Comprehensive Guide to Buying Car Insurance

Comprehensive Guide to Buying Car Insurance

Car Insurance

 Buying a new car is a dream of many people ac have through savings, investments, a car loan, and so on. And then, you take almost care to see that no harm and be safe comes to your car. Well, while there are Various step you may take to ensure your car’s safety, buying car insurance policy top of the list.

But get just any car insurance policy is not enough to you find online; serious business is buying online  car insurance . According to a World Bank report, nearly 10% of all road accident deaths people take place in India country, despite the fact that the country owns only 1% of the world’s vehicles.

This makes it clear how important the safety of your car is that you should be looking only at the top car insurance companies in India.

What is Car Insurane Policy?


All policies claim to cover all expenses caused by accidents. But as it happens, car insurance policies are different from one another in their coverage. Some provide coverage for only the damage or damage to property and exclude third-party expenses such as medical expenses, hospitalisation, etc. On the other hand, some also provide coverage for injury to third parties, but with a higher deductible and no care policy, so as to exclude expenses on their family. So how do you find the perfect car insurance policy?

Different Types of Car Insurance Plans

To help you figure out which insurance company would be right for you, we have prepared a list of different types of car insurance plans. Take a look.

What Type of Car Insurance Policy Should You Have?

First, it is important to know which type of car insurance policy is suitable for your car.

Four types of car insurance policies are offered in India:

Term life insurance
Term Car Insurance
Warrantee insurance
Travel insurance

Insurance agencies selling term life insurance products usually refer to them as Term insurance. They pay your insurance premiums as they accumulate, based on your age, till the time you have purchased your policy.

Term life insurance policies are also called whole life or investment-linked insurance. They carry a lower premium compared to the term insurance. However, they are expensive, and may not cover your full term in case you require hospitalization, hospitalization for mental health and hospitalization for non-accidental events.

The Different Types of Car Insurance Policies
Mostly Three types of car insurance policies in India:

Personal Insurance Policy (PIP) – This is the smallest car insurance policy you could get. It covers only the policy owner and costs the lowest amount of money.

Third Party Insurance Policy (TIP) – This is usually the biggest type of car insurance policy you could get. With a TIP policy, the policy owner can cover the third party who can get a claim if the owner doesn’t. However, this policy is also quite expensive and thus not recommended for everyone.

Third Party Backing Cover- An additional insurance policy which can be bought to supplement the third party and the policy owner's insurance premiums.

Third-Party Liability Coverage

You need to have Third-Party Liability Coverage in the car insurance policy. This policy covers bodily injury and property damage to other persons in your car in the case of an accident. Usually, when you buy a car insurance policy, you are not even aware of what kind of accident coverage it will offer.

However, the policy provides you with a copy of your accidental claim. That is something you want to keep in mind while buying a car insurance policy.

Comprehensive Coverage

Comprehensive coverage is what most people think of, and it is applicable to both cars and bikes. It covers the car as a whole and not just specific parts.

But, is it enough? Well, actually, comprehensive insurance has been around since 1978. But, it did not pick up, until it was rebranded in 2010. Basically, it covers all that you would not want to lose in a crash, like the car itself and its parts.

Comprehensive policies are similar to your home insurance policy, wherein the buyer can choose what he wants to pay.

Understanding Car Insurance Coverage Limits

There are two basic types of car insurance policies in India, namely compulsory and optional. Compulsory insurance, on the other hand, is compulsory for every car.

Collision Coverage

Collision insurance is not just to protect the car’s physical damage, but it also covers the breakdown of vehicle during the accident. Collision insurance is paid by the driver and is valid for a fixed period of time. This covers a replacement cost if the vehicle is used to operate your home or office or as a rental car, which is then stored and returned.

However, it is important to note that the higher the car’s value, the lower the premium you will be able to pay. Many companies have not adjusted prices on their website, so do not quote any rate you might be paying.

Independent Drivers Policy

Independent driving is a norm in many cities in India and this makes the product expensive. Insurance companies have to discount it because the drivers are self-employed.

Theft or Damage to the Vehicle
Before buying any car insurance, you must make sure you have vehicle theft or damage cover. Having a comprehensive car insurance policy in place means that you are able to claim compensation for damage to your car.

If your car gets burgled, or you claim a dent on your car that your insurance company has to pay for, it is always convenient to have a personal or business insurance in place, in case you or a loved one have to claim compensation.

Health Insurance

Vehicle insurance can be linked to a car’s own health insurance or the health insurance policy of a family member. This means that you are covered if you get hurt in the event of any accident that occurs during your car journey or while driving.

Personal Injury Protection
This kind of car insurance policy protects you against any injury, property damage, or death that may occur due to your reckless driving. It is the most comprehensive insurance policy you can have and covers medical care, court fee, legal fees, and your personal and family expenses in the event of an accident.

Most of the car insurance policies out there provide accidental death as an accidental death cover too, and that is what makes it a necessary coverage. In case you have a child and you go with a youth car insurance, you will receive a cover of up to Rs 15 lakh for accidental death and up to Rs 4 lakh for accidental death of your child.

Uninsured/Underinsured Motorist Coverage
For a typical accident (collision or slip), you would get a settlement. But when you are at fault, you can get a lesser settlement than the accident would cost. If you are at fault and the vehicle is uninsured or underinsured at the time of an accident, you can claim up to your out-of-pocket expense. This compensation comes under Uninsured Motorist Coverage (UMC).

Motorist Discount

Insurers also give a discount if you have a credit rating. However, this discount varies for each company, making it hard to compare quotes. If you can prove that you have saved up some extra income in the recent past and have used it to buy a car or lease an older one, you can ask your insure for a discount.

Other Important Features to Look for in a Car Insurance Policy.
No Auto insurance

If you are living in India, this is the most important decision you’ll ever make. The right auto insurance policy can be your life saver or your worst nightmare.

You don’t want to pay a minimum premium, only to be injured badly. A right insurance policy helps you pay your medical expenses in case of an accident. So, make sure you get the right coverage. If you want to know more about car insurance policies, visit this page.

The Cost of Car Insurance.

Car insurance cost depends on the type of car, the amount of coverage you want, and the premium you are willing to pay. Here are some of the cheapest car insurance policies you can get, depending on your budget.