What is car insurance?

Car insurance isĀ a contract between you and the insurance company that protects you against financial loss in the event of an accident or theft. Ā In India, having third party liability cover on your car Insurance is a must as per law.

What is covered in car insurance?

Car Damage

  • Fire
  • Natural Disasters
  • Manmade Disasters
  • Accidents

Theft & Burglary

Covers for the losses incurred if the car is stolen

Third Party Liability

your legal responsibility to others for bodily injury or property damage

Personal Accident

Personal Accident for Owner/Driver and passengers

What are the different types of car insurance policies?

Private car package policy

It covers not only the costs incurred on damages to a third party but also the damages to your car. This policy type also covers car theft and damages caused by fire, burglary and natural disasters.

Stand-alone own-damage car insurance

If you have an active third party insurance policy of the vehicle, you choose to buy only stand-alone own-damage car insurance. This policy will cover you for any accidental damages to your car. These could be due to natural disasters like earthquake, flood, cyclone, and landslide, or due to manmade disasters like theft, burglary, riot or strike.

Third party car insurance

This policy will cover you against legal liabilities arising out of an accident. If your car causes injuries to a third party or damages surrounding property, then this policy will pay for the expenses. You can still choose Personal Accident covers while buying this policy.

Add-on benefits

You can choose from wide range of add-ons, for an additional premium. These add-ons give you amazing benefits at the time of any claim

Zero depreciation cover

As the car turns older, the value of its parts decreases or depreciates. A Zero Depreciation add-on compensates you even for the depreciation amount, which is not paid if this add-on is not opted for.

Engine protect cover

This cover provides you repair/replacement cost in the event of your engine being damaged by leakage or water ingression, engine failure due hydro-static lock or repeatedly trying to run a moist engine. In these circumstances, Opting for this add-on, can shield you from additional costs during a flood, especially if you live in a rainfall prone region

Roadside assistance cover

This over helps you during breakdown/accident of you vehicle by providing assistance when you are stranded with towing to network garage, battery jumpstart, minor repairs, on-call support and taxi benefits.

Tyre Protect Cover

Tyre damage isn't covered in standard insurance unless the damage takes place during an accident. This cover gives you the benefit to cover for tyre damages such as tyre bursts, bulges or cuts during other situations as well.

Consumable Cover

This cover pays for repair or replacement of nut and bolt, screw, washer, grease, lubricant, clips, A/C gas, bearings, distilled water, engine oil, oil filter, fuel filter, break oil and related parts. These consumables are not covered unless this cover it opted for in a car Insurance policy.

Return to Invoice Cover

In case of theft or damages beyond repair,Ā this cover gives you the benefit of getting back the complete amount of your car's invoice value, including the cost of registering a new vehicle and its road tax respectively.

What is not covered in your car insurance

Loss due to willful negligence

Loss or damage if the driver is under the influence of intoxicating liquor or drugs

Driver not duly licensed at the time of accident

Vehicle is being used outside the scope of limitations like for testing/racing/geographical scope

Loss due to nuclear weapons or radioactivity, war and other related activities

Consequential loss, depreciation, consumables, wear & tear, mechanical & electrical breakdown / failure of breakages - on account of the fault of the manufacturer

What is insured declared value (IDV)?

The sum insured value of the car or Insured Declared Value (IDV) of the car will be the 'Sum Insured,' fixed at the commencement of each policy period for the insured vehicle. The IDV gets depreciated every year basis age wise depreciation chart

What is NO CLAIM BONUS?

No Claim Bonus (NCB) is discount on the Own Damage premium of Car Insurance Policies earned by the owner for having no claim in a previous year. No Claim Bonu can got upto 50% if there is no claim reported for straight 5 years. No claim bonus is transferred to a new car bought by the same owner.

Frequently Asked Questions (FAQs) on Car Insurance

  • Does place of residence affect the premium amount?

    The amount of the premium you pay is determined by the zone you live in. The Indian Motor Tariff Act has specific zones that have a different rating and this affects the amount of premium. The city of registration of the vehicle is what determines the premium in these zones, eventhough the place of use and insurance renewal may be different. For quick reference, here is a general categorization:

    Zone A: Ahmedabad, Bangalore, Chennai, Hyderabad, Kolkata, Mumbai, New Delhi, and Pune. Zone B: Rest of India

  • Does the make/model of a car affect premium amount?
  • What is compulsory excess?
  • Is it possible to pay premium for car insurance in installments?
  • When should I renew my car insurance?
  • How do I change the registration address or vehicle information on the insurance policy?
  • What do I have to keep in mind when I transfer my insurance to the purchaser of my vehicle?
  • What documents do I need to submit at the time of claim?
  • How do I transfer the insurance when I am selling my car?
  • Am I eligible to get NCB on expired policy?
  • What to do if the insured vehicle meets with an accident outside the city, area or state from where the policy is issued?
  • What is break in renewal policy or what is Expired insurance contract ?
  • What to do if the insured vehicle meets with an accident outside the city, area or state from where the policy is issued?
  • Are there any special discounts available for handicapped people?
  • What is break in renewal policy or what is Expired insurance contract ?
  • Why should one have a comprehensive insurance policy when law mandates insurance only for 3rd party injury, death or property loss?
  • What's my liability if someone else is driving my vehicle at the time of accident?
  • What is an endorsement in Car Insurance?
  • Under what circumstances, an endorsement is issued?
  • What are the steps to follow to get an endorsement?
  • What are the important things I should bear in mind while insuring my vehicle?

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5 Reasons to buy from PolicyNation

Accessible

5 mins to buy a policy. Instant accessibility to multiple Insurer through our platform. Payments are made directly to the Insurer

Affordable

Absolute clarity on features of the policies. Don't spend extra on features that you don't need.

Personal Assistance

A change of address, change in policy details, formalities at the time of car being sold, adding new member in your health policy, confused with optimum sum Insured for your life and health policies. So many products, so many companies, the list goes on.

You need someone to listen to you and give you assistance whenever required.

100% Document Back Up

Maintain a backup of all your documents pertaining to your any insurance policy. Scan your Car's Registration Certificate and save it for future reference and also set up your renewal reminder alerts for, so that you can renew on time & avoid policy expiry. You can also take print outs of the scanned documents, whenever you need them.

100% Support During claims

10000+ Network of hospitals
6000+ Garage Network

Whether it is a health claim or motor insurance claim, insurers would need a set of documents to process the claims.

You need someone to advise you on the claims settlement process and assist you with the documents work. You want your claims to be personally handled.

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