Four Wheeler Insurance

Car Insurance or motor insurance as commonly referred to, helps to protect the losses you might incur while driving on a busy road. The loss could be a result of an accident or theft. The premium amount of your car insurance is decided on the basis of Insured Declared Value or IDV of the vehicle. A slight change in IDV can make a whole lot of difference to the motor insurance premium. If you raise the IDV, the premium rises and if you lower it down, the premium reduces.

Coverage under Car Insurance

Car insurance is of 3 types – Third Party Liability Coverage, Collision Coverage and Comprehensive Coverage.

• Third Party Liability Coverage

Third Party Car Insurance covers you against any legal liability to a third party resulting when you are at-fault driver. It covers damage/injury caused by you to another person/property. A Third Party Liability cover is legally mandatory in India under the Motor Vehicles Act.

• Collision Coverage

Collision Coverage protects the insured financially against damage to his/her own car. It pays the insured for damage caused by collision. Damage/loss due to theft or vandalism is not included in collision coverage.

• Comprehensive Coverage

A comprehensive package car insurance policy is more extensive and preferred by most people. The coverage includes damage or theft of vehicle, third party legal liability and personal accident cover. The policy coverage can be further extended by opting for add-ons like accessories cover, engine protector, zero depreciation cover, medical expenses, etc.

No Claim Bonus

For every claim free year, the insured is rewarded with a discount on the renewal premium. This discount is No Claim Bonus (NCB). It is cumulative and increases every year. It usually ranges from 10% to 50% and can save substantial amount of money.

Key Benefits of Car Insurance

• Coverage against loss or damage to the insured vehicle
• Coverage against loss or damage to your vehicle caused by accident, theft, fire, explosion, self-ignition, lightning, riots, strikes or act of terrorism, natural calamities
• Coverage against financial liability caused by injury/death of a third party or damage to the property
• Personal accident cover

What is not covered in Car Insurance?

• Loss or damage if a policy is not in force
• Gradual wear and tear of car and its parts
• Loss or damage to vehicle when driven by person without valid driving license
• Loss or damage to vehicle as a result of intoxication due to drugs, alcohol etc.
• Loss or damage to engine as a result of oil leakage
• Loss or damage to vehicle as a result of abuse of car manufacturer’s guidelines