Why Do You Need Car Insurance?

1. Legal Requirement: In India, the Motor Vehicles Act of 1988 mandates that all vehicles must have at least third-party liability insurance. Driving without valid insurance can result in fines and penalties.
2. Protection Against Accidents: Car insurance helps cover the costs of damages or injuries caused to others in an accident. Without insurance, you would be personally liable for these expenses.
3. Coverage for Theft or Natural Disasters: If your car is stolen or damaged due to natural events like floods or storms, comprehensive car insurance can provide financial compensation.
4. Personal Accident Cover: Car insurance policies often include personal accident cover, offering financial support in case of injuries or death resulting from a car accident.
5. No Claim Bonus: If you don’t make any claims during the policy term, you may be eligible for a No Claim Bonus, which can reduce your premium upon renewal.

Points to Consider While Choosing Car Insurance

1. Type of Coverage:
   • Third-Party Insurance: Covers damages or injuries caused to others.
   • Comprehensive Insurance: Includes third-party coverage and also protects your own vehicle against damages, theft, and natural disasters.
2. Add-Ons: Consider additional covers like engine protection, zero depreciation, or roadside assistance to enhance your policy.
3. Insured Declared Value (IDV): The IDV is the maximum amount your insurer will pay in case of total loss. Ensure it’s appropriately set to reflect your car’s current market value.
4. Network of Cashless Garages: Opt for insurers with a wide network of cashless garages to facilitate easy claim settlements.
5. Claim Settlement Ratio: Check the insurer’s claim settlement ratio to assess their reliability in processing claims.

What’s Not Covered Under Car Insurance

• Damages due to driving without a valid license.
• Accidents occurring outside the geographical area of coverage.
• Damages caused by driving under the influence of alcohol or drugs.
• Wear and tear due to regular use.
• Using the vehicle for commercial purposes if it’s insured for private use.
• Damages resulting from racing or speed trials.
• Losses occurring during war or nuclear perils.
• Consumables like nuts, bolts, and lubricants are typically covered only partially.

Tip: Having the right car insurance ensures financial protection against unforeseen events and helps you comply with legal requirements. Always review policy terms and consult with an insurance advisor to choose the best coverage for your needs.