Today various general insurance providers offer different types of four-wheeler insurance plans. So, people can often feel overwhelmed with so many choices and find it difficult to identify the right plan.
However, choosing the best four-wheeler insurance can be easy if you are well aware of different types of insurance plans and how to increase their scope or effectiveness.
Types of Car Insurance
- Third-Party Car Insurance
Third-party vehicle insurance covers the damages caused by the insured vehicle to a third party only. So, it’s also called liability-only insurance. The Motor Vehicles Act of 1988 states that a valid third-party car insurance policy is mandatory to ply your car on Indian roads.
- Own-Damage Vehicle Insurance
Own-damage vehicle insurance covers the damages caused to the insured vehicle involved in an accident per the terms and conditions. The insurance provider determines the car insurance premium based on the vehicle’s age and its Insured Declared Value (IDV).
But if you purchase stand-alone own-damage vehicle insurance, then you’ll have to buy the mandatory third-party insurance separately.
- Personal Accident Policy
Another cover that is mandatory as per the Indian Motor Vehicles Act is the Personal Accident (PA) policy. However, you can skip buying the PA cover if you already own it separately or if you own another car insurance policy that includes this coverage.
- Comprehensive Car Insurance
A comprehensive car insurance cover provides both third-party and own-damage insurance coverage to the insured vehicle. It also includes the personal accident policy, but you can skip it if you own one already. So, it provides the most wholesome insurance protection for the car.
Therefore, comprehensive vehicle insurance is easy to maintain as you can get all sorts of statutory and desired insurance protection in one plan.
Best Car Insurance Covers
Your comprehensive car insurance cover can become even more effective if you pay a little extra premium to include the following vital add-ons.
- 24 x 7 Roadside Assistance
There can be times when your car breaks down in the middle of nowhere. In such a situation, you don’t have to worry if you’ve got roadside assistance cover. This car insurance add-on can provide roadside assistance at any hour. This may include helping you repair a breakdown, towing the vehicle to the nearest garage, or assisting whenever required.
- Tyre Cover
A comprehensive car insurance policy does not cover damages to your tyre unless the damage is caused in an accident. As the name suggests, this add-on cover provides coverage for repairing or replacing a damaged tyre, even if there has been no accident.
- Consumables Cover
If your car is ever involved in an accident, then you may incur various costs like repair or replacement of nuts, bolts, car air conditioner, washer, oil filter, etc. A consumables cover can take care of all these costs saving you from spending a significant amount on your own.
- Engine Protect
By default, your comprehensive policy does not cover your car’s engine. However, events like a short circuit or water interference during floods could damage your car’s engine. This add-on saves you from paying for an expensive engine repair job due to damages caused during any event.
- NCB Protect
No Claim Bonus (NCB) is a type of discount offered in insurance premiums for every claim-free year. This discount keeps increasing for every claim-free year and can go up to 50%. However, filing a claim against your vehicle insurance will bring it down to 0. However, NCB protection ensures that you keep getting NCB benefits even after filing a claim.
While no one likes to get involved in a car accident, it’s wise to have ample insurance coverage. Adequate car insurance can help you cover the losses arising from an accident. So, choose a reliable and reputable insurance provider, include the right add-ons, and you can potentially have the best vehicle insurance coverage for your car and you.
