According to the Motor Vehicles Act, 1988, it is mandatory for every vehicle owner to insure their car/bike with third-party insurance at the least. However, this type of insurance policy is limited to expenses and legal liabilities towards a third party. So, if your vehicle sustains any accidental damages, third-party car insurance won’t cover the losses. Hence, financial experts suggest opting for a comprehensive insurance plan. It provides coverage to third-party losses as well as own damage. Moreover, this motor insurance protects your vehicle against multiple instances like natural calamities, accidents, man-made disasters, and more.
Features and Benefits of Comprehensive Car Insurance
- Coverage for Insured Vehicle
If your car is damaged due to an accident, fire, or self-ignition, your insurance company will cover the financial losses incurred in repairing the vehicle. In fact, this policy covers you if you suffer losses due to theft, strikes, terrorism, riots, etc., as well. You do not have to worry about expenses incurred due to damages caused while in transit via rail, air, road, life or inland waterways.
- Personal Accident Cover
With a comprehensive car insurance plan, you also receive personal accident cover, however for a predetermined amount. Wondering what is a personal accident cover? It is basically a feature that covers the policyholder against permanent/total disability or death due to an accident. Moreover, you can avail this cover for other passengers too for a predetermined amount.
- Wide Network of Garages
When you go for an insurance provider, ensure that they have partnered with garages across India. With these garages, you can enjoy cashless claims. It is a facility that allows you to repair your car without paying a single penny. It also enables you to escape the tedious paperwork involved in making reimbursement claims.
All you need to do here is, inform your insurer about the incident, take your vehicle to the nearest network garage and get it fixed. The garage will get in touch with your insurance company and settle the bill directly. However, to avail this facility, you need to visit a network garage only. Hence, it is imperative to ascertain that your insurer has a wide network of garages.
- Third-Party Liabilities
In case you are involved in an accident caused by your car, a comprehensive car insurance policy comes to your rescue. It covers the damages and losses caused to the third party, their vehicle, and other properties. Additionally, if you face any legal liabilities due to bodily injuries or death of the third party, your comprehensive car insurance policy will help you against them.
- No Claim Bonus
One of the major benefits of having a comprehensive car insurance policy is the no claim bonus (NCB). This bonus enables you to get a discount on premiums at the time of renewal. However, you can avail this reward only if you have had a claim-free policy period.
Things to Consider While Opting for an Insurance Provider
Before buying an online car insurance policy, you must not only read up on the different types of insurance plans but also about the insurance providers in the market. You might have purchased the most lucrative plan, however, you won’t benefit from it if the insurance provider is not known for the following things:
- Quick and hassle-free claim: You do not want to go through complex and daunting steps to make a claim, do you? Hence, ensure that your insurance provider has a streamlined and easy claim process.
- Claim Settlement Ratio: Every insurance company has a claim settlement ratio. It is the division of the number of claims settled by the number of claims received. The ideal ratio would be anything greater than 93%.
Now that you know the features and benefits of car insurance policies, be sure to do your research before buying a plan. Make note of your insurance needs and compare multiple plans online.