All you need to know about Car Insurances

What are Car Insurances?

Car/Auto/Motor Insurances provide you with safeguarding from natural calamities, unforeseen events, and/or hazards that might damage your car or automobile. Keeping you financially stable from such unsought incidents. The insurance also safeguards third-party liabilities.

Image Source: economictimes

Why do you need them?

The Motor Vehicle Act of 1988 states that it is mandatory for all vehicles to be covered under the pertinent policy before they can set out on the road. It suggests that the vehicle should at least have third-party legal liability insurance if not anything else. Besides this fact the car insurances also cover the following factors that might be beneficial in case of adverse circumstances:

· Accidents

· Damage from natural calamities

· Damage from man-made disasters

· Theft

· Personal accident cover

· Third-party legal liability

Damages and losses due to an accident are covered against any expenses towards repair and/or replacement, while for total damage you will receive the IDV of that car. The devastation of cars due to any natural disasters like tsunami, lightning, floods, etc, or even due to riots, vandalism. In the case of theft also the company provides for the losses. If the driver is hurt/dies during an accident the insurance company also covers those. Further add-ons can be purchased to insure for the co-passengers too. If a person, vehicle, or property gets damaged by your car, you can stay secure under liability issues.

Features of car insurance policy:

· Third-party liability

· Comprehensive car insurance policy/Package policy

· Insured Declared Value (IDV)

· Premium

· Cashless claim

The third-party liability suggests that any injury/damage to any property or person is covered under the insurance but it doesn’t provide for the damage to the car itself. The comprehensive car policy covers the death of the driver and/or the co-passengers.

Image Source: policybazaar

The Insured Declared Value of the car is a value decided from its depreciation rate and can be claimed upon total loss or damage to the car. Premium is basically the base amount that you need to pay for any insurance monthly/quarterly. Companies like Reliance also offer cashless claims at their connected network garages.


There are various add-ons that you can purchase with the insurance as well:

· NCB Bonus

· Nil Depreciation

· Total cover

· Zero depreciation cover

· Return to invoice center

· Tyre-protection cover

· Break-down assistance


Image Source: ecomparemo

Every insurance has different kinds of add-ons provided with it and the scheme-related documents should be read carefully before.

By Mitali


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