Car insurance is an agreement between a car owner and an insurance company wherein the latter agrees to protect the car owner from financial losses which may occur due to an unfortunate event involving his/her car. Depending on the chosen policy, car insurance policies are mainly of three types - Third-Party Car Insurance, Standalone Own-Damage (OD) Car Insurance, and Comprehensive Car Insurance. It also known as vehicle insurance or motor insurance, and is a financial security for you and your four-wheeler against any damages due to accidents, theft and third-party person or property.
It also includes personal accident cover to the car’s owner-driver. A car insurance policy is also a safeguard for your car against any damages caused by natural calamities such as floods, earthquakes, cyclones etc. As per the road traffic rules in India are laid down under the Motor Vehicles Act, 1988, it is mandatory to have insurance coverage for your car.
Car Insurance Coverage
The coverage in your car insurance policy depends on the type of policy that you have selected. Third-Party Car Insurance Plans cover the following types of financial liabilities that you might face in a mishap involving your car–
You accidently injured a third person while driving your car? Don’t fret; we cover for the medical expenses
Death of an Individual
If an individual seems to die because of an accident involving your car, we cover for the financial loss.
Damage to the Property
Property damages suffered by a third party due to your car, are covered under this plan.
Comprehensive Car Insurance Plans go a step further and cover your car against third party liabilities (as mentioned above), and against the following -
Suffered an accident that damaged your car? Don’t worry; the damages would be covered under our car insurance plans.
Fire and Explosion
If your car catches fire or explodes, the damages suffered would be covered by us.
Why worry about the theft or loss of your car when we are here to secure you against it. Get compensated for the financial loss suffered if you lose your car to theft.
Damages from natural disasters like cyclones and hurricanes or man-made perils like riots and strikes will be covered under our comprehensive plan
If your car gets damaged when being transported via road, rail, air or water, the said damages would be covered by our comprehensive car insurance plan.
Personal Accident Cover
If you are injured in an accident involving your insured car, the cost of your medical treatments would be borne by us.
Why Do You Need Car Insurance?
Car insurance or a four-wheeler policy is necessary to protect your car and you from various situations and scenarios that lead to financial damages. Here are some of the reasons why you need to have a third-party or comprehensive four-wheeler insurance policy:
Compliance with the law
According to the Motor Vehicles Act, having a third-party car insurance policy is compulsory by law. Therefore, every car plying on Indian roads must be covered at least by 3rd party insurance. Without a valid policy, you could end up getting into trouble with the law and would have to pay hefty traffic fines.
Protection from third-party liability
Third-party liability arises when the insured four-wheeler causes accidental damage to a third-party vehicle or property or injuries to a third-party person. Third-party car insurance or even a comprehensive car insurance policy covers these third-party liabilities and protects the policyholder of the insured car from financial damages. At Tata AIG, we offer four-wheeler insurance policies that come with basic as well as extensive insurance cover to protect you from a host of damages
Cover against theft
If your four-wheeler or the car parts are stolen, then your car insurance policy can cover the financial damages and compensate you for the loss of the car or the replacement or repair of the car parts. In case of total loss (damage beyond repair) or theft of your car, Tata AIG ensures a quick and convenient settlement process to provide you with the sum insured of your car.
Protection against financial losses
If there is a bump or deep scratch on your car due to an accidental collision or an act of vandalism can lead to financial damages. Here, an Own Damage cover or comprehensive car insurance is useful as they offer complete protection to the insured vehicle from various kinds of damages, right from theft and accidents to damage due to natural disaster and more.
Cover against natural calamities
In case of floods, cyclones, storms, earthquakes or other natural calamities, your car can face significant damages and the extent of repairs can get costly. The financial plan provided by your four-wheeler insurance cover helps take care of these damages so that your car is safe and in good condition even in harsh weather.
Personal Accident Cover
With a car insurance policy, you can avail of a personal accident cover of up to ₹15 lakhs, as per guidelines issued by the Insurance Regulatory and Development Authority of India, in the event of bodily injuries, disability or even death of the policyholder or the owner-driver of the vehicle.
What To Consider While Choosing Car Insurance
The process of buying car insurance is simple but takes time and quite a bit of research. Tata AIG understands the importance of having a suitable four wheeler insurance policy and offers car insurance policies that cater to varying individual needs and budgets. Below are some points you should consider when you buy car insurance:
Decide Insurance Type
While choosing four wheeler insurance, you can choose between a basic third party liability cover and a comprehensive insurance cover. While having a basic third-party insurance cover is a legal compulsion and covers damages caused only to a third party individual or property, a comprehensive car four-wheeler policy offers more extensive cover that offers protection against accidental damage, damages due to loss and theft, natural and man-made disasters and also offers a personal accident cover. We at TATA AIG also provide varied types of car insurance such as Comprehensive Car Insurance Policy, Stand Alone Own Damage Car Insurance Policy, and Third Party Car Insurance Policy. This array of choices so that you can find the car insurance type that best suits you and your car’s needs.
Check Policy Coverage
The policy coverage of your car insurance policy will depend mainly on your needs and your budget. Apart from that, your car’s make and model, the area you live in and other factors will affect the policy coverage. While choosing a suitable insurance policy, you can use the Tata AIG car insurance calculator to calculate and compare the coverage of various policies before making an informed decision.
Availability of Add-ons
While you buy car insurance online or renew your policy, you can consider extending or enhancing your policy cover with the help of appropriate add-ons. We offer a set of 13 unique add-ons such as Key Replacement, Return to Invoice, Engine Secure and more, that meet various situations outside the scope of your car insurance policy. A selection of the appropriate add-ons in your car insurance policy can provide an all-round protection to your four wheeler.
Check Insured Declared Value
The IDV or Insured Declared Value of the car is its current market value. When calculating your car insurance, the IDV is important as it is the amount your car is insured for. In case of “total loss” - complete damage or theft of the car - the policyholder receives the Insured Declared Value when the claim is settled. Always select the IDV carefully as a lower IDV means insufficient compensation in the event of total loss, even though it means lower policy premiums. On the other hand, a higher IDV could mean paying more expensive premiums.
Network of Cashless Garages
If you want to repair your car in case of minor or major damages, then you could visit your insurance provider’s network garages to have the damages repaired. By doing so, you can avail of the cashless claims, wherein, the insurer will directly pay the cost of repairs to the garage, and you won’t have to splurge exorbitant amounts on your repairs!
Car Insurance Calculator makes it easy for you to compare different four-wheeler insurance policies online. Depending on your budget and requirements, you can choose the insurance amount, the add-ons and then compare different plans to find the appropriate one to protect your car.
Check Claim Settlement Ratio, review, and service offered
The claim settlement ratio of a company is an important factor to be considered while purchasing your car insurance. If your insurer’s claim settlement ratio is high, it indicates a better chance of your claims being settled on time. Similarly, the service offered by the insurance company directly affects customer loyalty and should be checked before you buy a four-wheeler insurance policy from the company.
How do I get a new car insurance quote?
How to Buy New Car Insurance Policy Online?
Step 1 - Fill your Vehicle's Make, Model, Variant, Registration Date (select new car) & the city you drive in. ...
Step 2 - Choose between a Third-Party Liability Only or a Standard Package (Comprehensive Insurance).
Step 3 - Give us details about your No Claim Bonus earned.
Who normally has the cheapest car insurance?
Among national insurers, USAA has the cheapest rates, at $36 per month, with State Farm in second place, at $44 per month. The cheapest local company is Farm Bureau, at $39 per month.
How do I find the best car insurance?
Know your needs. ...
Compare the plans. ...
Ask about the add-ons. ...
Check the claim process. ...
Know about the claim settlement ratio of the insurer. ...
Never provide any wrong information. ...
Be aware of the policy terms and conditions. ...
Can car insurance be done online?
Online car insurance renewals do not require paperwork. You can simply renew the policy with your policy number provided the coverage has not lapsed. Pay the renewal premium and the renewal would be done.