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Some important things to know about Car insurance in India

Car insurance in India

A valid insurance policy must insure a vehicle. Today, many vehicle owners expect their insurance policy to protect them from all accidents, mostly because they do not read the fine print. That is only partially true, however. In any case, this does not mean that you have a complete financial buffer because you have car insurance. It is crucial to find out which injuries are protected and which are not covered by your policy. Even when it is time to renew your car insurance, you can save money after knowing the details. So, to make things easier:

What is car insurance coverage and what does it cover?

Car insurance provides you with monetary cover for damages to the car, its occupants, or any third party involved after the accident.

It is a contract between the insurance company and you-car owner, which specifies that the company will pay the damages as long as you pay the annual fee, which is called the premium. However, it is essential to learn the terms and conditions because a policy will not cover anything. For example, many plans will protect a vehicle from damage from natural disasters such as hurricanes, earthquakes, while others will take care of human-made accidents such as traffic collisions, vandalism and theft. The insurance policy usually lasts for one year and you are not forced to renew with the same company every time; if you get a plan that suits your needs, then you should switch at the time of renewal.

You should buy two types of car insurance plans –
  • Third-party insurance
  • Comprehensive insurance
Third-party insurance will cover claims for damages made by an external party that has been affected in an accident. For instance, if your vehicle collides with another car, the insurance company will only pay for the damage to the other driver's car. Conversely, claims for injuries received by you and the other party will be covered by a comprehensive policy.
You can easily find the premium quoted by various insurance firms on the internet.

Policies provide additional add-ons. Which people are worth visiting?

Today, all car insurance companies are also offering 'add-on modules' that increase coverage compared to the basic policy. For example, if you add Road Side Assistance to your contract, the insurance company will also pay for a towing vehicle to come and move your damaged vehicle to the nearest garage. Of course, the annual premium you pay goes up with the add-on cover, but in the worst case, some essential things can save you a decent amount.

Engine damagea basic insurance policy does not cover your vehicle against any engine or electrical damage. For example, a motor that is damaged by water ingestion is not protected by standard insurance. Even with the vehicle's electronics and sensors, rainwater will wreak havoc. Looking for an extra cover for engine damage and electrical damage will save you from expensive bills. Then also inquire about the type of damage to be covered and the labor cost.

Zero depreciationThis add-on guarantees that you get a complete claim for replacement parts without reduced their cost on the pretext of depreciation. Therefore the insurance company should reimburse the present market value of the components involved.

Roadside assistanceWe are used to driving safely around the world, but do you wonder what would happen if your car broke down during a weekend vacation in a remote village? Well, you can be prepared for such incidents. With some plans, you can use a taxi fare to the nearest city and, if necessary, stay overnight at the hotel in the event of a significant accident.


  1. Will my auto insurance company give me a payout equal to the full value of my vehicle?

  2. Could my insurance company reject my car insurance claim?

    1. Thanks to this question, many of us are facing this kind of problem. You can find answers to your questions here


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