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 cover: It 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.
Fire: It 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 Coverage: This coverage protects
you when a careless driver has no insurance or insufficient insurance.
Medical payments: It provides medical
coverage to the driver and other passengers in the car who have met with the
accident.
Comments
Post a Comment