Car Insurance

Motor Insurance or vehicle Insurance is all about protecting against financial losses arising out of vehicle usage. With the multifold rise in usage of four wheelers, motor Insurance is also termed as Car Insurance or Auto Insurance. Auto Insurance is one of the most common types of general insurance products. Car Insurance is mandatory by law and protects you and the people riding in your car from any legal claim or penalty made by a third party. Family members who may drive you car can also be covered through auto insurance.

Car insurance rates have been steadily rising in India over the past few years. Therefore it becomes very important that you get best insurance rates for your car. You can compare car insurance quotes online at policybazaar and can get best deal on your vehicle insurance.

Car insurance (also known as auto or motor insurance) is done to protect your vehicle from unforeseen risks. It basically provides protection against the losses incurred as a result of unavoidable instances. It helps cover against theft, financial loss caused by accidents and any subsequent liabilities. The cover level of Car insurance can be the insured party, the insured vehicle and third parties (car and people). The premium of the insurance is dependent on certain parameters like value of the car, type of coverage, vehicle classification; voluntary excess etc. Car insurance gives confidence to drive peacefully. In emergencies it acts like a boon to the insurance holder.

With so many car insurance companiesvying for customer base in the market, it is quite difficult to make a decision like choosing the right policy and insurer. Figuring out the right insurance policy, fulfilling the requirement and being cost effective can be time consuming. Many a times car insurance may seem complex but having it saves you spending a fortune later. At policybazaar you can compare car insurance quotes online and save up to 40% on your premium.

Types of Motor Insurance:

The word Motor broadly covers a lot of classes of vehicles plying on the roads. These may be two-wheelers like scooters and motorbikes, three-wheelers or four wheelers like private cars, jeeps, buses, trucks, commercial taxis and other vehicles.

Car Insurance
This is the fastest growing segment in the insurance sector as car insurance is mandatory while buying a new car. Major car manufacturers are tying up with leading insurance companies to provide quick insurance to its customers. Car insurance covers loss or damage by accident, fire, lightning, riots, earth quake, hurricane, terrorist attacks, explosion, theft, third party’s claims and damages (like liability for third party injury or death, third party property and liability to paid driver). On payment of appropriate additional premium it covers loss or damage to electrical or electronic accessories and other significant items.
Two Wheelers Insurance
Two wheeler insurance is another type of popular auto insurance in India. It is governed by the Indian Motor Tariff. This insurance provides protection against natural and man made calamities like: fire, rockslide, landslide, storm, hurricane, flood, earthquake, burglary, theft, riots or any damage caused to the vehicle in transit by road, air, inland waterway or rail. Two wheeler insurance provides mandatory personal accident cover of Rs. 1 lakh to the insurer. This accident cover can also be opted for passengers. It also protects against legal liabilities arising due to third party’s injury/death or damage caused to its property.

Commercial Vehicle Insurance
This type of insurance covers all those vehicles which are not used for personal purpose. Trucks, buses, heavy commercial vehicles, light commercial vehicles, multi utility vehicles, agricultural vehicles, ambulances etc are covered under this insurance. The premium is calculated on the basis of the make and model of the commercial vehicle, place of registration, year of manufacture, current showroom price and whether the insurer is individual or corporate. Insurance Companies in collaboration with the automobile manufacturing companies chalk out different kind of easy and less complicated plans for safe and easy insurance policy. HSBC India, New India Assurance, United India Insurance, Bajaj Allianz, ICICI Lombard etc are some of the prominent companies in India which provide commercial vehicle insurance.

What does Car Insurance Cover?

Car insurance or Motor Insurance is mandatory by law. It is a legal requirement to have a minimal level of insurance before driving a car in India. Coverage would differ by product; however following is a list of possible coverages:

1. Bodily injury liability- It covers bodily injury claims of people who get injured in an accident.

2. Property damage liability- It covers property damages to third partiessuch as another person's car.

3. Medical payments- This payment is done to the policy owner and other passengers in the policy owner’s car.

4. Uninsured and underinsured motorist coverage. This coverage protects you when the negligent driver has no insurance or insufficient insurance. In most states, this covers only bodily injury losses, though some states do include property damage losses.

5. Physical damage covers damage to your car in the following instances:

a. Covers losses to your car involved in a collision.
b. Covers non-collision physical damage if your car is damaged in storm or windshield breaks etc.

Car insurance is packaged into different coverage types and is broadly divided into two as discussed below:

1. Comprehensive car insurance policy protects against any loss or damage caused to the vehicle and its insured accessories as a result of natural and man-made calamities. These calamities can be broadly classified as ‘Natural Calamities’ and ‘Man Made Calamities’. Natural calamities include: fire, explosion, lightning, flood, typhoon, hurricane, storm, tempest, inundation, cyclone, hailstorm, frost, landslide, rockslide, fire and shock damage due to earthquake. Man-made calamities include: burglary, housebreaking, theft, riot or strike, accident by external means, malicious act, terrorist activity and damage during travel by road, rail, inland-waterway, or air. This policy also includes personal accident cover, which provides accident cover for the driver of the vehicle while driving. The owner can avail personal accident cover for passengers in the vehicle. Another mandatory feature is the third party legal liability cover. It protects the owner against legal liability arising from an accident causing any permanent injury or death as well as any damage to the property. It also covers for fire and theft provided the vehicles are laid up in a garage and not in active use.

2. Third Party car insurance policy- An insurance policy is between two parties, the insurer and the insured. Therefore, a third party is any person who is neither the insured nor the insurer. Third parties are mainly pedestrians, fare-paying and non fare paying passengers in a vehicle. People in the vehicles like the driver, owner or passengers are also third parties. Fare paying passengers are the people who travel in public transport such as taxis, auto rickshaws and buses. Non-Fare Paying Passengers are the people who are allowed to travel in a vehicle for free. The Third Party car insurance policy covers your legal liability for any compensation to be paid arising from accident caused by your vehicle. It includes liability for death or injury to third parties like pedestrians, occupant of other vehicles, and outsiders other than passengers. Passengers of private vehicles and pillion riders are also considered to be covered. As an owner of the vehicle you are insured against death or injury caused to passengers carried in the vehicle for hire. The liability covered is unlimited in case of death or injury. Damage to third party’s property is usually covered by the insurance policy.