Third Party Or Comprehensive Car Insurance

  • 2 years   ago

There are many factors that influence the car insurance policy. You should assess the insurance requirements of your car and a suitable insurance policy should be purchased to fulfill your needs. As a matter of fact, a third-party car insurance policy is mandatory in India as per the Motor Vehicles Act, 1988. The third-party insurance policy is affordable but it will not cover your car and personal accident. You can buy a comprehensive car insurance plan to cover various kinds of risk factors including the personal accident, offered by FL auto insurance companies.

As there is no dearth of insurance policies in India, buying the right plan is the actual challenge. The policies offered by leading insurers like Tata AIG car insurance is worth your investment. However, the final buying should completely be based on a comparison of various plans.

Features of third-party car insurance plan

  • Low premium –You can buy a third-party car insurance plan at a very low premium.
  • Third-party claims are permitted – It will protect the insured against the third-party damage.
  • Covers bodily injury – If there are bodily injuries caused by the policyholder, it is covered by the insurance policy
  • Covers death – If there is death caused by the policyholder, the insurance company pays the compensation.
  • Property damage – If there is damage to the third-party, the insurance company will cover the damage.

Features of comprehensive car insurance plan

  • High premium – The premium payable towards the comprehensive insurance policy is higher than a third-party car insurance policy.
  • Covers various kinds of risk factors –It is possible to cover various kinds of risk factors with the comprehensive car insurance plan.
  • Covers accidental damage –If there is accidental damage to the self of the third-party, the insurance policy will cover the risk.
  • Compensation for vehicular collision –If there is a vehicular collision with or without the fault of the policyholder, the insurance company will pay compensation.
  • Covers damage due to natural calamities –If there is damage to the vehicle due to natural calamities, the insurance company will pay the compensation. The natural calamities such as fire, flood, and cyclone are covered by the policy.
  • Cover damage to manmade disasters – If there are man made disasters, the insurance policy will cover the risk. The incidents such as theft and vandalism will be covered by the insurance policy.

Add-on covers

You can subscribe to various kinds of add-on covers to enhance the coverage offered by the insurance policy. Some of the add-on options are mentioned below:

  • Zero depreciation cover –While replacing engine spare parts, you will get 100% costs of the spare parts when you are covered by the zero depreciation cover. The rider is available with the comprehensive insurance policy.
  • Roadside assistance – If there is a breakdown of the vehicle due to an accident, the insurance company will offer the roadside assistance. You will get assistance to move the vehicle to the nearest garage.
  • Engine replacement –With the engine replacement cover, you will avoid major financial loss. If there is an entry of water by riding your car in water-logged areas, there will be damage to the engine. The insurance company will cover the damage in a very efficient manner.

How to save money on your car insurance policy?

To save money towards the car insurance policy, you should want to explore online options. You can buy a third party car insurance online from the comforts of your home or office. You can buy a new policy as well as a comprehensive insurance policy online.

  • Online insurance calculator – The online car insurance calculator will help you find out the premium. You can figure out the premium for various insurance products offered by different companies and you can make an informed choice.
  • Price comparison websites – As you go through the price comparison websites, you can settle for the best insurance plan. You should include all the options that are relevant to your car and driving conditions so that there will be maximum protection. You can reduce out of pocket expenses by choosing the most appropriate insurance plan.

Exclusions of an insurance policy

The insurance company will not offer compensation under the following conditions:

  • General wear and tear of the vehicle –If there are general wear and tear of the vehicle, you cannot claim from the insurance company.
  • Electrical breakdown – If the vehicle cannot be moved due to electrical failure, it is not covered by the insurance policy.
  • Mechanical breakdown –If there are mechanical breakdowns, the insurance company is not liable for compensation.
  • Drunken driving – If the driver is under the influence of drugs or alcohol, the insurance coverage is not applicable.
  • Invalid driving license –If the accident takes place with a driver who does not possess a valid driving license, the insurance policy is not applicable.

How to choose the right kind of car insurance plan?

You should choose the right type of car insurance plan as per your needs.

  • Assess your car’s insurance requirements –You should assess your car’s insurance requirements as per the make and model of the car and other factors. For a new and expensive car, you should want to go for a comprehensive car insurance policy. For an old car, you can buy a third-party insurance cover. You can also buy personal accident cover for driver and passengers.
  • IDV – Insured Declared Value (IDV) will play an important role in paying the compensation to the insured. Hence, you should strive to include higher IDV in your insurance policy.
  • Buy online –You can buy an insurance plan online so that you will get a discount on the premium.
  • Compare online quotes –If you compare online quotes from various insurance companies, you can settle for the best policy.
  • NCB – No Claim Bonus (NCB) will be awarded by the insurance company. If you do not claim the policy in the previous year, you will get a discount on the premium.

Conclusion

A car insurance policy is a must to ride on public roads in India. Hence, you should buy at least a third-party car insurance policy to protect the interests of a third-party. If you buy a comprehensive car insurance policy, it will cover you, your vehicle and third-party vehicle, third-party driver and third-party property as well. It is very much important to buy the most appropriate car insurance India policy as per your needs.

Source: Tata AIG car insurance

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