Saturday, May 18, 2024

Types of Car Insurance Plans to Consider In India

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Buying a car is still a dream for many, and when it comes to fulfilling this dream, people prefer to exercise extra caution. They want to take all the steps necessary to protect the vehicle, so it remains in good condition for longer.

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According to law, it is also essential to protect the car under reliable insurance. Car insurance is best defined as a safety net that protects your vehicle against financial losses arising from road accidents. Covering the car under the right four-wheeler insurance keeps the vehicle secure. If you drive an uninsured vehicle on Indian roads, you can be penalised by the relevant authorities.

The market has various car insurance plans, and not every plan is ideal for you and your vehicle. So investing in car insurance can be a lucrative option for car owners. If you’re planning to pick the perfect car insurance out of the many available in the market, this exhaustive guide is here to help you. Generally, the market is full of the following car insurance plans in India:

Third-Party Car Insurance Plans

One of the most basic car insurance plans in the Indian market is the third-party car insurance plan. third-party car insurance protects the policy holder from financial losses caused to third-party individuals and properties arising from road accidents. The only downside of this car insurance plan is it doesn’t cover its own damages. So if you ever met a road accident, your insurer will only cover the financial losses caused to the involved third-party individuals and properties. You will have to bear your own vehicle damages and treatment costs for yourself from your own pocket.

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Collision Damage or Own Damage Car Insurance Plan

No matter how incredibly skilled you are at driving, the chances of encountering a road accident cannot be entirely overlooked. And even if the car gets slightly damaged, the repair cost can disrupt your entire savings budget. But if your vehicle is secured under a collision or own damage coverage, you can claim the repair expenses from the insurer.

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Personal Accident Cover Plan

Just like securing your own vehicle against damages is crucial, securing yourself for medical expenses is also essential. Minor or severe road accidents are terrifying and can account for some serious losses resulting in massive medical bills. So if you drive often, you should consider investing in personal accident cover. If you take third-party insurance, the insurer won’t cover you for treatment costs arising from the accident. But if you invest in personal accident cover, your treatment expenses will be taken care of.

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Comprehensive Car Insurance Plans

A comprehensive plan is the most desirable option of all the available car insurance plans in the market. It covers third-party financial liabilities caused to individuals and properties and its own damages. You will enjoy broad coverage if you secure your car under comprehensive car insurance. Another best part of investing in comprehensive car insurance plans is the available customization. You can upgrade the coverage by buying add-ons you feel are necessary.

Personalised Car Insurance Plan with Riders

Every car is unique, and so are its requirements. It is why an add-on option is made available to people willing to insure their vehicle. The market offers various customisation options, and you can pick one or more to make your car insurance personalised. Even though not all insurance companies offer the same add-on options, you can find the following:

● Zero Depreciation
The car owner is supposed to pay for replacing new spare parts and depreciation, but not with the zero depreciation cover. If you take this add-on option, you can pass these expenses to the insurer.

● Engine Protection
It can come across as a surprise, but not all car insurance plans cover consequential damages. But you can secure it too by taking the engine protection add-on. This add-on will ensure the insurer covers the damages related to leakage of lubricating oil or events of water entering the engine.

● Return to Invoice
No matter how much you try to protect your car, there always remain chances of the vehicle getting destroyed or damaged beyond repair. If you fear such an event happening to your four-wheeler, you should get it insured under the return to invoice cover. This add-on ensures you get the last invoice value of the vehicle as a claim instead of the depreciated value.
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● Consumable Cover
Repairs and fixes of a four-wheeler are tough to work and involve a lot of money. Unfortunately, costs related to nuts, bolts, oil, etc., are used during repairs. If you want your insurer to take care of these expenses, you must invest in car insurance, including a consumable cover.

● Passenger Cover
The passenger cover is an underrated add-on that doesn’t get talked about much. General insurance plans only cover third-party individuals and properties. If you choose a comprehensive plan, you can also get your own damages covered. But none of the two popular plans covers medical costs related to the passengers. If you want to secure the people travelling with you, investing in passenger cover should be your choice.

● Tyre Protection
Tyres are the part of the vehicle that endures intense wear and tear while driving on any road. If tyres get affected, your entire driving experience will be affected. And changing tires costs a lot of money. If you want your insurer to cover tyres as part of your insurance coverage, you must invest in a tyre protection insurance plan.

● Roadside Assistance
Your vehicle can break down at an unexpected time and an unexpected location. It is where roadside assistance add-on from the insurance plan can come to your rescue. Such insurance plans offer many benefits to the policyholder. If you ever get stranded within the defined radius, you can contact the insurer for taxi service, towing help, repair help, etc. Not every insurer offers the same benefits under these plans, so read the terms and conditions carefully.

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Which Car Insurance Policy to Choose?
The market offers the insurance plans covered above. You can choose the car insurance plan that best suits your requirements. If coverage matters over anything else, go ahead with the comprehensive insurance plan. People willing to remain with basic coverage due to budget limitations can stick to third-party car insurance plans. Alternatively, if you have specific demands regarding coverage, you can pick any of the personalised car insurance covers. In the end, the plan should be selected based on precise requirements.

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Mohit Soni
Mohit Soni
NOT A Commander, Director, Editor-In-This/ That, CEO, MD, President, Entrepreneur, etc etc. Just a first employee at Thrust Zone with a team of enthusiasts who love car and motorcycles more than anything else in the world, just like I do. Hashtag blessed

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