A car insurance policy is a contract between a car owner and an insurance company in which the latter undertakes to protect the rental cars owner against financial losses that may arise from an unfortunate event with his car. Depending on the policy chosen, there are mainly three types of car insurance: third-party auto insurance, stand-alone comprehensive insurance (OD), and fully comprehensive insurance. It is also called vehicle insurance or motor insurance and is financial protection for you and your four-wheeled vehicle against damages due to accidents, theft, and damages to persons or property of third parties.

It also includes personal accident cover to the car’s owner-driver. A car insurance policy is also a cover for your car against damage caused by natural calamities like floods, earthquakes, cyclones, etc. As per the Indian Road, Traffic Rules laid down in the Motor Vehicles Act, 1988, it is mandatory to have insurance cover for your car.

Car Insurance Coverage

The coverage in your auto 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–

Physical Injury

Accidentally injured a third person while driving your car? Don't worry, we'll cover the medical costs.

Death of an Individual

If a person appears to die as a result of an accident involving your car, we will pay for the financial loss.

Damage to the Property

Property damage suffered by a third party as a result of your car is covered under this tariff.

Fully comprehensive insurance goes one step further and covers your car against liability damage (as mentioned above) and against the following damage-

Accidents

Have you had an accident in which your car was damaged? Don't worry, the damage is covered by our motor insurance.

Fire and Explosion If your car catches fire or explodes, we will cover the damage caused.

Theft 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.

Natural/Man-made Calamities Damages from natural disasters like cyclones and hurricanes or man-made perils like riots and strikes will be covered under our comprehensive plan

In-transit Damage If your car gets damaged when being transported via road, rail, air or water, the said damages would be covered by our comprehensive auto 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?

A car insurance or four-wheeler policy is necessary to protect your car and you from various situations and scenarios that lead to financial loss. Here are some of the reasons why you need third-party or comprehensive insurance for your vehicle:

Compliance with the law

Under the Motor Vehicles Act, it is a legal requirement to have motor vehicle liability insurance. Therefore, every car plying on Indian roads must have at least third-party insurance. Without a valid policy, you could fall foul of the law and face hefty fines.

Protection from third-party liability

Third-party liability arises when the insured four-wheeled vehicle causes accidental damage to another person's vehicle or property or injures another person. Third-party motor insurance or even comprehensive motor insurance covers these liability cases and protects the policyholder of the insured vehicle from financial losses. At Tata AIG, we offer four-wheeler insurance policies that provide both basic and comprehensive coverage to protect you from a wide range of damages.

Cover against theft

If your four-wheeler or car parts are stolen, your auto insurance coverage options can cover the financial loss and compensate you for the loss of the car or the replacement or repair of the car parts. In case of total loss (irreparable damage) or theft of your vehicle, Tata AIG will ensure a quick and convenient settlement so that you get the sum insured for your vehicle.

Protection against financial losses

A dent or a deep scratch on your car caused by an accident or vandalism can lead to financial damage. This is where comprehensive or fully comprehensive insurance makes sense, because it offers the insured vehicle comprehensive protection against various types of damage, from theft and accidents to damage caused by natural disasters and more.

Cover against natural calamities

In the event of floods, hurricanes, storms, earthquakes or other natural disasters, your car can suffer significant damage and the scope of repairs can be costly. Your four-wheeler insurance financial plan will help you repair this damage so that your car is safe and in good condition, even in bad weather.

Personal Accident Cover

With a motor insurance, you can avail of accident cover of up to 15 liters as per the guidelines of the Insurance Regulatory and Development Authority of India in case of bodily injury, 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 and offers auto 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

When choosing four-wheel drive insurance, you have the choice between basic liability insurance and fully comprehensive insurance. While basic third-party insurance is required by law and only covers damage caused to a third person or property, fully comprehensive insurance offers more comprehensive protection against accidental damage, damage caused by loss and theft, natural and man-made disasters, and personal accident insurance.

At TATA AIG, we also offer different types of auto insurance, home insurance such as fully comprehensive, standalone comprehensive, and third-party car insurance. With this selection, you can find the auto insurance that best suits you and your car's needs.

Check Policy Coverage

Your car insurance rate cover depends mainly on your needs and budget. The make and model of your vehicle, the region you live in and other factors also influence the insurance cover. When choosing a suitable insurance, you can use the Tata AIG car insurance calculator to calculate and compare car insurance quotes the coverage of different policies before making an informed decision.

Availability of Add-ons

When you take out car insurance online or renew your policy, you can extend or improve your cover with the help of suitable add-ons. We offer a range of 13 unique add-ons, such as key replacement, return on account, engine protection, and more, which apply to various situations outside the scope of your motor insurance. Selecting the appropriate add-ons in your motor insurance policy can provide all-around protection for your vehicle.

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 because it is the amount for which your car is insured. In the event of a "total loss", i.e. complete damage or theft of the vehicle, the policyholder will receive the Insured Declared Value when settling the claim. Always choose the insured value wisely, because a lower insured value means insufficient compensation in the event of a total loss, even if it means lower insurance premiums. On the other hand, a higher IDV could mean that you have to pay higher premiums.

Network of Cashless Garages

If you need to have your car repaired for minor or major damage, you can visit the workshops in your insurance provider's network to have the damage repaired. This way, you can avail of cashless claim settlement, where the insurer pays the cost of the repair directly to the garage, and you don't have to spend exorbitant amounts of money on the repair!

Compare Quotes

With the car insurance calculator, you can easily compare different insurance policies for four-wheelers online. Depending on your budget and requirements, you can select the sum insured and the additional benefits and then compare different tariffs to find the right one to protect your vehicle.

Check Claim Settlement Ratio, review, and service offered

A company's claim settlement ratio is an important factor to consider when purchasing your car insurance. If your insurer's claim settlement ratio is high, it is a sign of a better chance that your claims will be settled on time. The service offered by the insurance company also has a direct impact on customer loyalty and should be checked before you take out a four-wheeler insurance policy with 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. ...

Final word.

Can car insurance be done online?

Online car insurance or auto 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.

What is the meaning of a car insurance quote?

A car insurance quote is the premium estimate for the insurance plan opted by you and the information submitted.

Is the comparison of car insurance quotes free of cost?

At InsuranceDekho you have the opportunity to compare different quotes for car insurance or auto insurance quote from different insurance companies absolutely free of charge. However, when you take out a car insurance policy, you have to pay a premium.

What is the cheapest place to get car insurance?

Among national insurers, USAA has the cheapest rates at $36 per month; State Farm is second at $44 per month. The cheapest local company is Farm Bureau at $39 per month.

What is the best website to get car insurance?

What is the best website to buy car insurance? Insurify is the top rated website for comparing auto insurance quote in the US. It has a customer satisfaction rating of 4.8 out of 5 on Shopper Approved and over 3,600 customer reviews. Insurify saves drivers an average of $585 per year in all 50 states.

Is Geico really the cheapest?

Is Geico really the cheapest? The cheapest car/ auto insurance company overall:

Geico Geico is the cheapest major auto insurance company in the nation, according to NerdWallet's most recent analysis of minimum coverage rates. Geico's average annual rate was $354, or about $29 per month.

Does credit score affect car insurance?

A higher credit score decreases your car insurance or auto insurance rate, often significantly, with almost every company and in most states. Getting a quote, however, does not affect your credit. Your credit score is a key part of determining the rate you pay for car insurance.

Why is my car insurance so high?

Common causes of overly expensive auto insurance rates include your age, driving record, credit history, coverage options, what car you drive and where you live. Anything that insurers can link to an increased likelihood that you will be in an accident and file a claim will result in higher car insurance premiums.

Is Progressive insurance Good?

Progressive received an overall satisfaction score of 76 out of 100 by a pool of its customers, in a NerdWallet survey conducted online in July 2021. To put that in perspective, the average score among seven insurers was 79, and the highest was 83.

Do I have to insure all my cars with the same company?

Although no laws prohibit you from purchasing two auto policies from two different companies, an insurer will not allow you to purchase two policies on the same car. If you have an auto accident, filing two claims with two different insurance providers constitutes insurance fraud even with two auto policies..

How do you lower your car insurance?

Here are some ways to save on car insurance

1. Increase your deductible.
2. Check for discounts you qualify for.
3. Compare auto insurance quotes.
4. Maintain a good driving record.
5. Participate in a safe driving program.
6. Take a defensive driving course.
7. Explore payment options.
8. Improve your credit score

Is it illegal to have 2 car insurance policies?

Is it illegal to have two policies on one car? No, doubling up on your car insurance isn't illegal. But if you make a claim from two insurance providers, you can't claim for the full amount from each of them. Doing so is considered fraud, which is illegal and can land you with a criminal record.