Car Insurance
What is Car Insurance?
Car insurance, also referred as Motor or Four-wheeler insurance, is a type of agreement between a car owner and an insurance provider. This contract provides financial protection to the vehicle if the vehicle suffers any damage or loss due to expected events like accidents & natural disasters. A motor insurance holds more significance than just being a piece of paper to keep in the car’s dashboard and show traffic officials when necessary. This insurance policy gives financial protection to the damages of your vehicle caused in an accident or theft. No matter how careful you are while driving, accidents can happen, and repair costs can be substantial. Car insurance policies are of various types. First type is third-party car insurance. This cover protects you from financial damages if your insured vehicle unintentionally damages a third party's vehicle or property or injures a third party. It excludes the damages caused to the insured car. As per the Motor Vehicle Act 1988, it is mandatory for all the cars to have a third-party insurance cover. Second type is the comprehensive car insurance policy. This coverage offers financial protection for your car against damage caused by accidents, theft, fires, and natural events like lightning, storms, floods, and cyclones, as well as man-made damages like vandalism and riots. It also covers third-party insurance. You also have the option to add Personal Accident Cover to your policy to cover any injuries or serious physical damage caused due to accidents. If you’re looking to buy a car insurance & insure your car, Aroon Fintech offers it all. You can choose between 3rd party insurance cover, comprehensive car insurance, and stand-alone damage policy, depending on your budget & car’s specific needs.
Types of Car Insurance
At AroonFintech, you can buy three different types of car insurance policies such as third-party insurance, comprehensive insurance, and standalone own-damage insurance. Scroll through the section below to learn more about these plans:
Comprehensive Car Insurance
This type of insurance policy is the most preferred cover by the car owners. It provides financial support to pay for the damages caused to the own vehicle & the third-party. As the name suggests, this type of insurance provides comprehensive cover. This policy is also applicable to the damages occurred due to natural calamities, man-made disasters, self-ignition or lightning, explosion, fire, theft, etc.
Third-party Car Insurance
Third-party four-wheeler insurance policy is a mandatory requirement for driving a car in India. Under this cover, the insurance company is liable to pay for the injuries, permanent disability, temporary disability, and death of the third party caused by an accident involving the insured car. This plan also provides coverage for property damage incurred by the third party up to Rs. 7.5 Lakh.
Own Damage Car Insurance
In September 2019, the Insurance Regulatory and Development Authority of India (IRDAI) introduced the Standalone Own-Damage car insurance policy. Under this plan, the insured gets insurance coverage only for the damages sustained by their four-wheeler/car in a road accident, natural/man-made calamity, fire, explosion, theft or any other mishap.
Third-party vs Comprehensive Car Insurance
Point of Difference
Definition
Coverage
Legal Requirement
Cost
Exclusions
Add-ons
Comprehensive Car Insurance
A comprehensive car insurance provides complete protection for your car as well as third-party liabilities
It covers the financial loss to the insured car and a third-party
No, this type of policy is not legally required
As it offers more coverage, it is generally costlier
Any damage to the insured car or a third-party is not covered if you are driving under the influence of alcohol or drugs
A number of add-ons can be included in a comprehensive car insurance plan
Third-party Car Insurance
A third-party car insurance provides protection only if a third-party is damaged due to the insured vehicle
It provides financial compensation if there is a damage to a third-party
As per the Motor Vehicles Act of 1988, this type of policy is a mandatory requirement
It is more affordable as compared to a comprehensive car insurance plan
Any damage to the vehicle is not covered
You can include add-ons in a a third-party car insurance
How to Choose Car Insurance Policy Online?
Buying a car insurance policy may become a challenging task if you fail to do proper research. At Aroon Fintech, we understand how important it is for you to buy the right car insurance plan. So, to help you out, we have enlisted some of the tips in which you can buy the best car insurance policy online:
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Check the Different Car Insurance Types: With three different types of four wheeler insurance available, it is crucial to assess your car insurance needs and accordingly finalise the type of policy you need. Choose a third-party cover if you want to stay legally compliant. On the other hand, choose a comprehensive car insurance plan if you want to get complete protection for your vehicle. As AroonFintech offers three different types of car insurance plans, you can easily pick one that best suits your needs and budget.
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Analyse the Car Insurance Premium: The premium of car insurance depends on a number of factors such as IDV, model, fuel type, age, and others, which is why the car insurance premium varies from one insurer to another. Moreover, checking four wheeler insurance premiums also become important to analyse so that you are able to buy a plan that fits your budget. So, it is wise to first compare the car insurance premiums and then make the final decision.
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Check for IDV: IDV or the Insured Declared Value refers to the current market value of your car. As your vehicle suffers wear and tear, then the value of your car decreases. It is the maximum amount that your insurance company will settle in case your car is completely damaged or stolen. The car insurance premium is directly proportional to the IDV, which means that the higher the IDV, the higher will be the four wheeler insurance premium.
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Compare Different Plans: You should compare different car insurance plans online. The comparison makes it easier to pick the best car insurance plan as per your budget and needs. You should analyse the coverage offered under different types of four wheeler insurance plans as doing so will help you make an informed decision in selecting the right car insurance policy for yourself.
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Add-ons: There are a number of add-ons available such as zero depreciation cover, no claim bonus, key loss cover, engine loss cover, and more that help in enhancing the benefits of your car insurance plan even more. So, while buying a car insurance plan, you must include a number of add-ons to get additional coverage. Once you have rightly selected the four wheeler insurance policy, you will be able to get complete protection for your car.
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Availability of Cashless Garages: Cashless garages in car insurance is helpful for policyholders to get their car insurance claims settled in a cashless manner. With the availability of more cashless garages with your insurer, it becomes easier to get cashless repairs in a hassle-free manner. So, always buy a car insurance plan from a company that has tie-ups with a large number of cashless garages.
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Check Claim Settlement Ratio: The claim Settlement Ratio in four wheeler insurance refers to the efficiency of car insurance companies in getting their car insurance claims settled. It thus refers to the percentage of claims settled by the insurer in a year. So, always look for an insurance company that has a simple and swift claim process and check their Claim Settlement Ratio (CSR) before finalising. It is better to buy a plan from a company with high CSR.
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Services Offered: In addition to the claim settlement ratio, you should also check the services offered by your four wheeler insurance company. For instance, you must understand whether the company offers a quick claim settlement, 24*7 service, and other services. You should thus choose a company that offers hassle-free customer service.
Benefits of Buying Car Insurance?
To stay protected against uncertainties that take place on the road, car insurance becomes very important. Some of the reasons why you should have a four wheeler insurance plan are as follows:
Helps You Stay Legally Compliant:
An insurance helps you stay legally compliant as according to Indian Motor Tariff, every car owner is mandatorily required to have at least a third-party policy. The absence of which is punishable with a fine of Rs. 2,000 and/or imprisonment of up to 3 months.
Protection Against Third-Party Liabilities:
A four wheeler insurance policy provides coverage for third-party liabilities such as bodily injuries, temporary/permanent disability, death as well as property damage. You can get third-party coverage in both comprehensive car insurance and third-party car insurance plans. While the compensation for third-party property damage is limited to Rs. 7.5 Lakh, there is no compensation cap in case third-party bodily injuries, disability, or death.
Protection Against Own-Damages:
An insurance policy for your car helps you keep yourself financially secured against the own-damage expenses of your car. Damages incurred in road accidents, natural calamities, man-made disasters, fire, explosion, vandalism, etc are covered under standalone own-damage as well as comprehensive insurance plans.
Coverage Against Theft:
A standalone car insurance policy also provides coverage in case of theft of your car. In case your car gets stolen, your insurance company provides you with your car’s Insured Declared Value (IDV) which corresponds to the market price of your car. In case of theft, with AroonFintech you will also get a quick claim settlement.
Personal Accident Cover:
With a car insurance policy, you can also get a personal accident cover of up to Rs. 15 Lakh. Thus, in case of death due to an accident or if there are any bodily injuries as well as disability of the policyholder in a car accident, then a Personal Accident Cover becomes very important.
Coverage Against Financial Losses:
If there is any kind of damage to your four-wheeler during an accident, natural disaster, vandalism, or any other unfortunate events, then all the financial losses incurred are covered under your four wheeler insurance plan. To get complete protection, it is advisable to buy a Comprehensive four-wheeler Insurance plan.
Financial Coverage Against Natural Calamities:
If there is any damage to your four-wheeler or car due to natural calamities such as earthquakes, floods, storms, or others, then the plan will provide financial coverage in such cases. AroonFintech offers quick claim settlement in such unfortunate circumstances.
No Claim Bonus Benefits:
No Claim Bonus or NCB is a discount given if the policyholder raises no claims in a given year. A maximum discount of 50% is given if you are eligible for NCB, which makes a four wheeler insurance plan all the more affordable.
Key Highlights of Car Insurance Policy
Highlights
Third-Party Cover
Own Damage Cover
Personal Accident Cover
Add-on Covers
Benefits
Coverage for third-party injury and property damage
Covers the damage and loss incurred by the insured four-wheeler
Available up to 15 lakh
Various add-ons are available based on the policy such as zero depreciation cover, return to invoice cover, roadside assistance, etc.
Cashless Claim
Available at the network garages of the insurer
No Claim Bonus
Up to 50%