Understanding the nuances of a car insurance policy can get tricky. From the right amount of sum insured for your car to the insurance jargons to know about, features and benefits to look for and whether or not they will prove beneficial to your vehicle and you – there are a lot of questions that go through one’s mind. To put those queries to rest, here we are addressing some of the most frequently asked questions about car insurance policies.
Why is car insurance important? How does car insurance work?
Car insurance is essential for protection against financial losses due to damages to your vehicle and against third-party liabilities. There are three types of car insurance – third-party liability insurance, own damage insurance, and comprehensive car insurance. A comprehensive car insurance provides all-around security by protecting a vehicle against risks, such as accidents, theft, and natural disasters, as well as third-party liabilities. This ensures peace of mind and also compliance with legal requirements.
Should I pay car insurance monthly or annually?
When it comes to paying for car insurance monthly or annually, budgetary constraints and preferences should be kept in mind. Paying annually often results in savings, as insurers may offer a better deal. However, it may cause a financial burden when an individual prefers monthly instalments. Weigh your options before you determine what best suits you.
How can I convert third-party car insurance into comprehensive insurance?
Convert your third-party car insurance into comprehensive insurance with the following steps:
Log onto the online portal of your insurer, fill in your car’s details, and then select a comprehensive policy.
If required, check and modify the coverage options available (such as insured declared value) and add-ons.
Accept the final terms and conditions and pay. Your insurer may inspect your vehicle before approval.
Can I get car insurance without a licence?
Yes, you can get car insurance without a licence. If someone else is driving your car, it’s essential to have insurance, and you can designate that person as the primary driver. Some insurers may be cautious about offering policies if you do not have a licence, so you might need to shop around. The comprehensive car insurance option is still available, even if you aren’t the one behind the wheel. Please note that owning is a car is okay but driving without a licence and car insurance is against the law in India. So it is advisable to get your driving licence first. Which car insurance is better, comprehensive or third-party?
Comprehensive car insurance usually offers more advantages than third-party insurance for those who want complete protection. This includes liabilities to third parties and damages to your car due to accidents, robbery, natural disasters, and more. While it is more expensive than third-party insurance, the broader coverage and possible additional features make it valuable for most car owners.
How to transfer car insurance from one person to another in India?
To transfer car insurance from one owner to another in India, you must first complete the vehicle ownership transfer by submitting essential documents like Forms 29 and 30, the car’s RC, and a no-objection certificate from the previous owner. Once these are verified, the insurance policy will be transferred to the new owner’s name.
Can I have car insurance from another state?
You can have car insurance from another state if you spend a lot of time in both states or reside in multiple places. However, you will need to follow the insurance and registration laws of each state. Ensure the policy is legal in both states and confirm with your insurance provider whether your coverage extends across states.
What type of insurance is best for my car?
The best car insurance for your vehicle depends on multiple factors such as your use, budget, type of coverage needed, etc. The most popular type of car insurance is comprehensive insurance. This is because it provides the maximum available coverage: protection against third-party liabilities and damages to your own vehicle from an accident or natural calamity, theft, etc. While relatively costlier than third-party insurance, its all-inclusive protection makes it a great choice for total peace of mind when hitting the road.
Is it safe to buy car insurance online?
Yes, buying car insurance online is safe as long as you purchase it from an insurance provider approved by the IRDAI.
Can I cancel my car insurance anytime?
A car insurance policy may be cancelled at any time. Most of the time, it involves contacting your insurer and providing the necessary documents, including proof of sale if you are selling your car.
How is the car insurance premium calculated?
When it comes to comprehensive coverage, the premium charged on car insurance depends on several factors, including the Insured Declared Value of the vehicle, vehicle type, age, cubic capacity of the engine, and geographical zone. The premium consists of three components: third-party liability (mandatory), own damage (optional but recommended), and personal accident cover; one can also opt for add-ons like roadside assistance or engine protection, which will further raise costs. The IRDAI fixes the premium of third-party liability insurance.
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