Car insurance is a car insurance policy that includes cars and owners of unexpected losses that result in financial losses. Car insurance policies are contracts where insurance companies provide coverage on the road with cars that are insured on third-party liabilities and damage themselves.
What is car insurance?
Automobile insurance, also known as vehicle insurance or car insurance, provides financial protection to you and its four-wheel accidents, robberies, fires, calamities, and any loss or damage caused by a person or property of third parties. It also provides a cover for personal accidents to the owner-driver of the automobile.
Types of car insurance policy
Automobile insurance is a protective cover for your car against damage caused by natural calamities such as flooding, earthquake, cyclone, accident, and theft. There are three types of auto insurance policies:
1. Third-party car insurance
TIERCE auto insurance guarantees coverage for third-party financial responsibilities such as car damage, personal injury, death, disability, and property damage.
2. Comprehensive car insurance
A comprehensive insurance policy provides coverage for third-party responsibility, as well as damage caused to your own car. Compared to third-party civil liability insurance, a comprehensive car insurance policy offers comprehensive coverage, more benefits, and covers the car damage insured in case of an accident, collision, theft, etc.
3. Own Damage
The policy of own damages provides coverage to the insured in case there is some type of damage to your car. Third-party insurance does not cover your own losses, so you should buy it separately.
4. Pay as a Drive Insurance
Pay-as-You-Drive insurance is also known as vehicle insurance based on use. It allows the insured to pay the insurance premium according to the kilometers driven by the insured automobile. This will be useful for people who have multiple cars and, therefore, do not use each of them very often. Currently, there are only some insurers that offer this policy. It provides comprehensive coverage for own damage and third-party liability coverage is provided pilot for a period of one year.
How to calculate car insurance premium?
The cost of car insurance is decided on the basis of several factors. It is also easy to discover the four-wheel drive insurance premium using the automotive insurance calculator online. However, the insurance provider takes into account the following settings before deciding on 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 the OD premium amount is the Own Damage premium calculation formula:
Insured Declared Value X [Car Premium as per the insurer)] + [ Optional Benefits] – [NCB/Discount etc.]
How to compare car insurance policies online?
The self-insurance comparison is essential to choosing the best policy for your car. Compare online automotive insurance in the four Wheeler insurance companies before renewing what is quite convenient. It takes a few minutes to buy or renew online auto insurance. You must enter the details of the vehicle, contact information, and insured details and choose the lid according to your needs.
The purchase of an auto insurance policy is mandatory for all Indian cars in accordance with the 1988 motor vehicle law, 1988. Automobile insurance companies encourage third parties for loss or damage caused by the car insured and the four-wheeled insured. This can help:
1. Car Make, Model, and Variants
2 . Manufactured year
3. CNG Fitted Car
4. Additional Covers
Best Car Insurance Policy in India 2022
The following table shows the full list of the best automobile insurance policies in India with their personal accident cover and the number of network garages offered by car insurers: