Even the most careful driver cannot control the way others drive. Unfortunately, car accidents are a common sight on Indian roads. Right from reckless driving to bad weather, there are many factors that result in car accidents. A car accident not just poses a threat to a person’s well-being but can also severely damage his car. In case of an accident, other people on the road are also at risk. One of the easiest ways to reduce the risks posed by car accidents is to buy a good car insurance policy.
Car Insurance- Meaning and Types
In simple terms, a car insurance policy is an insurance policy that protects car owners from any type of financial loss resulting from damage or theft of vehicle. It provides financial protection to the car owner in case of an accident. Car insurance policies can be classified into two categories- third party cover and comprehensive cover.
Third party car insurance offered by a four wheeler insurance company covers only the damages caused to the third party. Comprehensive car insurance, on the other hand, provides third party cover and also includes any damages to policyholder’s vehicle. These damages can be caused by an accident, theft, earthquake and other factors. It is mandatory for every car owner to have at least third party car insurance.
Important Things to Know about Car Insurance
- Car insurance premiums depend on several factors such as age of the person, occupation, claim history etc. The companies charge lower premiums from people belonging to middle-age groups as they are considered more responsible drivers.
- The age of the vehicle should be taken into consideration while choosing a car insurance policy. For a brand new car, it is best to opt for a comprehensive car insurance policy with add-on covers.
- With add-on covers, a policyholder can extend the coverage of car insurance. For example, a car insurance buyer can opt for zero depreciation cover. In this type of cover, the depreciation of the car is not taken into consideration while calculating claim.
- Most insurance companies offer no-claim discounts to their customers. A policy holder who doesn’t make any claim during the policy period becomes eligible for no-claim discount. This discount can be availed while renewing the policy.
- Cashless car insurance policies are considered a better option as these policies make the entire claim process cashless. At the time of repairs, the policyholder doesn’t have to pay the repair amount, and the amount is directly paid by the insurance company.
These days, one of the easiest ways to purchase car insurance is to buy it online. Most of the reputed car insurance companies offer four wheeler insurance online. One of the major benefits of buying four wheeler insurance online is that you’re able to compare the quotes offered by different companies. You can easily find a reliable four wheeler insurance company that offers car insurance online.