehicle from damages.

Add-ons: While comprehensive insurance policies protect from most damage from an accident, many are still not covered. Thus, add-ons are essential for the overall protection of yourself and your car. There are many add-ons available in the market, such as engine protection cover, NCB protector add-on, etc. Now you can easily buy your choice of add-ons on your comprehensive car insurance online.

Not all car insurance companies can provide such cover. Therefore it is best to contact the provider to get complete information about their policy plans and benefits that they provide directly.

Apart from these, there are many car insurance add-ons on the market, which can be quite useful. Listed below are some of them-

Zero Depreciation- It makes full claims on the value of the parts to be replaced in the event of an accident. It is one of the most popular add-ons for new car owners.

No-Claim Bonus Protection (NCB) - This is a waiver of premium offered by insurance companies if the vehicle owner has not made a single claim during the period of the motor insurance policy.

Comprehensive insurance: Comprehensive insurance the policy is also known as your damage policy; this not only covers the damage done to a third party vehicle but also protects your vehicle. Most insurers have started providing online car insurance due to the digital revolution; thus, you can now easily compare and purchase the best comprehensive coverage at the lowest possible premium.

Following are some of the covers/benefits (in short) which are offered by car insurance providers under a comprehensive car insurance policy-

Vandalism: If it is vandalized or sabotaged, it provides cover for damage to the insured vehicle.

FireIt provides coverage for damage to your car from a fire.

Third-Party Liability: It provides coverage for damage in the event of a collision or accident to a third party's property.

Uninsured and Under-Insured Driver CoverageThis coverage protects you when a careless driver has no insurance or insufficient insurance.

Medical paymentsIt provides medical coverage to the driver and other passengers in the car who have met with the accident.