Overview

Car insurance is a type of motor insurance policy that protects the car from any unavoidable hazards that can cause monetary losses. It is a risk-sharing contract between the motor insurance company and the owner of the car where the former promises to pay for the repair / replacement of the car in exchange for a premium. A car insurance policy provides coverage due to any risk or accidents, third party liabilities, theft, man-made disasters, fires, natural hazards, etc. resulting in damage or damage to the car.

About the car insurance

According to the Motor Vehicle Act 1988, it is mandatory for all cars to purchase a four wheeler insurance policy in India. Auto insurance companies compensate for the loss or damage to the insured vehicle and the third party insured. Some of the reasons for buying a new car insurance policy in India are:

• It pays for the loss of a car as a result of a collision, accident, death or natural calamity that would otherwise be required to be paid by the insured
• It pays for hospitalization expenses in case of accident
• It reduces financial and legal losses that may arise from third-party liability or damage
• With zero benefits such as roadside assistance, zero depreciation expenses are further reduced

Also, the premium amount of your car policy is decided on the basis of the insured declared value or IDV of the vehicle. If you increase the IDV, the premium increases and if you decrease it, the premium decreases.

It is important for any policyholder to compare 4-wheeler insurance renewal or car insurance plans before purchasing a new policy. Car insurance can be compared online on service insurance and you can buy a plan that meets your expectations. It may help:

• Get the best car insurance policy from top motor insurance companies
• Quick and easy online car insurance renewal process
• Comprehensive coverage for four wheeler
• A wide range of add-on covers for better protection

Moreover, the premium amount of your car insurance is decided based on the Insured Declared Value or IDV of the vehicle. If you increase the IDV, the premium rises and if you lower it, the premium reduces.

It is important for any policyholder to compare car insurance plans before going for 4-wheeler insurance renewal or buying a new policy. Compare various car insurance plans online on Servzone and buy the one that fulfils your expectations hassle-free:

• Get the best car insurance policy from top Car insurers
• Instant and easy online car insurance renewal process
• Comprehensive coverage for four-wheeler vehicle
• A wide range of Add-on covers for improved protection

Types of Car Insurance

There are three types of car insurance policies that are available in India –

• Comprehensive Car Insurance

  A comprehensive insurance policy provides coverage for third party liability as well as damages caused to your own car. In comparison with third party liability insurance, a comprehensive four wheeler insurance policy offers extensive coverage, more benefits and covers the damages caused to the insured car in case of an accident, collision, theft, etc.

  A comprehensive policy can be further extended by opting for add-ons like accessories cover, engine protector, zero depreciation cover, medical expenses, etc. This type of coverage is the most popular as it offers end-to-end coverage and thus less stress for the policyholder.

• Third Party Car Insurance

  Third party insurance safeguards you from any legal liability due to your own car’s involvement in an accident. Your insurance provider will compensate you for death, disability, injury, or property damage to any third-party. Therefore, you are protected from the financial liability towards the third-party.

  Third-party liability car insurance prices are a mandate in India under the Motor Vehicles Act, 1988.

  Engine Capacity	Third-party Liability Car Insurance Price Effective June 16, 2019 (Rs.)
  Less than 1000 CC	2,072
  More than 1000 CC & less than 1500 CC	3,221
  More than 1500 CC	7,890

• Pay as You Drive Insurance

  Also known as usage-based motor insurance, this insurance policy allows the insured to pay the insurance premiums as per the kilometres driven. This newly introduced product likely to be helpful for those with multiple cars not all of which are used so frequently. As per the IRDA guidelines under the Sandbox project, a few insurers such as Bharti AXA, Bajaj Allianz have started offering Pay As You Drive insurance policy. The policy offers comprehensive coverage for own damage and third-party liability on a pilot basis for a term of one year. The policy seeker will have to declare the distance he/she expects to travel during a policy year and based on that premiums for Pay As You Drive policy will be decided. However, the insurers have come up with 3 slabs for distance covered -Rs 2,500 km, 5,000 km and 7,500 km.

Important Points

• ✶ What is covered - Checkout the inclusions and exclusions of both third party insurance and comprehensive vehicle insurance policy. Only buy third party insurance if you can bear your own damage expenses.
• ✶ Compare Car Insurance Online - Compare car insurance online and select the one that meets most of your financial expectations. You can easily get multiple four wheeler insurance quotes online from the best car insurance companies in India.
• ✶ Incurred Claim Ratio - Higher ICR, indicate satisfied customers and more the chances of your claim being settled.
• ✶ Add-on Covers - It is always recommended to buy a comprehensive car policy with additional benefits like roadside assistance, zero depreciation, flat tyre assistance, etc.

What’s Covered in Car Insurance Policy?

The four wheeler insurance policy covers the following:

• Loss or damage to the insured vehicle.
• Loss or damage to your vehicle caused by accident, theft, fire, explosion, self-ignition, lightning, riots, strikes or act of terrorism, natural calamities.
• Financial liability caused by the injury/death of a third party or damage to the property.
• Personal accidental insurance cover.

Add-On Covers

Add-on covers are the additional covers or protection that you include in your 4 wheeler insurance plan to keep your car safe from any damages or total loss. The add-on covers need to be purchased on payment of an extra premium amount. Following are some of the add-on covers - No Claim Bonus Protection cover, Zero Depreciation cover, Engine Protection cover, Key protection cover, etc.

• ✶ No Claim Bonus Protection Cover

  For every claim-free year, the insured is rewarded with a discount on the renewal premium. This discount is called - No Claim Bonus (NCB). It is cumulative and increases every year. It usually ranges from 10% to 50% and can save a substantial amount of money on the premium payable for your auto insurance.

  Let's take an example if a policyholder doesn't make a claim during the tenure of his auto insurance policy, he becomes eligible for No Claim Bonus, on the basis of which, a certain rebate is offered on the payable premium. With No-claim-bonus protection cover you can retain your NCB even after registering a claim during the policy term. The terms and conditions vary from one insurer to another.

• ✶ Engine Protection Cover

  An engine is one of the most important parts of a car. And engine protection cover compensates the cost of fixing the indirect damages that are caused to the engine due to lubricating oil leakage and water ingression. It covers the Gear Box Parts, Engine Parts, and Differential?Parts.

• ✶ Zero Depreciation Cover

  This additional feature offers compensation even for the depreciating value of your car. With this feature, you will not have to pay for the depreciation value of your vehicle’s parts. It is mostly valid on private cars and is subjected to a specific number of claims during the policy period. Compulsory and voluntary deductibles (as per the case) will be applicable despite zero depreciation cover. You can check with the insurance company for any terms and conditions before making the purchase.

• ✶ Consumables Cover

  Sometimes, a bunch of unforeseen expenses can drain all your savings. Consumables Cover??. Includes all the expenses incurred on consumable items for any perils that are covered under the policy. Consumable items include screws, nuts and bolts, washers, AC gas, grease, lubricants, bearings, clips, engine oil, distilled water, oil filter, brake oil, and fuel filter are mostly covered.

  There are certain terms and conditions that are applicable to this add-on cover that varies from one insurance provider to another. It is mostly valid on private cars and is subjected to a particular number of claims during the policy period. You can check with the insurance company before making the purchase.

• ✶ Key Protection Cover?

  Once in a lifetime everyone would have lost or misplaced their car keys. In such cases, the insurer can offer you the financial help by covering the costs incurred on replacement and repair of your car keys. Here’s was Key Protect Cover?will offers.

  • You will be allowed a certain number of claims during your policy term
  • Any case related to theft or theft should be supported by the police FIR
  • The replaced key will be of the same type as lost or stolen
  • Any broken or damaged keys will be replaced by the insurer
  • In case of displacement or theft of car keys, the insurer will replace the entire set of keys, including the H lockset, after presenting all other keys to the insurer
• ✶ Daily Allowance Benefit?????

  ???In case of accidental damage, you might have to leave your car in the workshop and travel on your own. This add-on cover comes to your rescue when your vehicle is parked in the garage after an accident for repair. If you have this add-on cover the insurer will provide you daily travel allowance if the vehicle requires has to be in the garage for more than 3 days (varies from insurer to another).

• ✶ Personal Accident Rider Benefit

  Personal Accident Rider is an optional add-on benefit that can be added to the comprehensive auto insurance by paying an extra premium. This rider provides the policyholder with the coverage of medical expenses due to damage, personal injury or disability caused due to an accident.

• ✶ Cover for Car Accessories

  By simply opting for separate add-on policy, you can avail the coverage for your car accessories, which a normal 4 wheeler insurance policy may not cover. Such additions may increase the premium, but it is always beneficial and cost-effective rather fitting a new car accessory.

• ✶ Save Through Paying High Deductibles

  Deductibles are a certain percentage of the claim amount that the insured has to pay from this own pockets. A policyholder can save by paying higher deductibles. At the time of filing a claim, if you choose to pay higher deductibles against your claim, your auto insurance provider manages to give you some discount on premium later on.

What’s Not Covered?

Following features are usually not covered in a 4 wheeler insurance policy:

• Loss or damage if a policy is not in force.
• Gradual wear and tear of car and its parts.
• Loss or damage to the vehicle when driven by a person without a valid driving license.
• Loss or damage to the vehicle as a result of intoxication due to drugs, alcohol etc.
• Loss or damage to the engine as a result of oil leakage.
• Loss or damage to the vehicle as a result of abuse of car manufacturer's guidelines.

How to Calculate?

Car insurance price is decided based on several factors. It is also easy to find out the four wheeler insurance premium using an online car insurance calculator. However, the insurance provider takes into consideration the following parameters before fixing the car insurance price:

• IDV (Insured Declared Value) of the vehicle
• Age and Type of Car
• Engine's Cubic Capacity
• Geographical zone

Car's IDV Calculation Formula:

IDV = Car's Showroom price + Accessories cost – depreciation value

Thus, the formula to calculate OD premium amount is:

Own Damage premium calculation formula:

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

How to Renew?

It's mandatory to renew your car insurance to avail of the policy benefits without a break. Therefore, you should ensure your car policy before it gets expired. Follow the steps given below for online car policy renewal:

• Go to the renewal section.
• Enter the details required on the page, such as your policy number, mobile number, date of birth, etc. and submit them
• Choose the 4 wheeler insurance plan that you want to purchase
• Select the riders or add-on covers that you want to buy or drop (if any)
• The premium amount that you need to pay will be shown on the page
• Pay the insurance premium online with the help of a credit card, debit card or through net banking
• Once the payment is complete, your four wheeler insurance policy will be renewed

You will receive the policy document for your renewed 4 wheeler insurance on your registered email id. You can also download a copy of the policy document and get a printout anytime you want.

Benefits for Renewing

A new car insurance policy has a validity period and after its expiry, you need to renew it for keeping your car insured. You can renew your car policy either offline or online. Even though many of us still follow the traditional method of offline renewal of the policy, but opting for online car policy renewal is better. Here are a few benefits of renewing your car policy online:

• ✶ Easy and Quick Process: For renewing your online car policy, all you have to have is good internet. With the help of a good internet connection, you can renew your 4 wheeler insurance plan at the convenience of your home anytime. In this way, online renewal is easy and fast as you do not have to go to a branch of the insurance provider or call an agent for renewal. Moreover, the online car policy renewal process is paperless or requires very minimal paper-work.
• ✶ Simple Customization of Policy: You can easily customize your car policy while renewing it online. You can enhance the coverage of your policy by adding add-ons to it. However, before topping your policy with an add-on, you must keep in mind that the premium majorly depends on the cover type that you are taking.
• ✶ Secured Renewal / Purchase Process: Car insurance renewal online is an easy process because of the availability of all the required information over the web. This transparency enables you to make an informed decision. In addition to this, payment through secured gateways of payments ensures that your personal and critical information is not leaked anywhere. Therefore, it safeguards you from exposing to any fraudulent risks.
• ✶ Simple Insurance Provider Switching Process: In addition to all the above benefits, you can very easily switch your insurance provider while renewing your policy online. Since information regarding all the insurance providers is available online, thus it is very easy to make car insurance comparison online and select the best-suited plan in terms of premium and features.
• ✶ Easy No Claim Bonus Transfer Process: You should always transfer your NCB or No Claim Bonus at the time of policy renewal. While for the online renewal process, it is really easy and quick in comparison to offline renewal.
• ✶ A Transparent Method: Since in the online renewal process everything is in front of your eyes. This means nothing is hidden or no agent or someone is hiding any information from you. Whether it is a comparison of policies or switching of plans or payment processing everything is selected by you and happens in front of you. So, we can easily say that this method of policy renewal is completely transparent.

Benefits of Buying

Buying an online car insurance policy is a common practice today. With the buying of 4 wheeler insurance policy online, you can insure your car against any damage due to an accident, theft, fire etc within 2 minutes. If you are wondering why most people prefer to purchase four wheeler insurance online, check out its benefits below:

• ✶ No More Agents: Offline purchase of insurance policies involve agents who try to sell their own product rather than suggesting you a better policy from another insurance provider. Purchase of new car insurance policy online will eliminate such agents and you can buy the best policy after comparing various plans offered by different insurance companies.
• ✶ Zero Paperwork: Another benefit of buying four wheeler insurance policy online is zero paperwork. Contrary to the offline mode which requires you to fill multiple forms, the online mode allows you to fill up all the forms online. You can also upload the required documents online making the application process digital and free of any paperwork.
• ✶ Convenient & Saves Time: As compared to the offline modes, buying 4 wheeler insurance online is very convenient. You don’t have to visit a branch of the insurance company or take out time to meet the agent. You can get your car insured from the comforts of your home, hence, saving a lot of time and efforts.
• ✶ Payment Reminders: Missing policy payments or renewals can cost you a great deal. Not only will you lose out on the renewal discounts but also have a break in policy. But if you purchase your car policy online, you will receive timely reminders ahead of your due date ensuring that you do not miss out on the payments.
• ✶ Cashless Facility: Buying 4 wheeler insurance online offers cashless facility and involves zero cash transaction. You can make payment of your insurance premium online through online modes such as debit card, credit card and internet banking.
• ✶ Easy Comparison: With the online purchase of four wheeler insurance, you can easily compare the plans offered by different companies. Online aggregators allow you to compare the coverage and the premium quotes provided in different plans before selecting an ideal insurance policy for your car.
• ✶ More Cost-Effective: Buying an insurance policy online is more economical as you save a lot of in-between costs. Your premium reduces due to elimination of agents, zero paperwork and you get discounts that further reduce the amount of premium you pay.
• ✶ Easy Endorsements: Endorsement refers to any changes in the information provided in the policy document. in case of online endorsements, you just have to give a self-declaration as opposed to the filling up the endorsement form manually and submitting all the documents.
• ✶ Soft Copy of the Document: Another benefit of applying for car insurance online is that you have a soft copy of your policy document in your email. This makes it easy for you to access it from any place without the need to carry a hard copy with you.

Best Car Insurance Policy

The following table shows the complete list of the best car insurance policy in India with their personal accident cover and the number of network garages offered by the car insurers:

Disclaimer : *Servzone does not endorse, rate or recommend any particular insurer or insurance product offered by an insurer.

Benefits

It is not only because of the law but for the benefit of your vehicle, it is good to get it insured. Whether you purchase a new car or old second-hand vehicle, its insurance is needed always. A third-party insurance policy provides protection against liabilities (legal and financial) towards a third-party.

However, you can buy a comprehensive cover as well that not only provides third-party coverage but protects your vehicle against damage or loss. Here are a few benefits of having a four wheeler insurance policy:

• ✶ Personal Accident Cover: A comprehensive car policy not only provides third-party cover but as well as offers cover against personal accident. In personal accident cover, you get a pre-defined amount against death because of the accident and permanent total disability. In addition to this, one can purchase this cover for co-passengers as well even on an unnamed basis, which will be maximum as per the seating capacity of the vehicle. However, the amount of coverage is pre-determined even in this case.
• ✶ Loss or Damage of the Insured Vehicle: A comprehensive car policy provides coverage against damage or loss to your car. Reasons for damage like fire, accident, or self-ignition are covered in this plan. In addition to this, if the car faces losses because of theft, burglary, terrorism, riots, then also an insurance policy covers it. Moreover, it also covers loss or damage occurred due to transit via train, air, road, inland waterways, or lift.
• ✶ Vast Network of Garages: Most of the motor insurance providers have a wide range of network garages that are spread across the country. This feature ensures that you can get the service of your car anywhere in India.
• ✶ No Claim Bonus: One of the best benefits of having a car insurance policy is its No Claim Bonus (NCB) feature. You are eligible to avail of this offer for each claim-free year. The NCB is available as a discount on the next premium and this makes 4 wheeler insurance policy comparatively more affordable.
• ✶ Liabilities of Third-Party: If your car meets with an accident and causes loss or damage to the property of a third-party, then do not worry as it is covered under four wheeler insurance policy. Moreover, if you come across any legal liabilities because of an accident by your car like death or injury to any person or property, then do not worry, your car policy provides you coverage for the same.

The Right way to buy Car Insurance Policy

Finding the best car insurance policy can be a great deal, as this is a yearly investment that you make to cover the risks while driving on the road. The market is bursting with numerous four wheeler insurance plans providing value-oriented services to its customers. And it can get quite confusing to find the best 4 wheeler insurance policy online?

This checklist of the best car insurance companies in India will help you compare different quotes from various insurance companies online and select the best deal for yourself. You can check out this list of the best four wheeler insurance plans for 2020, by analyzing their features including the incurred claim ratio, network garages, and the coverage benefits.

Comprehensive and Third-Party method

It is not at all difficult to get a four wheeler insurance policy. You can purchase it by any of the below-mentioned three methods:

• ✶ Online: For purchasing a comprehensive or third-party insurance policy, all you have to do is to go to the website of your selected motor insurance provider. With minimal to no paperwork, you can buy affordable car insurance online.
• ✶ Visiting the Nearest Branch of the Insurance Provider: Once you select the insurance provider, you can visit its nearest branch and get your car insured.
• ✶ With the Help of an Insurance Agent: Last way is through an insurance agent. An insurance agent is the affiliate of the insurance provider. An agent provides the application form with other details.

Claim Process

All the car owners, at some point in time, need to file an insurance claim for a certain loss or damage. To avoid any confusion while filing a 4 wheeler insurance claim, here are a few points that you need to consider:

• Make sure that you have the following information ready with you at the time of claim intimation
• Time & date of the accident
• Name of driver and contact details along with driving license details
• Four Wheeler Insurance Policy Number
• Estimated Loss
• Event Description
• Survey location to support the investigation process
• Insured Contact Details
• Claim information should be provided at the customer support desk. They will take you through the claim process
• Once informed, the insurer's customer support team will provide you with a claim reference number
• After claim registration, a surveyor will be assigned for your case
• You will receive confirmation information on the text with details of the loss assessor
• You can coordinate with the surveyor for the appropriate time and he will conduct the survey as per your convenience
• There are some documents that you need to provide to the assessor, such as the type of vehicle and the severity of the damage
• You must also inform the Claims Processing Team about the need to settle your own loss claim.
• If the vehicle is re-inspected as advised by him, then coordinate with the surveyor again.
• Settlement will be done on the basis of survey claim

Required Documents For Claim

Keep the following documents ready while registering a claim with the Insurer-

• Copy of Police FIR
• Claim form duly signed by the policyholder
• Fitness Certificate for commercial vehicles
• Driving License
• Car Registration Certificate (RC)
• Insurance documents with the endorsement

The insurer will settle your claim within a week from the date of submission of all the required documents.