Month: August 2022

Car Insurance Quotes: Everything You Need to Know

For a country with the second largest population in the world, India has about 295 million vehicles on the road. Despite having such a low number of vehicle ownership, India ranks at the first place globally when it comes to road accidents, according to a World Bank report. With about 4.5 lakh accidents and 1.5 lakh deaths, India accounts for 11% of the road accidents in the world. Although the number of accidents can be reduced if vehicle owners follow all the rules and regulations and maintain road safety, predicting or avoiding an accident is impossible. *

If you are a car owner, you would want your loved ones to be protected from various perils on the road. It is possible to have a financial safety net from such unfortunate circumstances in the form of a car insurance policy. But before you purchase car insuranceright away, you need to be aware of car insurance quotes and why they are important when purchasing your policy. *

What are car insurance quotes?

A car insurance quote is basically the estimated premium that you would have to pay for the insurance you plan to buy. Depending on the type of insurance and the insurer, the quotes may vary. The quotes for third-party car insurance are standardised and fixed for all insurers by the regulator, the IRDAI. However, the quotes for comprehensive four-wheeler insurance varies from one insurer to another. * You can visit the official website of IRDAI for further details.

What are the factors that affect car insurance quotes?

There are various factors that you should keep in mind which can affect car insurance prices:

  1. Type of policy

As mentioned earlier, the quotes for comprehensive car insurance might cost more due to the dual coverage it provides, i.e., to the car owner and the third party. Also, add-ons offered in a comprehensive policy also increase the cost that you will have to pay towards it. *

  1. Type of car

The type of car that you own has a potential impact on the car insurance quotes. The car’s make, model and the variant affect the quote. Also, the type of engine that your car has is a factor that is considered by the insurer when presenting the quotes. Petrol cars have lower quotes compared to diesel cars due to the high maintenance cost of a diesel car. If your car falls in the hatchback segment, the quote will be lower, whereas the quote for sedans, SUVs and MUVs will be higher. *

  1. Your driving track record

Insurance companies consider the driving record of the applicant when giving a quote for the policy. Drivers who have a good track record without any accidents involving their cars will be charged less by the insurer. On the other hand, if you are a driver whose car has been involved in a few accidents, the quote will be higher. This estimation is done on the basis of your claim history and survey of your car. *

  1. The area where you live

The geographical location of the applicant is one of the main factors that can impact the pricing of their insurance plan. If you happen to live in an urban area with dense traffic conditions and a higher number of accidents, the insurance quote will be higher. If your place of residence is in a flood-prone area, the insurer will charge you more. *

Why is it important to check car insurance quotes?

It is always better to have an idea about how much you might have to pay for a service that will safeguard you and your family from on-road mishaps while at the same time protecting you from the liabilities that could arise from an accident. Having prior knowledge can also make you aware of what you are being charged for by the insurer and if you are paying more than what the competitors are charging for.  *

It is always advised to compare quotes of different insurers before you purchase a policy that suits your needs. You can easily do so by going online and visiting websites of various insurers. To get a rough quote for car insurance, you can use the car insurance calculator on their website. *

* Standard T&C Apply

Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms and conditions, please read sales brochure/policy wording carefully before concluding a sale.

Does Your Car Insurance Policy Cover against Vandalism?

Car insurance is a legal requirement as well as providing financial protection. This is due to the mandate of the Motor Vehicles Act of 1988. While you are buying a policy to fulfill the requirement of at least third-party insurance coverage, you should also consider the various additional benefits it can offer through comprehensive coverage. The sum total of benefits you receive from your insurance coverage is determined by the type of policy purchased, the inclusions and exemptions of the plan, and other factors.

While a car may be subject to a number of risks such as accidents, natural disasters and other man-made damages, vandalism has always been a subject of doubt in the minds of policyholders. More precisely, they wonder whether vandalism will be covered when they buy car insurance online. The answer to this question lies in the insurance coverage you purchase. Before that, you need to understand what vandalism is and how it can be related to car insurance coverage. *

What is vandalism?

Vandalism is described as the purposeful destruction of a property that belongs to someone else. In the case of your car, it means damage to your car intentionally inflicted by another individual. This is a common sight during civil unrest, especially during riots. At such time,not only cars, but other personal property of the person is also at the risk of being damaged like houses, shops, etc. *

Is vandalism covered by car insurance?

Now that you know what vandalism is, perhaps the only question you might have is ‘if it is covered under car insurance?’ As mentioned above, the coverage status of damage due to vandalism depends on the type of policy you buy. *

There are two types of car insurance policies. These can be called third-party car insurance and comprehensive car insurance. Third-party policy protects you, the policyholder, from potential liability. These liabilities may arise as a result of an accident or collision where you end up causing damage to the property of a third party. In addition, the insurance policy covers compensation for the injuries or death of such a third party in the event of an accident. As a result, third-party plans cover only legal and financial liabilities. However, you can change the type of policy you have during car insurance renewal. *

Comprehensive policy is another type of insurance plan that can be purchased. This policy includes third-party coverage as well as own damage protection, which is a useful alternative to a third-party insurance plan. *

Since this type of own damage policy covers both natural disasters and human-caused activities, it also covers vandalism. With a comprehensive policy, you can reduce your pocket expenses while getting many more benefits under your insurance coverage. However, keep in mind that comprehensive insurance coverage can also affect car insurance prices. To compare how different the two types of policies can be in terms of price, you can use a car insurance premium calculator.  *

Since when your car would be vandalized is impossible to predict, having insurance and being prepared for a catastrophic event such as social unrest or destruction is the best option. If you suspect that something is going to happen, you can avoid such damage by parking your car in a safe place away from the main road. *

* Standard T&C Apply

Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms and conditions, please read sales brochure/policy wording carefully before concluding a sale.