A car insurance policy protects your and a third-party’s vehicle and life from any damages or caused. Both you and the third-party remains insured against all the financial losses incurred. You have to a pay a nominal premium to avail such insurance plan.
Getting third-party vehicle insurance scheme is mandatory by law regardless of whether it is a personal or commercial vehicle. Most of the leading insurance companies have tie-ups with all major vehicle manufacturers to provide their customers with the best coverage.
On the other hand, you can purchase the car insurance for your car to avoid being burdened from the hefty expenses in case of vehicular mishaps.
Here are the leading features of vehicle insurance policies –
- Type of policies
Insurance companies provide two types of auto insurance policies:
- Third-party car insurance cover
This insurance policy offers limited protection as it only provides coverage against the costs incurred from the damages done by your car to another vehicle, person and property. You can consider availing a third party car insurance policy offered by Bajaj Finserv.
- Comprehensive insurance cover
This is more of full protection that offers coverage against damage to your vehicle, damage caused to another car by your car and the injuries caused to third-party property, vehicle and person.
This car insurance policy is not mandatory by law like the former; however, it is recommended by car insurers for its all-round coverage. Companies like Bajaj Finserv offer comprehensive car insurance policy at affordable premiums.
- Premium payable
The premium paid by a policyholder to an insurance company primary depends on the vehicle’s model and make. However, factors like the policyholder’s age, his/her profession, type of accessories (in any) to the vehicle, and the claim history may also define the premium amount. While these are the most common factors, every insurer has its own set of factors before setting the premium rate.
- Premium discounts
A car insurance company offer discounts on the payable premium. Some of the popular methods of availing discounts are – installing safety devices, choosing high deductibles, and No Claim Bonuses (NCB). An NCB is awarded to a policyholder when he/she does not make any claim in an entire policy year.
- Coverage
Vehicle insurance companies typically provide coverage caused by any natural or human-made disasters and damages incurred in transit.
- Add-ons
Add-on covers significantly extend the scope of your motor insurance policy. Bajaj Finserv offers multiple car insurance add-ons for its customers. Some of the popular add-ons to your car insurance plan:
- Zero depreciation cover
- Engine protection
- No Claim Bonus
- Return to invoice
- Roadside assistance
- Substitute car in case your vehicle is stolen or damaged
- Accidental coverage for passengers
Along with these comprehensive covers, you also get compensation for key replacement and consumables cover.
- Claims
Car insurance companies usually offer two types of claim settlement options – cashless and reimbursement facility.
The former allows a policyholder to get his/her vehicle repaired in any network garage without paying anything. The latter will enable an individual to get the vehicle fixed by paying initially and then applying for full reimbursement of the incurred expenses.
- Insured Declared Value (IDV)
Every vehicle is insured for a certain value which is denoted by IDV. It is the vehicle model’s price minus the depreciation calculated as per the vehicle’s age.
Car insurance policy is highly advisable as it protects your vehicle against damages and mitigates the costs in case of accidents. Use this information in hand and choose a vehicle insurance policy that best suits you driving needs.
