Car insurance is something that everyone who owns a vehicle has to get. However, with the vast number of options and packages available, it can be quite a daunting task to figure out which one to go for. Do you just opt for third party cover or do you go the whole hog and get comprehensive car insurance? In this article, we aim to unravel the mystery of car insurance and how to make the right choices.
Car insurance is mandatory in India as per the Indian Motor Vehicles Act of 1988. It is important because it not only gives financial protection against any damage or loss that occurs to the insured vehicle but also covers any legal or accidental liabilities incurred. The most common types of car insurance available in India are Third Party Cover and Comprehensive Car Insurance.
Third Party Cover, as the name suggests, provides protection only against the damage or loss caused to a third party. It is the basic level of car insurance coverage and is mandated by law. It is cheaper than Comprehensive Car Insurance but offers limited coverage. Any damage or loss to the insured vehicle is not covered under this policy and has to be borne by the owner of the vehicle.
Comprehensive Car Insurance, on the other hand, offers coverage against all eventualities – damage or loss to the insured vehicle, liability towards a third party legal or accidental, personal accident cover for the owner-driver, protection against natural calamities, and theft. It is more expensive than Third Party Cover, but it provides better protection.
When it comes to choosing between the two, it ultimately depends on the individual’s needs and requirements. If you own an older vehicle and want to save money on your premiums, then Third Party Cover may be the better option. However, if you have a new vehicle or have invested a lot of money in a car, then Comprehensive Car Insurance is the better choice for greater peace of mind.
It is important to note that while Third Party Cover is mandatory in India, it only provides limited coverage. Any damage or loss to the insured vehicle has to be borne by the owner, which can be quite a significant expense. In the long run, Comprehensive Car Insurance proves to be a better investment.
When purchasing car insurance, it is crucial to keep in mind the terms and conditions of the policy. Most policies have exclusions and limitations, which may not be immediately apparent. It is important to read through the policy and understand what is included and excluded before making a purchase.
Another important aspect to keep in mind when purchasing car insurance is the no-claims bonus. A no-claims bonus is a reward given to policyholders who have not made a claim during the policy term. It is an important factor to consider when choosing a policy as it can significantly reduce the annual premiums.
It is recommended to compare different car insurance policies and their features before making a purchase. There are several websites, such as the Parivahan site, that offer a comparison of different policies and their premiums. This helps in making an informed decision and ensures that you get the best coverage at the best price.
In addition to Third Party Cover and Comprehensive Car Insurance, there are other types of car insurance available in India. Some of these include Personal Accident Cover, which provides protection in case of an accident leading to permanent disability or death of the owner-driver, and Zero Depreciation Cover, which provides full coverage without any deductions for depreciation.
Conclusion
Car insurance is an essential investment for every vehicle owner in India. Choosing the right policy depends on individual needs and requirements, whether it is Third Party Cover or Comprehensive Car Insurance. It is important to read through the policy and understand the terms and conditions before making a purchase. It is also recommended to compare policies using Parivahan site and opt for additional coverage like no-claims bonus and Personal Accident Cover. With the right research and understanding, car insurance can provide financial protection and peace of mind in the event of any unforeseen circumstances.