Overview of Car Insurance In India
Car insurance is an important product available to every motor vehicle owner in India. In a country with a huge number of vehicles, car insurance is often seen as a necessary expenditure. It is important to know what is covered by the policy, which car insurance company provides the best protection and how to get the best deal.
Car insurance is primarily divided into two categories: third party liability or comprehensive cover. Third Party Liability covers any damages caused to third parties due to a car accident and is mandatory in India. Comprehensive cover, on the other hand, also covers any damages caused to the vehicle insured and is a voluntary policy for many.
In India, there are a number of car insurance companies that offer different kinds of coverage. These companies have different premiums and claim settlement procedures. Some of the big players in the market are Bharti Axa, HDFC Ergo and Bajaj Allianz.
By law, all vehicles registered on Indian roads must have third-party liability insurance. Nevertheless, many car owners also opt for a comprehensive cover which also covers damage to the insured car itself. This is where the differences between companies become apparent.
What to Look For When Choosing a Car Insurance Policy
The primary factor to consider when looking for car insurance is the coverage it provides. This includes the extent of coverage and the add-on features offered. With a comprehensive cover, most companies cover damage to the insured car due to natural disasters, robbery, fire, and accident. Some even cover personal accident and medical expenses.
When choosing car insurance, it is also important to consider the financial stability of the company providing the policy. Many companies are known for their claim settlement procedure and customer service. Evaluating the company’s track record can help car owners make a more informed choice.
In addition to coverage and company stability, car owners should also consider the ease of purchasing and renewing the policy. Some companies have online portals where policies can be easily purchased and renewed. They also have customer service teams that can help answer queries and process claims.
Finally, it is important to compare the premiums of different car insurance companies. A comprehensive policy may cost more, but it may also offer more coverage and benefits.
Pros and Cons of Different Car Insurance Companies
Bharti Axa offers some of the most comprehensive coverage plans in the market. It covers passenger medical expenses, damage to the car due to regular wear and tear, and towing charges. Bharti Axa is also known for its relatively fast claim processing time. However, the downside is that it does not cover some of the more specific scenarios, such as natural disasters.
HDFC Ergo is also a major player in the car insurance market in India. Its comprehensive coverage includes natural disasters, fire, and theft. The company is known for its customer service and ease of claim settlement. However, some customers have complained about the higher premium of their plans.
Bajaj Allianz is another popular car insurance company in India. It offers comprehensive coverage, including natural disasters, malicious acts, and fire. Bajaj Allianz is also known for its competitive premiums, but unfortunately its customer service is not as good as that of the other two companies.
When filing a car insurance claim, it is important to understand the claims procedure. Each car insurance company is different and has its own procedures for filing a claim. It is important to read the policy document to understand the exact details.
Most car insurance companies have a 24-hour toll-free helpline which can be used to file a claim. Once the claim is filed, the company will review the documents submitted and dispatch the claim adjuster to inspect the vehicle. After the inspection, the company will decide on an amount to be paid to the claimant.
The most important aspect of the claims process is the speed. Some car insurance companies have their own internal process to expedite the process and settle claims faster. Others outsource the process to a third-party claims adjuster. Smaller companies may take longer to process a claim, so it is important to consider the company’s claims record.
Benefits Of Having Car Insurance
One of the major benefits of having car insurance is the peace of mind that comes with the knowledge that you are financially protected in the event of an accident or other unforeseen circumstance. Car insurance also helps to reduce out of pocket expenses if you are ever involved in an accident, as it covers damages to the car as well as medical expenses. This can help to protect your assets and save you money in the long run.
Having car insurance may also be necessary in order to get a loan to buy a new car. Banks and other financial institutions require car insurance to protect their investment, and may require proof of insurance in order to provide the loan. In addition, car insurance may also be necessary in order to legally register a car in some states.
Finally, car insurance may also provide legal protection if you are ever involved in a lawsuit due to an accident. Many car insurance policies provide legal fees and other costs related to litigation, which could save you a lot of money if you were to face a lawsuit.
There are several car insurance companies in India that offer different kinds of coverage. It is essential to consider the coverage offered, the company’s claims record, and the premium charged before making a decision. It is also important to understand the claims procedure, so you can get the most out of your policy. Finally, having car insurance provides peace of mind in the event of an accident, while also providing legal protection and saving money in the long run.