10 important riders you need to know about Car Insurance

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Car Insurance is the insurance which provide you the financial cover or shield against physical damage and/or bodily injury resulting from traffic collisions, theft of the car and damage to the car from natural and man-made calamities.

Important riders in Car insurance

There are two main types of motor insurance in India – Comprehensive cover and third party liability cover.

Third party covers you against any damage to third party resulting from accident with your vehicle includes death, injury or property damage. The third party cover does not include damage to your own vehicle. It is legally mandatory under the Indian Motor Vehicles Act.

Comprehensive cover on the other hand offers protection to you and to your vehicle and also it covers third party liabilities including damages, accidents, natural calamities and even thefts to your own car.

Apart from this, Insurance providers offer lots of additional rider’s as benefits for extra cover to your car insurance at a little extra cost.

  1. No claim Bonus: This is a type of benefit for those who did not use their claim during the preceding year of claim and according to this policy their premium in the following year will be much lower.
  2. Cashless Repairing: The user should check with insurance company about their tie-ups with the garage and whether these garages are authorized, capable of servicing claims of vehicle.
  3. Comprehensive car Insurance: This is a blanket cover used to include natural occurrences such as “acts of God”, floods, falling trees, vandalism, Hailstorms and the others are covered by comprehensive car insurance.
  4. Third Party Liability : This factor is not concerned with your vehicle rather it covers your legal liability for the damage caused to a third party by you while using your vehicle , damage can be like bodily injury ,death etc.
  5. Roadside Assistance: These includes on road repair of minor breakdowns of vehicles, lock out or lost key assistance or emergency fuel assistance, this facility is provided usually within 25-30 km of breakdown.
  6. Depreciation cover: In this type of assistance you can ask the insurance company to pay you the full value of replaced part at the time of damage.
  7. Personal Accident cover: Personal accident covers you against accidents 24/7 anywhere in the world while you are driving or otherwise. Under this cover you are insured against accidental death and permanent total disablement
  8. Invoice Price cover: If your car got stolen, damage/lost insurance company pays you the depreciated value of the car i.e. IDV or Insured declared value of the car. If you avail Invoice price cover then the insurance company has to pay registration charges, invoice value of the car and road tax on the inured vehicle.
  9. Hydrostatic Lock Cover: Hydrostatic lock cover covers damage to the engine when water enters in it and this is particularly useful for those who live in areas of frequent flooding and high rainfall.
  10. Hospital Cash: This covers daily cash benefit up to certain amount per day for a limited time frame on hospitalization towards treatment and medical needs in case of car accident.

Also always renew your policy before the due date lapse to avoid circumstances such as vehicle inspection and it can cause potential increase in premium.

 

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4 Comments

  1. Blaine Tamayo says

    Great tips, Thanks for sharing this article. I am going to switch my insurance to one company.Well done!

  2. Reena says

    Well written article with all the point cleared. thanks appreciate your effort

  3. Auto Insurance Quest says

    Great points .. Thanks for sharing. good information.. basically those people who plan to get their first Car Insurance.