Auto

What Does Car Insurance Cover?

Car insurance is a type of motor insurance that covers the financial losses incurred in case of accidents or other unfortunate events. This motor insurance cover saves you from third-party liability, which may include damage to third-party vehicle, property, or person.

What Are The Key Benefits Of Buying Car Insurance?

1. Enhanced Financial Protection

Your car insurance will save you from financial burdens occurring from third-party liabilities, natural calamities, man-made calamities, and other strokes of ill luck. If you purchase a liability cover, only then will your car insurance cover online protect you from financial burdens arising due to any third-party person or property damage. However, if you buy a comprehensive package, it will offer third-party damage cover as well as personal damage cover.

2. Cashless Garage Service

Most of the insurance providers now provide cashless garage service, which means that you don’t have to pay the repair amount yourself and then claim reimbursement. You can directly go to the network garage certified by your insurance provider and get cashless repair service. The provider will directly clear your bill and you can clear the remaining amount which is not covered under your car insurance.

3. Personal Accident Cover

Personal accident cover is an essential policy benefit that is generally included in most car insurance policies without any extra premium charges. The cover offers insurance in case of permanent or partial disability and death of the owner of the vehicle/policy. Personal accident cover amount is up to INR 1 lakh or more depending upon your car insurance cover.

4. Towing Facility

In case of an accident or any other related event, if your car is wrecked or damaged severely, the insurance cover offers towing facilities to carry the vehicle to nearby service centres. The incurred amount is included in your insurance cover, and you can receive towing benefits up to a certain cash limit, which is dependent on your policy cover.

5. Add-On Covers

Motor insurance policies have many add-on covers that offer extra protection against financial liabilities. You can avail these add-ons at a minimal increase in premium amount. The add-on covers may include zero depreciation cover, key replacement cover, loss of personal belongings cover, etc.

Inclusions and Exclusions

Inclusions

  • A car insurance will offer financial protection against natural calamities such as landslides, floods, earthquakes, etc.
  • If your car is stolen or damaged due to manmade calamities such as strikes, riots, etc., your insurance provider will offer help as per your policy terms.
  • In case you have purchased a comprehensive package, it will include coverage of your car damage, towing charges, third-party vehicle/property damage, and damage to a third-party person.
  • If you have been injured in a car accident, your car insurance policy will provide financial assistance to you under personal insurance cover.

Exclusions

  • If your policy has expired and you have not renewed it, then your insurance provider will not cover any financial losses after the expiry of policy.
  • Damages incurred as a result of a war, nuclear attacks, hostilities, or invasion will not be covered by the policy.
  • In case of an accident, if the person driving the car is under the influence of alcohol or other intoxicants, the insurance will not cover incurred liabilities.
  • If the vehicle is purchased illegally or you have provided any fraud information to the insurance provider, your insurance cover will invalidate.
  • If the driver was driving the car without a valid driving license or against the Indian traffic laws during an accident, the insurance will not cover any type of financial loss.
  • Consequential losses (such as you are driving the car even after gear oil is leaking) will not be covered in your car insurance plan.

Exclusions That Can Be Included With Add-Ons

1. Wear And Tear Expenses

Wear and tear of your car’s mechanical or electrical parts is not included in your cover. However, with zero depreciation add-on, you can receive coverage for replacing these parts of your car.

2. Roadside Assistance

If your car breaks down due to reasons such as a punctured tyre, no emergency fuel, etc., you can receive 24×7 help with roadside assistance add-on.

3. Pillion Rider or Passenger Cover

Even if your car insurance includes personal accident cover, the passengers of your car are not covered. With passenger cover or extended accident cover, you can include passengers in the insurance coverage.

4. Invoice Cover

In case of theft or damage, your car insurance provider will only offer IDV of the car. However, with invoice cover add-on you can reimburse or receive full amount paid for repair or purchase. This is only applicable for the initial years since the purchase of the car.

Why Is Car Insurance Necessary?

The third-party car insurance or motor insurance is mandatory in India under the Motor Vehicles Act, 1988. You can face a fine, imprisonment, or other legal implications if you don’t have third-party liability cover. Hence, it is best to avoid legal issues and purchase a car insurance online. Online aggregator sites like Coverfox.com provide options to compare the different insurance policies on offer from different companies. Here, you can compare different insurance plans against each other and decide on buying one which suits your interests.