Private Car Insurance

In India, private car insurance typically falls under two main categories:

1. Third-party Car Insurance: This is the minimum mandatory insurance required by Motor Vehicle Act, 1988 for all car owners. It provides coverage to the third-party in case of any injuries, death, & property damage caused by your car. However, it does not cover damages to your car or injuries to you.

2. Comprehensive Car Insurance: As the name suggests, comprehensive car insurance policy provides coverage for damages to your car due to accidents, theft, fire, natural calamities, etc., in addition to the mandatory third-party coverage. Also, it provides personal accident cover for the driver(owner).

3. Standalone Own Damage Insurance: Standalone Own Damage Insurance type of insurance covers damage to your own vehicle but does not include third-party liability coverage. While it may be cost-effective, it leaves you vulnerable to third-party claims.

What's Included in Private Car Insurance

A comprehensive car insurance policy in India typically includes the following:

1. Third-party Liability Coverage: Coverage for body injury, death, and property damage caused to third parties due to an accident involving your car.

2. Own Damage Coverage: Coverage for damages to your car due to accidents, including collision, overturning, and more.

3. Theft Coverage: Protection against theft or stealing of your car.

4. Natural Calamities: Coverage for damages caused by natural disasters such as floods, earthquakes, storms, etc.

5. Man-made Calamities: Protection against damages caused by riots, strikes, acts of terrorism, and malicious acts.

6. Personal Accident Cover: Coverage for accidental death or disability of the owner-driver of the car.

7. Add-On Covers: Optional covers that can be added to enhance the policy's coverage, such as zero depreciation cover, engine protection, consumable expenses, and more.

What's Excluded in Private Car Insurance

While private car insurance provides comprehensive coverage, certain situations and events are usually excluded from the policy. These exclusions may include:

1. Damages due to normal wear and tear of the car

2. Damages caused if the driver did not have a valid driving license

3. Damages incurred while driving under the alcohol or drug influence

4. Accidents that occur during illegal racing or while the car is being driven at a speed exceeding the permissible limit may not be covered.

5. Any modifications made to the car that are not approved by the insurance company may lead to claim rejection.

6. Normal breakdowns or failures of car parts are not covered; these are usually considered maintenance issues.

Add-On Covers of Private Car Insurance

Add-on covers, also known as riders, can be customized to enhance your car insurance policy. These optional covers offer additional protection and cater to specific needs. Some common add-on covers in private car insurance include:

1. Zero Depreciation Cover: This cover ensures that you receive the full claim amount without considering the depreciation of car parts during repairs.

2. Engine Protection Cover: Provides coverage for damages to the engine and its components, which are often excluded in standard policies.

3. Return to Invoice Cover: In case of a total loss, this cover ensures that you receive the invoice value of your car, including registration and road tax.

4. No Claim Bonus Protection: Helps retain your No Claim Bonus (NCB) even if you make a claim during the policy period.

5. Consumable Expenses Cover: Covers expenses for consumables like nuts and bolts, engine oil, lubricants, etc., that are not usually included in standard policies.

6. Key Replacement Cover: Provides coverage for the cost of replacing lost or stolen car keys.

Benefits of Private Car Insurance

Investing in private car insurance offers several benefits to car owners in India:

1. Financial Security: Insurance provides coverage against unexpected out-of-pocket expenses arising from accidents, theft, or damage to your car.

2. Legal Compliance: It is mandatory under Motor Vehicles Act, 1988 for all the cars to have at least third-party insurance policy.

3. Coverage Flexibility: Comprehensive policies can be customized with various add-on covers to suit your specific needs.

4. Peace of Mind: Knowing that your car is protected against a range of risks allows you to drive with confidence.

5. Personal Accident Cover: Many policies offer personal accident cover for the owner-driver, providing financial support in case of accidental injury or death.

6. No Claim Bonus: Safe driving can earn you a No Claim Bonus, which can significantly reduce your premium.

Factors Affecting Private Car Insurance

Several factors influence the cost and coverage of your private car insurance in India:

1. Car's Age and Make

Newer cars and luxury vehicles generally have higher insurance premiums.

2. Location

Insurance premiums can vary based on your city or region due to factors like traffic density and risk of theft.

3. No Claim Bonus (NCB)

Accumulating NCB by not making claims can lead to significant premium discounts.

4. Add-Ons

Adding optional covers will increase your premium but provide additional protection.

5. Deductibles

Choosing a higher deductible can lower your premium but increases the amount you pay during a claim.

IDV - What is IDV, How to Choose IDV, How is IDV Calculated, Significance of IDV

What is IDV?

Insured Declared Value (IDV) is the maximum sum assured by the insurance company in case of total loss or theft of your vehicle. It represents the current market value of your car.

How to Choose IDV?

While purchasing car insurance, you can choose the IDV within a range specified by the insurer. It's essential to strike a balance between a higher IDV for better coverage and a reasonable premium.

How is IDV Calculated?

IDV is calculated based on the manufacturer's listed selling price and the age of your car. It also considers depreciation.

Significance of IDV

A higher IDV ensures you receive a better payout in case of a total loss or theft, but it also results in a higher premium. Balancing these factors is crucial to get the most out of your car insurance.

Cashless Garages and How to Select an Insurer Based on Cashless Garages

Cashless garages are service centers where you can get your car repaired without paying the repair cost upfront. Instead, the insurance company settles the bill directly with the garage. When selecting an insurer based on cashless garages, consider the following:

Network of Garages: Check if the insurer has a wide network of cashless garages in your area for convenience.

Quality of Service: Research the reputation and quality of service provided by the garages in the insurer's network.

Cashless Process: Understand the claim process at cashless garages to ensure a hassle-free experience.

Tie-Ups: Some insurers have tie-ups with authorized dealerships, which can be beneficial for specific car brands.

How to Buy/Renew Private Car Insurance from InsuranceDekho.com

Buying Private Car Insurance:

1. Visit the Website: Go to InsuranceDekho.com on your web browser.

2. Enter Vehicle Details: Provide details about your car, like vehicle registration number, model, date of purchase, and fuel type.

3. Personal Details: Enter your personal information such as your name, mobile number, etc.

4. Coverage Selection: Choose the type of insurance (third-party or comprehensive) and any desired add-on covers.

5. Compare Policies: InsuranceDekho.com will provide you with a list of insurance policies from various providers. Compare the options based on coverage and premium.

6. Choose Policy: Select the policy that best suits your needs & falls within your budget.

7. Details: Submit the required details for policy issuance - No documents are required

8. Payment: Make the payment online using a secure payment gateway.

Renewing Private Car Insurance

1. Visit the Website: Go to InsuranceDekho.com.

2. Enter Vehicle Details: Provide your car's registration number.

3. Policy Details: Select the expiring policy and provide details like the policy number, expiry date, and insurer's name.

4. Review and Renew: InsuranceDekho.com will provide you with policy renewal options. Review the details and renew your policy online.

How to File a Claim for Private Car Insurance on InsuranceDekho.com

Filing a claim for your private car insurance through InsuranceDekho.com is a straightforward process. Follow these steps:

1. Notify the Insurer: Contact your insurance provider as soon as possible in case of an accident. They will guide you further.

2. Online Claim Initiation: If you are using InsuranceDekho.com, you can start the claim process online. Just log in to your account and go to the claims section.

3. Provide Details: Then, fill in the required details about the incident, including the date, time, place of accidents, and description of the damage or accident.

4. Upload Documents: Upload the necessary documents, such as a insurance policy copy, photographs of the damage, and the FIR (if applicable).

5. Assessment: The insurance company will assess the claim based on the provided information and documents.

6. Inspection: An insurance surveyor may inspect the damaged vehicle to assess the extent of damage.

7. Claim Settlement: Once the assessment is complete, the insurance company will settle the claim amount according to the policy’s terms & conditions.

8. Repair: You can get your car repaired at a network garage affiliated with your insurer, and the repair costs will be directly settled by the insurance company.