What is Car Insurance? – Explain, Types, Features, Needs, And More
Car Insurance – Explain
Car Insurance of four-wheeler insurance is an agreement between a car owner and the car insurance provider that offers protection for four-wheelers in the case of financial losses due to unforeseen events like accidents and natural calamities. This contract is often perceived as a piece of paper to be kept in the car’s dashboard and taken out only if the traffic cops ask you for reports.
But that’s not all! This paper financially protects your four-wheeler in case of damage or loss through an accident. When you’re on the road, no matter how careful, there are chances that you might meet with an accident & you can end up with hefty repair bills.
The Other Kinds of Car Insurance
There are different kinds of four-wheelers such as third-party, which protects you from financial implications when the insured car accidentally causes damage to third-party vehicle/property or injuries to a third party or person. This third-party car insurance or liability only covers the policy, and does not cover damages caused to the insured car. As per the Motor Vehicle Act, India must have a valid third-party insurance policy if you want to take your vehicle on the road.
Other Types of Car Insurance
Another type of car insurance policy is a comprehensive car insurance policy that protects not only against any third-party liability but also against any financial damage to the car that may be caused due to accidents, theft, fire & natural disasters such as lightning, storm, flood, cyclone, etc. or damages which are artificial like vandalism, riots, etc. Not only that! You can also avail of a Personal Accident Cover which will cover injuries or, God Forbid, any severe physical damage incurred in an accident!
Tata AIG offers a range of third-party and comprehensive policies online to help you choose the type of coverage and protection your car needs. Fill in your card details and check the quote to find your four-wheeler’s ideal car insurance policy! Once you buy online car insurance, you can select between third-party or comprehensive, or even a stand-alone damage policy, as per your needs. You can further enhance the comprehensive coverage with 13 car insurance add-ons.
Key Features of Car Insurance by TATA AIG
Essential Feature Benefits of Tata AIG Car Insurances
Savings & Affordable Premiums Save up to 75% on car insurance premiums by buying your policy online
Claim Assistance Our 650 claim experts across India ensure an easy and quick claim process for you.”
High Claim Settlement Ratio Our 98% claims settlement ratio as of FY 2020-2021 can assure a high settlement ratio for car insurance claims
Cashless Repairs Our network of over 7500 garages ensures cashless services for your car repairs
Damages to third-party Damages to a third party or third-party property are covered
Own Damage Cover With our Damage cover for your car, we can cover damages from accidents, artificial disasters, and natural disasters
Customizable with Add-ons Up to 13 add-ons to protect your four-wheeler with an all-round car insurance policy
No Claim Bonus Up to 50% discount on car insurance premiums after five consecutive claim-free years
Buy/Renew Car insurance Online Quick renewal of your car insurance with an easy 3-step process with Tata AIG
Car insurance or a four-wheeler policy is necessary to protect your car and you from various situations and scenarios that lead to financial damages. Here are some of the reasons why you need to have a third-party or comprehensive four-wheeler insurance policy
Compliance with the law
According to the Motor Vehicles Act, having a third-party policy is compulsory by law. Therefore, every car plying on Indian roads must be covered by 3rd party. Without a good approach, you could get into trouble with the law and have to pay hefty traffic fines.
Protection from Third-Party Liability
Third-party liability arises when the insured four-wheeler causes accidental damage to a third-party vehicle or property or injuries to a third-party person. Third-party car insurance or even a comprehensive policy covers these third-party liabilities and protects the policyholder of the insured car from financial damages. At Tata AIG, we offer four-wheeler policies with basic and extensive insurance cover to protect you from injuries.
Protection Against Financial Losses
If there is a bump or deep scratch on your car due to an accidental collision or an act of vandalism can lead to financial damages. Here, an Own Damage cover or comprehensive car insurance is helpful. They offer complete protection to the insured vehicle from injuries, theft, accidents, damage due to natural disasters, and more.
Decide Insurance Type
While choosing four-wheeler insurance, you can choose between a basic third-party liability cover and a comprehensive insurance cover. While having a basic third-party insurance cover is a legal compulsion and covers damages caused only to a third-party individual or property, a complete car four-wheeler policy offers more comprehensive coverage that protects against accidental damage. Damages due to loss and theft, natural and artificial disasters, and also provide a personal accident cover. We at TATA AIG also provide varied types such as Comprehensive Policies, Stand Alone Own Damage Car Insurance Policy, and Third-Party Policy. This array of choices lets you find the car insurance type that best suits you and your car’s needs.
Check Policy Coverage
The policy coverage of your car insurance policy will depend mainly on your needs and your budget. Apart from that, your car’s make and model. The area you live in and other factors will affect the policy coverage. When choosing a suitable insurance policy. you can use the Tata AIG calculator to calculate and compare various approaches before making an informed decision.
Availability of Add-ons
While you buy online or renew your policy. You can consider extending or enhancing your policy cover with the help of appropriate add-ons. We offer a set of 13 unique add-ons such as Key Replacement, Return to Invoice. Engine Secure and more that meet various situations outside the scope of your policy. Selecting the appropriate add-ons in your policy can provide all-around protection to your four-wheeler.
check Insured Declared Value
The car’s IDV or Insured Declared Value is its current market value. When calculating your car. the IDV is important as it is the amount your vehicle is insured for. In case of “total loss” – complete damage or theft of the Veh vehicle. The policyholder receives the Insured Declared Value when the claim is settled. Always select the IDV carefully as a lower IDV means insufficient compensation in the event of a total loss. Even though it means lower policy premiums. On the other hand, a higher IDV could mean paying more expensive premiums.
Add-on covers are additional benefits you can add to your car or four-wheeler to enhance the protection offered by your policy. Tata AIG offers 12 such add-ons that you can choose from. The No Claim Bonus or NCB Protection cover enables the policyholder to file. A certain number of car claims during the policy year while retaining the NCB discount. This add-on is helpful if you want to file a claim and protect your NCB discount. However, there is a limit on the number of shares raised with this add-on. The NCB Protection is available only with a comprehensive policy.
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