Types of Car Insurance Policies in India

The government of India mandates that auto insurance is a necessity for all vehicles on the road. Car insurance can protect the car owner against financial liabilities caused by an unfortunate vehicular accident or theft. New cars come with a standard insurance policy which has to be renewed after one year. A premium amount has to be paid every year to keep the policy active. There are 2 types of car insurance policies in India; third party insurance and comprehensive insurance package. A car owner should choose the one that best serves his or her needs. The cost of car insurance is determined based on the make and model of the car, the year of manufacture, and the geographical location.

Third-Party Insurance: This type of insurance policy covers the damages to a third party in the event of a vehicular accident. As per the law, all vehicles have to have a third-party insurance policy. The insurance premium is calculated based on the cubic capacity of the car engine. The premium is usually lower compared to a full coverage policy.

Comprehensive Insurance Package: This type of insurance policy covers third party liability and damages to the car in the event of a vehicular accident, natural calamity or theft. The premium is calculated based on the insured declared value of the car. The premium amount for this type of policy is usually high.

The premium of a third party insurance will remain the same but in a comprehensive package, the premium amount may reduce over the years due to the depreciation of a particular model of car. For used cars that are over 5 years old, the insurance premium is determined by a mutual agreement between the car owner and the insurance provider.




Choose the Right Car Insurance Policy

At the time of car insurance policy renewal, car owners get the opportunity to change or update their existing insurance policy. Car owners should determine whether they want a full insurance coverage or minimum coverage for their automobile. There are several websites dedicated to compare car insurance quotes. Listed below are some reputable insurance providers in the industry:

TATA AIG offers many add-on covers, has a Green Channel Settlement facility for making easy claims, and comes with an auto-restore warranty. Other features of a TATA AIG car insurance includes cashless claim settlements at TATA garages and free car pick-ups. The policy claims can be settled in 7 days.

ICICI Lombard offers cashless claim settlements in its network garages across the country, a 24/7 roadside assistance cover, and a daily allowance of Rs.500 when the car is in its garage. ICICI Lombard car insurance can be purchased online via EMIs.

L&T offers coverage for alloy wheels, seat covers, air conditioner, music system and other car accessories. It offers Rs.2 lakhs coverage for 5 passengers in the case of a personal accident. The insured will get Rs.500 discount on installation of anti-theft devices. Another feature of L&T’s comprehensive car insurance includes coverage extending beyond the geographical boundary of India.

BAJAJ Allianz has an app called the Insurance Wallet for customers to view and manage their policy documents, locating a nearby network hospital or garage, and initiating a motor claim from anywhere at any time. Another innovative app called the MobiFuel can be used to manage service records and mileage of the car, and receive alerts for refuel and insurance renewal. Bajaj Allianz also offers towing facility and cashless claim settlements in its network garages.

Future Generali offers several add-on covers with its car insurance policies like the lock and key replacement cover and inconvenience allowance cover for when the car is in its network garage.

Car owners should always compare a list of car insurance quotes before choosing a suitable one. You can purchase customized car insurance policies to better suit your needs.