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When it comes to car insurance, knowing what’s in store for you and what’s not, is not an option. It’s mandatory!
Running haplessly behind your car insurer for settling of claims is the last thing on your wish-list!
That is why you must know the nitty-gritty of your car insurance policy.
Car insurance policies differ from one insurer to insurer.
Here's what you need to do
It covers damages incurred to a third party and their property due to an accident caused by your car.
Since only damages to the third-party vehicle are covered, premiums are lower compared to a comprehensive insurance policy!
If you accidentally run your car over someone and injure that person, your insurer is accountable for paying compensation to that person.
If you happen to ram your car into someone’s car or property, your car insurance company is liable to pay that person for those damages.
But what kind of car insurance does one choose? To make things simpler and stress-free,
motor insurance can be broadly classified into two types – third-party car insurance
and comprehensive cars insurance.
Nothing’s perfect. Not even your car insurance plan. But to land with that near-perfect
insurance cover for your car, make sure you know exactly what you are looking for and what you will get.
In short, prioritize your requirements and compare.
Apart from third party liability, you can also claim for damages that occur to your car during an accident.
If you are badly injured due to an accident then your insurer can compensate you, reducing your financial burden.
Nature is unpredictable with floods, earthquakes, landslides, etc. A comprehensive car insurance can financially protect your car in such times.
If your car is stolen, you can file a claim for it. Your insurer will pay an amount equal to the insured declared value mentioned in the car policy.
Apart from theft, your insurance company can cover you from several other man-made disasters including riots, terrorism, strikes and fire.
It’s good to know the factors that are included in your policy. However, do not
miss out on the things that are excluded.
Here's what you need to do
Regular mechanical expenses due to consistent wear and tear
Damages incurred to your car, when driven beyond its limitation of use
Loss and damage caused due to war and nuclear risk
Damages caused due to accident under the influence of alcohol/drugs.
Losses incurred while you were found driving without a valid license at the time of accident
Accidental damages caused while you were using your car for illegal activities
Accidents that are investigated by the insurance company and proven to be fraud or staged.
Do exclusions really differ from one insurer to another?
Exclusion clauses are those circumstances which your car insurance provider won’t entertain. You won’t be able to make a claim on losses or expenses arising due to some situations. Though most of the exclusions are common among many insurance companies, there are few exclusions which differ from insurer-to-insurer.
For example: Losses caused because of you damaging your car with a baseball bat won’t be covered because you put your car at risk. This exclusion of damage caused by self is most commonly followed by all insurance companies.
All insurance companies exclude coverage of damages arising due accidents when racing.
Hence, it is always advisable to check your policy document and read the terms and conditions related to inclusions and exclusions of car insurance before purchasing your policy online.
How does it help to understand what is included and excluded from the car insurance policy?
When you know what is included and excluded from your car insurance policy, you won’t face any problems at the time of claim.
For example: you own a private car that is used for personal reason, but if you use it for reasons other than its purpose (using your privately owned car as a taxi) and if your car meets with an accident, then there are high chances that your claim would be rejected.
Having a better understanding of things that are included and excluded in your policy is essential as it creates better clarity and avoids scope of confusion and misunderstandings even at the time of renewal.
What risks are covered in comprehensive car insurance policy?
Your comprehensive car insurance policy covers third-party liabilities and own damage expenses. This includes expenses arising out of accidents and losses caused due to natural and man-made disasters.
In fact, even theft is covered under your comprehensive car insurance policy.
Under what kind of circumstances, would I not be eligible for claims?
There are several circumstances under which you won’t be eligible for claims. Some of them are: