Car Insurance

What is Car Insurance?

Car insurance is a policy that offers financial security to your insured car against the expenses arising due to accidents, man-made disasters, natural calamities, and more. Four-wheeler insurance also provides protection against third-party property damages. According to the Motor Vehicles Act of 1988, it is mandatory for every vehicle owner in India to own a third-party insurance cover. Besides, you can also buy/renew a comprehensive insurance plan to get additional benefits.

Different Types of Car Insurance Policies

Now that you have understood the step-by-step process to buy/renew such insurance plans online, let’s move to the next section. Did you know that there are different types of four-wheeler insurance policies in India to choose from? Here are the details:

• Third-Party Car Insurance

A third-party motor vehicle insurance cover is a basic insurance plan. It covers the damage incurred by third-party property or any injuries caused to the victim due to your insured car. Moreover, third party insurance is mandatory as per the Motor Vehicles Act, 1988, and can result in a penalty or imprisonment if you do not have a valid policy. The plan also includes a personal accident cover to protect you against any accidental injury or disability.

• Comprehensive Car Insurance

A comprehensive car insurance plan is an enhanced cover compared to third-party four-wheeler insurance. It includes both the third-party cover and the own damage cover. Although you have to pay a slightly higher premium for a comprehensive plan over a third-party cover, it is worth the investment. Comprehensive car insurance brings together the benefits of third-party coverage, personal accident cover and own damage cover. Any damage due to unfortunate scenarios like natural and man-made calamities or theft is covered under comprehensive insurance.

• Own Damage Cover

The standalone own damage cover provides coverage against any loss or damage resulting to your own four-wheeler. It offers protection against theft, calamities, disasters, and other perils, excluding third-party liabilities. So, if you already have a third-party insurance plan and want to extend your coverage, standalone own damage cover is the way!

Third-Party Vs Standalone OD Cover Vs Comprehensive Car Insurance - Comparison

Compare Car Insurance Plans Offered on Bajaj Markets

Disclaimer: **The premium rates are indicative. The actual premium that you may have to pay may change depending on various factors. Please check the prevailing premium rates before purchasing your car policy.

Key Features of Car Insurance Plans

How to Buy/Renew a Car Insurance Policy Online

Follow these steps to purchase your 4-wheeler insurance policy today:

• Step 1: Navigate to the ‘Car Insurance Premium Calculator’ page.
• Step 2: Enter the required details such as your mobile number, your vehicle’s type, make and model of your insured car, car number, date of registration of your car,  etc. 
• Step 3: Choose the type of insurance policy you want to purchase. You can also choose the add-on covers. 
• Step 4: Fill in your details like your name, email ID, date of birth, residential address, etc. to proceed.
• Step 5: Enter your car’s engine and chassis number.
• Step 6: Enter the details of your previous car insurance policy.
• Step 7: Cross-check all the details you have entered.
• Step 8: Choose a suitable payment facility to safeguard your vehicle with car insurance.

Your policy document will be issued to you shortly!

Benefits of Car Insurance Plans in India

An emergency does not knock on the door before walking into your life. While you may not always be able to avert a mishap, it is always better to be prepared. Therefore, choosing the right car insurance policy is essential. Take your time and browse through different health insurance plans on Bajaj Markets. You can benefit from features like swift claim settlement, tailored insurance plans, extensive coverage, and so much more.

• Get third-party coverage

Despite being careful on the road, you may not always be able to avoid accidents. In case you injure/ cause damage to a third-party individual or property, it becomes your responsibility to compensate for it. Your third-party liability insurance will pay on your behalf.

• Enjoy a comprehensive cover

In an accident whatever damage you suffer, you and your car would be covered if you have a comprehensive car insurance policy. Be it damage due to natural disasters such as floods, earthquakes, landslides, etc or any man-made calamity such as a terrorist attack, vandalism etc. you will be compensated.

• Get rewarded for good driving

Your car insurance policy also offers you a reward when you drive carefully and do not make any claims during a policy year. The reward is given by your insurer in the form of a no claim bonus where you can get up to 50% discount on the upcoming policy premium.

• Customise your coverage

With a comprehensive car insurance policy, you have the option of further enhancing the coverage by including various add-ons. Car insurance companies offer a wide range of add-on options that can further reduce your burden of car repair.

• Enjoy peace of mind

When you know that you have a suitable car insurance policy you can enjoy a sense of security. You get the confidence to drive and enjoy your beloved car. With a solid financial backup plan, you do not have to get bogged down by the fear of damaging your car.

Inclusions & Exclusions of Car Insurance Coverage

Here are the inclusions and exclusions under car insurance policy that you must know before picking one up.

Opt for Car Insurance Add-On Covers

If you wish to enhance the scope of your car insurance plans in India, it is possible to do so with add-on covers. However, note that add-ons are only available with comprehensive motor vehicle policies. There’s no facility to add these benefits to a third-party car policy.

A few add-on covers to combine with your new car insurance plan are as follows:

• Personal Baggage Cover

The personal baggage cover secures the loss or damage caused to your personal belongings during an unfortunate accident. Thus, you can have peace of mind when it comes to your baggage!

• Lock & Key Replacement Cover

Misplacing your car keys or losing them is quite common. However, the replacement cost of car keys as well as the vehicle locks aren’t covered under your policy. You can easily gain coverage with such a key protection add-on while replacing the car keys and locks.

• Roadside Assistance Cover

Experiencing vehicle issues on a trip isn’t on anyone’s itinerary. Without access to a nearby garage, you may get stuck in the middle of nowhere. But you can ensure emergency help for services like urgent fuel delivery, flat tyre repair, cab services, towing, etc., with 24x7 roadside assistance cover!

• Engine Protector Cover

The repair or replacement cost of your four-wheeler’s engine can really leave a dent in your savings. Be worry-free when it comes to engine damage caused due to lubricating oil leakage, water seepage or other issues by opting for this insurance rider.

• NCB Protection Cover

Trying to maintain a claim-free year to avail a No Claim Bonus can be tough, especially if you experience any damage that is beyond your control. The NCB protection cover offers a guaranteed NCB reward by permitting a set number of insurance claims in a single policy year.

• Personal Accident Cover

The compulsory PA cover ensures coverage in the event of accidental death, permanent disabilities, or bodily injuries sustained by the insured car driver.

• Zero Depreciation Cover

With zero depreciation cover, you can put an end to out-of-pocket expenses resulting from incomplete claim payments due to the depreciation rate of your car. Avail the complete claim amount without any deductions owing to vehicle depreciation now!

Factors Affecting Four-wheeler Insurance Premium Amount 

To calculate the car  insurance premium a lot of factors are taken into account. take a look at some of them and understand how how different aspects affect the premium that you pay:

• Engine capacity

The key factor for deciding your premium is your car's engine capacity.  The higher the cubic capacity, the more premium that you would have to pay.

• Your car’s IDV

IDV  refers to the insured declared value of your car.  In simple words IDV stands for the market price of your car.  While it is the insurance company that determines your car’s IDV,  you have a say in finalising it. A car with a higher IDV, will surely demand a higher car insurance premium.

• The coverage that you opt for

It goes without saying that the more coverage you opt for, the more it will cost you. The bare minimum of third party liability insurance is much cheaper than a comprehensive plan because of the limited coverage it offers.

• Add-ons add to the premium

If you add Riders/ add ons to your comprehensive car insurance policy you will also have to pay a higher premium The more add-ons that you opt for, the more money you would have to spend.

• Your car’s age

A new car will be costlier and would have a higher cost of replacement of its spare parts.  On the other hand and old car will have more depreciation. In simple words the older a car the lesser would be its insurance premium and vice versa.

• Your driving habits

The way you drive can also play an important role in the way your insurance premiums are fixed. if you have a history of road accidents you would be covered as a high risk policyholder and you would have to spend more on the car insurance premium. Not just that when you  make too many claims it affects your no claim bonus and thus increases your insurance premium.

• Deductibles

When you buy/renew a car insurance policy you have the choice of choosing a deductible.  A deductible refers to the amount that  you as a policyholder have to pay when a claim is raised. If you choose a higher deductible, your premium amount will decrease.