What is Car Insurance?

Car insurance policy is a vital protection for vehicle owners, offering various types of coverage to suit different needs. In India, the primary types of car insurance include Third-Party Liability Insurance, Own Damage Insurance, and Comprehensive Insurance.

1). Third Party Car Insurance

Third-Party Car Insurance or otherwise known as Liability-Only Insurance is the mandatory car insurance policy to have while driving on public roads in India. In this type of car insurance policy, financial liability towards a third party (vehicle, property or individual) caused by an accident by your car is covered.

• Coverage: Mandatory in many countries, this insurance covers damages to third-party vehicles or injuries to third parties.

• Benefits: It is the most basic form of car insurance policy and covers damages done to a third-party in an accident by your car. Also, having a third-party car insurance will make sure you do not receive any traffic fines.

• Limitations: Does not cover damages to the policyholder's vehicle.

2). Own Damage Car insurance

A standalone damage four-wheeler insurance policy covers damages done to your own four-wheeler. It covers any damage done to your car only, in case of an accident, mishap, theft or natural disaster. Damages done to third parties are not covered under this car insurance policy, hence it is generally clubbed with an existing third-party car insurance.

• Coverage: Covers repairs to the policyholder's vehicle in case of an accident.

• Benefits: It is cost effective, you can choose third-party car insurance from different insurers and own-damage four-wheeler insurance from another.

• Limitations: Does not cover third-party liabilities.

3). Comprehensive Car Insurance

This type of four-wheeler insurance covers both, third party and stand alone car insurance. It gives you all round financial protection for your car. You can customize a comprehensive vehicle insurance policy with “add-ons” to further protect your car. It covers any damages done due to theft, fire, natural disasters, accidents or mishaps.

• Coverage: Offers the highest level of protection, covering third-party liabilities, damages to the policyholder's vehicle, theft, and natural disasters.

• Benefits: Provides extensive financial security and peace of mind.

• Limitations: Generally more expensive than third-party insurance.

Here is a comparison of Comprehensive vs Third Party Cover Car Plans

Your car insurance policy covers the following instances:

1. Damages done to policyholder’s vehicle

Any damages done to the policyholder’s vehicle during an accident (Tyres, exterior/interior damage, engine damage, totaled damage, etc) is covered by comprehensive insurance.

2. Damages caused by Natural Calamities

Natural disasters are unpredictable. Any damage done to the policyholder’s vehicle by earthquakes, storms, floods, lightning strikes, etc. are covered by insurance.

3. Damages caused by Man-Made Hazards

Man-made hazards like thefts, vandalism, riots, robberies, fire, explosion, acts of terrorism, etc that lead to car damage are also covered by insurance.

4. Damages done to Third-Party

Liabilities incurred by damages done to a third-party (Person or Property) in an accident caused by the policyholder’s vehicle is covered by automobile insurance.

5. Personal Accident Cover

A Personal Accident (PA) Cover for up to ₹15 lakh is given by the insurer which ensures financial safety of the policyholder for themselves in case of an accident (Damages done to the policyholder in an accident).

Your car insurance policy does not cover the following instances:

1. Depreciation

Comprehensive car insurance does not include cover for general wear and tear of the car.

2. Illegal Driving

If the driver of the vehicle is not fit to drive the car, the insurer is not responsible for any damages. For example:

• Driving Under the Influence (Alcohol, drugs, narcotics)

• Driving without a Valid Driving Licence

• Driving the car for illegal racing or unlawful activities

3. Lapsed Policy

Any loss/damage incurred to the car when the car insurance policy is not in effect is not covered by car insurance.

4. Damage done to Engine and Tyres:

Mechanical breakdowns, or damage done to the engine because of an oil leak are not covered under car insurance policy. Similarly, car insurance policy does not cover damages done to tyres. The only exception to this if the damages are incurred during an accident.

5. Commercial use of Private cars

If a privately owned car is used for commercial activity, then the car insurance policy will be void and not responsible for any damages.

Purchasing car insurance online has made the process seamless and efficient. Here’s what you need to know:

How to Buy Car Insurance Policy Online?

• Visit Coverfox website, and head over to “Insurance > Car Insurance” Tab.

• Enter Vehicle number or Click on “Bought a new car? Click Here”.

• Enter your car details (Make, Model, RTO, etc.).

• Compare different plans shown on the page and select the add-ons that will help you cover additional damages. Choose what fits best for you.

• Upload the necessary documents and make the payment through the secured payment gateway.

• Receive your police instantly.

Documents Required

• Vehicle registration certificate (RC)

• Previous insurance details (if applicable)

• Identity proof (Aadhaar, PAN, or Passport)

• Address proof

You must consider the following factors while buying the right car insurance online:

1. Coverage Scope

Buyers should select coverage that aligns with their specific needs, such as third-party liability, own-damage coverage, or comprehensive insurance. One should also consider the available add-ons before coming to a decision. Add-ons like Personal Accident cover, Zero Depreciation, Roadside Assistance, etc come in handy at the times of need.

2. Premium Rates

Comparing different car insurer’s premium rates before making a decision is a wise choice. You can get car insurance quotes from top insurers in the country through Coverfox.

3. Claim Settlement Ratio

This indicates the percentage of claims settled by the insurer compared to the total claims received. A higher ratio means a greater likelihood of hassle-free claim approvals.

4. Network Garages

The number of garages associated with the insurance company where cashless repairs can be availed. A wider network ensures greater convenience in case of repairs.

5. Customer Reviews and Customer Service

Consider checking customer reviews of the insurer before buying an insurance policy for your car, it can get you unscripted insights about the insurer. Also make sure you have excellent customer service from the insurer side like you get from Coverfox.

6. NCBs and IDV

Having No Claim Bonuses (NCBs) help reduce the insurance premium amounts. Also make sure that you get a suitable IDV for your car, it should be around the market value for your vehicle.

Renewing your four-wheeler insurance on time is important as it ensures continuous coverage. A timely car insurance renewal also helps avoid legal penalties, such as fines for driving without valid insurance. Moreover, it allows you to retain benefits like the No Claim Bonus (NCB), which significantly reduces premium costs. Being proactive about car insurance renewal not only keeps you legally compliant, but also ensures peace of mind while driving.

Grace Period and Consequences of Policy Lapse

Here is the grace period available for car insurance renewal online and consequences of expired car insurance policy.

• Most insurers provide a 30-day grace period.
• If the policy lapses, you lose your NCB, and vehicle inspection may be required.
• Higher premiums might apply upon new car insurance renewal.

Tips for a Hassle-Free Car Insurance Renewal Online

• Set renewal reminders.
• Compare policies for better deals.
• Check for applicable discounts and benefits.

Car insurance renewal online is crucial for staying protected and complying with legal requirements. Here’s why:

• Legal Compliance: Driving without a valid car insurance policy is illegal in India and can result in hefty fines or penalties.

• Uninterrupted Coverage: A lapsed policy leaves you unprotected against financial losses due to accidents, theft, or natural disasters.

• Third-Party Liability: Car insurance policy renewal ensures you meet mandatory third-party liability coverage, safeguarding you from legal issues in case of accidents.

• Avoid Premium Hikes: Renewing car insurance policy on time helps maintain your No Claim Bonus (NCB), reducing your premium cost.

• Comprehensive Protection: Keep your car protected against damages caused by accidents, fire, theft, and other unforeseen events.

• Eligibility for Add-Ons: Car insurance policy renewal is a great time to include or update add-ons like Zero Depreciation Cover or Roadside Assistance.

• Peace of Mind: Timely four-wheeler insurance renewal ensures you're always prepared for unexpected incidents, whether on the road or off it.

• Avoid Policy Lapse: A lapsed four-wheeler insurance policy may require a fresh inspection, leading to additional hassle and costs.

What is New Car Insurance?

A new car insurance policy is specifically designed to protect newly purchased vehicles from unforeseen damages and risks. It provides coverage against manufacturer defects, theft, and accidental damage, ensuring that the car owner does not face financial burdens in the event of an unexpected incident. Additionally, having a valid new car insurance ensures legal compliance and offers financial security, making it a crucial step immediately after purchasing a new vehicle.

How to Get a New Car Insurance?

• Purchase four-wheeler insurance immediately after buying the car.
• Opt for comprehensive coverage for maximum protection.

Importance of Insuring a New Car Immediately

• Driving without insurance is illegal.
• New cars are expensive; repairs can be costly without coverage.

The growth of EVs in the automobile market in India is increasing exponentially. More and more people are shifting towards the more sustainable option – EVs. With this, having an EV car insurance policy is crucial (and mandatory as well). An EV four-wheeler coverage plan additionally protects charging devices, batteries and electric components like motors in the car financially. Most insurers generally provide 100% coverage for the battery (A non EV car insurance typically covers only 50%). Buying electric car insurance is easy and can be done online at Coverfox. Make sure you protect your prized EVs before you head out for the roads.

Types of electric cars that come under electric car insurance plans:

• Battery operated EVs

• Fuel Cell EVs

• Hybrid EVs

• Plug-in Hybrid EVs

Comparing different car insurance policies helps ensure you get the best deal with adequate coverage. By carefully evaluating key aspects like premiums, coverage, add-ons, and claim settlement ratios, you can make an informed decision that suits your needs and budget.

Let’s explore why comparing car insurance policies is essential and how to effectively assess different car insurance plans.

Why Compare Car Insurance Online Before Buying?

• Helps in selecting the most cost-effective plan.
• Ensures the best coverage at a competitive price.

Key Factors to Compare Car Insurance Policy

• Premiums & Deductibles: Understand what you’re paying for.
• Coverage & Exclusions: Look for hidden exclusions.
• Add-On Options: Choose necessary additional covers.
• Network Garages: More garages mean convenient repairs.

Compare Insurance Quotes using Coverfox

You can easily compare insurance premium quotes, deductibles, add-ons, reviews, cashless garages, etc through Coverfox. To check car insurance quotes from different insurers, do the following:

• Head over to Coverfox Car Insurance Page

• Enter your vehicle details and RTO details

• You will be redirected to a page showing different insurers for your four-wheeler insurance where you can compare the premiums prices, their coverage plans, add-ons and check their exclusions.

You can also check the list of different car insurer’s cashless garages through Coverfox:

• Head over to Coverfox website

• Go to the Car Insurance Tab

• Click on Cashless Garages

• You will be redirected to a page where you can click on different insurers to check their network of Cashless Garages.

Check the list of cashless garages by insurer to make car insurance claims hassle-free. Easily locate authorized service centers for quick repairs without any upfront payments. Compare networks across insurers and choose the best coverage for seamless claim settlements.

The best part about getting a car insurance policy online is that the claim process can be done online as well. If you are in an accident, or your vehicle is stolen/damaged, you will need to file for a claim to your car insurance company. The process for filing a claim online is simple, and if you need any help you can contact Coverfox support for the best helping hand in your claim process. Follow these steps to file a claim with your insurer:

• File an FIR (If required)

The very first thing to do after you check for any damages after an accident is to call the police and file an FIR. The same goes for thefts. Preserve this FIR as it will be required while filing your claim.

• Notify Your Insurer

Inform your car insurance company immediately via their website, app, or helpline. Provide details of the incident.

• Log In to Your Account

Access your four-wheeler insurer’s portal or app using your registered credentials.

• Initiate the Claim

Fill out the online claim form with details like date, time, location, and a brief description of the incident. Submit the required documents with the form.

• Inspection and Repairs

Schedule a vehicle inspection or upload photos for assessment. Choose between cashless repairs at a network garage or reimbursement options.

• Track and Settle

Monitor your claim status online. The insurer settles bills directly with the garage for cashless claims or reimburses approved amounts for reimbursement claims.

There are 2 types of Car Insurance Claims available, that include:

• Cashless Claims: Repairs are done at network garages without upfront payment.

• Reimbursement Claims: Pay for repairs and get reimbursed later.

Tips for a Smooth Claim Process

• Keep all documents handy.

• Follow claim procedures properly.

• Choose a network garage for quick claim processing.

In order to file a successful auto insurance claim, you will require the below mentioned documents:

• Car Insurance policy document
• Vehicle Registration Certificate (RC)
• Driver’s licence
• First Information Report (FIR) – mandatory for theft or severe accidents
• Photos of the damaged vehicle or accident site
• Repair invoices and payment receipts (for reimbursement claims).

Once you have bought the car insurance policy online, the policy document will be mailed to your registered email address. There, you can download the car insurance policy document for future references. You can also access your policy document from Coverfox website, by logging in to your registered account using your registered email address or mobile number. Here is a detailed procedure of downloading your four-wheeler insurance policy online through Coverfox or through your Insurer:

1. Visit Coverfox website or your Insurer’s website
2. Login using registered email address or mobile number
3. Go to the “My Policies” Tab
4. Select your desired car insurance policy that you need to download
5. Click on “Download” to save the policy document in a PDF format.

It is easy to find the premium price amount using a Car Insurance Calculator online. Companies calculate car insurance premiums after taking into account various aspects. The basic premium calculation formula is: Insurance Premium = Own Damage Premium (Includes all the factors) - (NCB + Discounts) + Third-party Liability Premium.

Formula for Car’s IDV calculation:

IDV = Car’s Showroom Price + Cost Accessories- Depreciation on Car
Thus, the formula for calculating Own Damage Premium Price is:

OD = Insured Declared Value X [Car Premium as per the insurer)] + [ Optional Benefits] – [NCB/Discount etc.]

If you're looking to understand what your car insurance prices is and what affects car insurance premium prices, check this:

• Car Make, Model & Variant

Luxury and high-performance cars typically attract higher premiums due to expensive repairs and parts.

• Car's Age & IDV

A newer car with a higher Insured Declared Value (IDV) results in a higher premium. Conversely, older cars have lower premiums.

• Location of Registration

Cars registered in metro cities or high-risk zones are subject to higher premiums due to increased theft or accident probabilities.

• Driver's Profile

Younger drivers or those with less experience often face higher premiums as they are considered riskier.

• Policy Type & Add-Ons

Comprehensive policies with add-ons like zero depreciation or engine protection naturally increase premium amounts.

• No Claim Bonus (NCB)

Claim-free years reward you with a discount on your premium, often up to 50% for multiple years.

• Car Usage & Mileage

Commercial use or extensive mileage increases wear and tear, resulting in a higher premium.

• Safety Features

Cars with anti-theft devices or advanced safety systems often qualify for premium discounts.

• Claim History

A clean driving record with minimal claims lowers your premium; a poor record can have the opposite effect.

• Deductibles

Voluntary deductibles reduce your premium but increase your out-of-pocket expenses during claims.

By optimizing some of these factors, you can lower your car insurance price while ensuring comprehensive coverage. Explore your options today and choose the car insurance policy that fits your needs!

While purchasing a car insurance policy, the Insured Declared Value (IDV) is generally 5% of the ex-showroom price of the car. IDV is the maximum amount paid to you as settlement if your car is stolen or completely totaled. There are various factors that influence this value that include:

1. Vehicle’s Age

The age of the vehicle determines the IDV of the car. As the car gets older, its IDV also depreciates. Here is a table showcasing how age affects IDV

2. Model of the Car

IDV is also affected by the model and variant of the car. High–end luxury cars have higher IDV than a regular car. SUVs and Sports cars generally have higher IDV than a regular sedan or a hatchback.

3. Registration City of the Car

IDV is also determined on where the car is registered. For example, Mumbai will have a higher IDV than another town in Maharashtra

4. Depreciation of Car Components

As a car gets old and depreciated, its components also get depreciated. Thus it affects the overall IDV. To avoid this, a zero-depreciation cover add-on is opted. This table showcases how different components depreciate over time.

5. After Market Customizations

After market customisations add to the overall iDV of the car. Make sure to include them while buying insurance to increase the IDV and ensure protection of these extra accessories.

The Insurance Regulatory and Development Authority of India (IRDAI) annually reviews and sets the premium prices for third-party vehicle insurance. Here are the third-party automobile insurance premium rates given by IRDAI

• For Four-Wheelers (Non EVs)

• For EVs

Lowering your car insurance premium doesn’t have to mean compromising on coverage. Follow these tips to save money while staying protected:

• Compare Car Insurance Policies Online

Shop around and compare car insurance quotes from multiple insurers to find the best deal.

• Opt for Higher Deductibles

Agree to pay a higher voluntary deductible to lower your car insurance price.

• Claim No Claim Bonus (NCB)

Maintain a claim-free record to earn discounts of up to 50% on your premium.

• Choose Add-Ons Wisely

Only select add-ons that you truly need, like Zero Depreciation or Engine Protection.

• Install Safety Devices

Anti-theft devices certified by the Automotive Research Association of India (ARAI) can fetch you discounts.

• Bundle Policies

Combine your car insurance policy with other policies like home insurance to get multi-policy discounts.

• Drive Safely

Maintain a clean driving record by avoiding accidents and traffic violations.

• Opt for Long-Term Policies

Multi-year car insurance policy often come with discounted rates.

• Reduce Coverage for Older Cars

For older vehicles, consider dropping comprehensive coverage if the repair cost exceeds the car’s market value.

• Avoid Small Claims

Retain your No Claim Bonus by not filing minor claims and covering small damages out of pocket.

• Choose the Right Car

Premiums are lower for vehicles with smaller engines and those with good safety ratings.

• Review Policy Periodically

Regularly reassess your coverage needs to avoid overpaying for unnecessary features.

Implement these strategies to maximize savings on your car insurance premium without sacrificing essential coverage.

Car insurance is an essential safeguard that protects you from unexpected expenses and liabilities. Whether buying a new car insurance policy online or renewing an existing one, comparing plans and selecting the right coverage ensures a stress-free driving experience. For hassle-free car insurance purchase, renewal, and claim settlement, Coverfox offers an easy-to-use platform with competitive car insurance prices and excellent customer support.