Types of Car Insurance Policies In India

There are various types of car insurance coverage in India, each offering different levels of protection to suit your requirements. Let's learn about each type of vehicle insurance in detail to help you find the one that best meets your coverage and needs.

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Why is Car Insurance Important?

A car insurance policy safeguards you and your vehicle from various unforeseen incidents. These include accidents, natural disasters, man-made calamities, theft, fire, etc. It covers any expenses related to your vehicle repair or part replacement. Additionally, car insurance also protects you legally and financially from any liability associated with a third party.

Three Types of Car Insurance Coverage in India

There are 3 types of car insurance coverage in India:

1. Third Party Car Insurance Coverage

   Third party car insurance or liability only policy is the minimum coverage required by motor laws in India. It covers bodily injuries/death and property damages caused to others in an accident involving your insured vehicle.

   The third party car insurance policy pays for hospital bills and treatment of third parties, repairs for their damaged vehicle, and death liabilities.

2. Own Damage Car Insurance Coverage

   A standalone own damage (OD) car insurance policy offers coverage for damages to your own car in an accident. You can opt for the standalone OD insurance along with a third party liability policy to cover damages to your own vehicle.

3. Comprehensive Car Insurance

   Comprehensive car insurance offers the most exhaustive coverage for car owners. It covers both damages to your car and third party liabilities. This type of car insurance policy offers complete protection against financial and legal responsibilities associated with operating a car.

Own Damage vs Comprehensive vs Third Party Car Insurance

The table below shows the coverage offered under different types of car insurance in India:

Types of Car Insurance Add-on Covers

Add-ons in car insurance are additional covers that enhance the protection of your insured car. You can choose among the following types of car insurance add-ons for an extra premium and expand your coverage:

1. Zero Depreciation Cover

   Zero depreciation is an add-on in car insurance that ensures that the cost of depreciation is not deducted during claim settlement. Also called nil depreciation or bumper-to-bumper insurance, this add-on is available for cars up to 10 years old.

2. Engine Protection Cover

   The Engine Protection add-on protects your car's engine against damage from water ingression, oil spill, and electrical or mechanical breakdown. This type of car insurance add-on covers the replacement cost of the car's engine or its parts.

3. Roadside Assistance Cover

   Roadside Assistance in car insurance coverage offers car owners help in case of car breakdowns. Services include flat tyre changes, minor repairs, towing, fuel delivery, key or lock replacement, and battery jumpstarts.

4. Return to Invoice (RTI) Cover

   The RTI cover in a car insurance policy enables vehicle owners to receive the original invoice value of their car in case of total loss or theft.

5. Consumables Cover

   The consumables add-on in four-wheeler insurance covers the replacement cost of items damaged in an accident. These include nuts & bolts, lubricants, washers, engine oil, brake oil, oil filters, and other small parts.

Factors Affecting Car Insurance Premiums

Car insurance premiums are influenced by a variety of factors as mentioned below:

• Type of Car: The make, model, age, and safety features of a car significantly affect the car insurance premium. Generally, high-performance and luxury cars incur higher insurance costs.
• Driving Record: The driving history of the driver is another crucial factor that impacts car insurance premiums. A clean record with no accidents or violations typically results in lower policy premiums.
• Location of Vehicle Registration: The area where you reside is an important consideration for car insurers. Areas with higher rates of accidents and vehicle theft often have higher car insurance premiums.
• Type of Policy: The type of car insurance coverage you choose also impacts your premium amount. A comprehensive plan costs more compared to third party liability insurance.
• Insured Declared Value (IDV): IDV is the current market value of the insured car. The higher the IDV, the higher the car insurance premium.

Benefits of Buying or Renewing Car Insurance Online

When you buy or renew car insurance online from Policybazaar.com, you get the following benefits:

1. Easy Comparison: When you buy online car insurance, you get to compare insurance quotes from multiple insurers, types of car insurance coverage offered, and policy features. So, you can also check the car insurance renewal price based on your car's IDV, No Claim Bonus (NCB), and add-on covers.
2. Instant Policy Issuance: Buying vehicle insurance online doesn't involve any paperwork, and hence you easily & quickly get your car policy.
3. Claim Assistance: If you have bought car insurance from Policybazaar, you can easily raise a self-shot video claim of your insured car through the PB Claim app. Upon doing this, the repair garage will be given the approval to start the repair within just 2 hours.