In today’s day and age, almost everyone has a car. Whether you have a compact four wheeler or a luxury one; it is always a good idea to get it protected against accidents. One of the easiest ways to do so is with the help of a car insurance policy.
There are hundreds of insurance policy providers which makes it convenient for you to conduct a car insurance comparison. Besides each car insurance policy online has a different set of features. These features can give you a variety of coverage depending on your requirements.
In case this is your first time purchasing a 4 wheeler insurance, then there are specific terms that you need to learn. These terms will help you identify the basics of all car insurance plans.
1. Comprehensive cover
If as a policyholder you are looking for an extensive range of coverage for your car; then this is the type of insurance policy that you must buy. Typical comprehensive insurance would cover the cost of damages towards yourself, your vehicle, as well as the third party involved in the accident. Besides, you can also even buy car insurance online for such coverage needs.
2. Insured declared value
In case after the accident your vehicle is entirely damage and is not usable, you are eligible to receive insured declared value. It is the maximum amount that you would be able to claim against your car insurance policy. Usually, this amount is related to the current value of your vehicle. Also, it changes each year when you get your four wheeler insurance renewal done.
3. No claim bonus
If you are a safe driver who does not get involved in an accident, during the car insurance policy tenure; then the company provides you with a no claim bonus. In simple terms, it is a reward extended towards the policyholder since they did not make any claims against their car insurance policy. This way you get accidental coverage as well as some financial benefit.
Even though a car insurance policy provides you with financial coverage, there is still a certain percentage of the amount that the policyholder needs to pay. This percentage is known as a deductible. There are two types of deductibles, one where the insurance company prefixes the rate; and the other, where it is flexible and can be chosen by the policyholder.
5. Third party coverage
Whenever you are buying a car insurance policy, there are three parties involved in it generally. The first party is the policyholder of the car insurance. The second party is the insurance company itself. Finally, the third party is the person/ vehicle with whom your car met with an accident. To cover the cost of any injuries or damages caused to the last category, you can buy a third party car insurance online.
6. Cashless garage
Whenever you have a car insurance policy, you can get your vehicle repaired and maintained at a cashless garage. All you need to do is show them the policy coverage paper, and they would settle your bill against the IDV amount. A car insurance policy in India follows the same working mechanism as a health or medical insurance.
Another primary term that is used in car insurance policies is add-ons. These add-ons are similar to riders. It means additional features which can be incorporated in the plan at a later stage. In case you started with a basic car insurance policy, and are now looking to extend the coverage; you can use add-on facility to do the same.
The Bottom Line
By going through these terms, you will be able to simplify, the process of purchasing a car insurance policy. In case, you also want to get insight into how to pay car insurance online; you can go through our other posts as well.