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Owning a car is a significant investment, and protecting it against unforeseen risks is crucial. Car Insurance provides financial coverage against accidents, theft, natural calamities, and third-party liabilities, ensuring peace of mind for vehicle owners.

What is Car Insurance?

Car insurance is a contract between the vehicle owner and the insurance company, where the insurer provides financial protection against damages or losses incurred due to accidents, theft, fire, natural calamities, or third-party liabilities.
As per the Motor Vehicles Act, 1988, it is mandatory to have at least a Third-Party Liability Insurance policy to drive legally in India. However, a Comprehensive Car Insurance Policy provides broader coverage, protecting your vehicle from various risks.
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Who Should Buy Car Insurance?

A well-chosen car insurance policy not only protects your car but also safeguards your finances. Whether you drive a hatchback, sedan, SUV, or a luxury vehicle, selecting the right coverage and add-ons ensures you stay worry-free on the road.
Compare different plans.
Choose add-ons as per your needs.
Drive stress-free with complete protection.

Types of Car Insurance Policies

1. Third-Party Car Insurance (Mandatory)
Covers damages and injuries caused to third parties.
Legal requirement as per Indian law.
No coverage for damages to your own vehicle.
2. Comprehensive Car Insurance (Recommended)
Covers third-party liabilities and own vehicle damages.
Includes protection against accidents, theft, fire, and natural disasters.
Offers additional coverage through optional add-ons.
3. Standalone Own Damage Cover
Covers damages to your own car.
Must be purchased with an existing third-party insurance policy.

What Does a Car Insurance Policy Cover?

1. Own Damage (OD) Cover (Covers damages to your own car)
Accidental Damage: Covers repair costs for damages due to road accidents.
Fire & Explosion: Compensation for vehicle damage caused by fire, explosions, or lightning.
2. Comprehensive Car Insurance (Recommended)
Covers third-party liabilities and own vehicle damages.
Includes protection against accidents, theft, fire, and natural disasters.
Offers additional coverage through optional add-ons.
3. Personal Accident Cover for the Owner-Driver (Mandatory as per IRDAI guidelines)
Accidental Death Coverage: Nominee receives a lump sum payout in case of the owner’s demise.
Permanent Disability Cover: Compensation for partial or total disability due to an accident.
4. Cashless Repairs at Network Garages
Get your car repaired at authorized partner garages without paying upfront.
The insurer directly settles the bill with the garage.
Available across thousands of locations in India.

Add-On Covers for Enhanced Protection

1. Zero Depreciation Cover (Bumper-to-Bumper Insurance)

Ensures full claim settlement without depreciation deductions. Covers the full cost of plastic, rubber, fiber, and metal parts. Ideal for new and luxury cars.

2. Return to Invoice Cover

Provides compensation equal to the on-road price of the car in case of total loss or theft. Covers the car’s invoice price, including road tax and registration fees.

3. Engine & Gearbox Protection Cover

Covers engine and gearbox repairs due to water damage, oil leakage, or hydrostatic lock. Essential for cars used in flood-prone regions.

4. Roadside Assistance (RSA) Cover

Provides 24/7 emergency help for car breakdowns. Includes towing, battery jump-start, minor repairs, and fuel delivery.

5. Key Replacement Cover

Covers the cost of lost or stolen car keys. Includes key fob reprogramming and lock replacement.

6. Tyre Protection Cover

Covers expenses for tire damage due to accidents, potholes, or road debris. Includes wheel rim repairs and replacement.

7. Daily Allowance Benefit

Reimburses cab fare or transport costs if your car is under repair.

8. No-Claim Bonus (NCB) Protection

Protects your NCB discount even if you make a claim. Helps you save on renewal premiums. Exclusions: What is NOT Covered in Car Insurance?

How to File a Car Insurance Claim?

1. For Accidental Damages:

1.Inform your insurer immediately.
2.File an FIR if third-party involvement exists.
3.Take photos of the accident site for proof.
4.Submit the claim form and required documents.
5.Get the car repaired at a network garage.
6.The insurer verifies and settles the claim.

2. For Theft Claims:

1.File an FIR at the nearest police station.
2.Inform the insurance company and submit the FIR copy.
3.Provide car registration and policy details.
4.If the car is not recovered, the insurer pays the Insured Declared Value (IDV).

Q: What is car insurance, and why is it important?

A: Car insurance is a financial safety net that covers damages, theft, and third-party liabilities arising from accidents. It is mandatory in India and helps protect you from unexpected expenses due to accidents, legal liabilities, and natural disasters.

Q: What is covered under a comprehensive car insurance policy?
A: A comprehensive car insurance policy provides financial protection against:
•Accidental damages
•Theft and vandalism
•Natural calamities (floods, earthquakes, storms, etc.)
•Fire and explosions
•Third-party liabilities (injury, death, or property damage)
•Personal accident cover for the driver
Some policies may also offer coverage for co-passengers and additional benefits based on selected add-ons.
Q: What are add-ons in car insurance, and which ones should I consider?
A: Add-ons enhance your car insurance policy by providing additional benefits. Some popular add-ons include:
•Zero Depreciation Cover – Ensures full claim settlement without depreciation deductions on car parts.
•Roadside Assistance – Offers emergency towing, fuel delivery, and minor repairs if your car breaks down.
•Engine Protection Cover – Covers damage to the engine due to waterlogging or lubricant leaks.
•Return to Invoice (RTI) – If your car is stolen or totaled, you get the full invoice value instead of just the IDV.
•Consumables Cover – Covers expenses for engine oil, nuts, bolts, brake fluid, and other consumables that are usually excluded.
Q: Can I renew my car insurance after it expires?

A: Yes, but if your policy has expired, your vehicle will have to undergo an inspection, and you may lose your NCB benefits. Driving without valid insurance is also illegal, so it’s best to renew your policy before expiration.

Q: Can I switch my car insurance provider at the time of renewal?

A: Yes, you can switch insurers and carry forward benefits like NCB. Always compare policies and choose one that provides better coverage at a competitive price.