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What is Car Insurance?

By Finserv MARKETS - Sep 11,2019
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Understanding What Is Car Insurance

Car owners, while driving in a hurry, can be negligent about their safety as well as the safety of other drivers on the road. The rate of car accidents is rapidly increasing due to the lack of security on roads. The Motor Vehicles Act, 1988, has made third-party liability insurance a necessity for every vehicle owner. With car insurance, every individual can protect his/her car from unforeseen events like accidents, natural calamities, and others.

What is a Car Insurance Policy?

Car insurance provides financial security to your four wheeler against the damage or loss that may occur due to natural disasters or man-made calamities. It covers damage caused by unforeseen mishaps like an accident, theft or burglary, and natural calamities like earthquakes, floods, etc. Under the policy coverage is provided to the third-party, the insured, and his/her vehicle. Moreover, the coverage depends on the type of policy opted by the car owner.

Car insurance premium is a major aspect of holding a policy in the long run. However, a policyholder must understand specific factors, which impact the premium amount to be paid. Some of the factors are mentioned below:

  1. Value of the car
  2. Type of coverage
  3. Voluntary excess
  4. Classification of the vehicle

Before purchasing a policy, understand the basics of the plan to reap the maximum benefits. Moreover, identifying its key benefits and features will allow the policyholder to make informed decisions in the future. Here’s everything one must find out about a policy. Take a look below:

What is covered in car insurance?

    1. Natural Calamities

It covers natural calamities like earthquakes, floods, fire, lightning, hurricanes, and so forth.

    2. Man-made Calamities

It offers a coverage for man-made calamities like riots, terrorism, malicious acts, and so on.

    3. Third-party Liability

It protects the owner against third-party liability. In case anything happens to the third person like permanent disability, physical damages or injuries, the insurer covers for it all.

    4. Repair/ Replacement Costs

It provides financial support to the insured to ensure that he doesn’t pay additional repair charges from his pocket.

    5. Self or Rider Coverage

It covers damage that may happen to the vehicle as well as any injury that the policyholder may suffer. Moreover, it offers additional riders to enhance the coverage of the car insurance policy.

To sum up, the selection of a policy is a daunting task due to the availability of multiple options in the market. Before choosing the plan, get an insurance quote. However, car policy available on Finserv MARKETS is a trusted companion for more than 100 million customers across India. Moreover, a policy bought through Finserv MARKETS allows the customers to enjoy cashless services and helps them to renew their insurance policy online.

Also read about what is zero depreciation car insurance to understand if you need this add-on cover.

Finserv MARKETS, from the house of Bajaj Finserv is an exclusive online supermarket for all your personal and financial needs. Loans, Insurance, Investment and exclusive EMI store, all under one roof- anytime, anywhere!

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Bajaj Finserv Direct Limited ("BFDL"), erstwhile Bajaj Financial Holdings Limited is a registered corporate agent of Bajaj Allianz Life Insurance Company Limited and Bajaj Allianz General Insurance Company Limited under the IRDAI composite registration number CA0551 valid till 10-Apr-2021. BFDL also renders services to Bajaj Finance Limited (‘BFL’) and Bajaj Housing Finance Limited (‘BHFL’) (referred hereinafter as ‘Lending Partner’) in sourcing of customers, providing preliminary credit support activities, fulfilment services and post-acquisition customer services related to lending business. Registered Office: Bajaj Auto Limited Complex, Mumbai – Pune Road, Akurdi, Pune – 411 035 CIN: U65923PN2014PLC150522