Know the Add-on Features and Benefits of Car Insurance Policy




Car insurance policy’s features vary as per the type of coverage you choose. Insurance policies for a car are primarily of 2 kinds. They are-

  • Third-party insurance policies - Having third-party insurance is mandatory for every car owner in India, as regulated by the Motor Vehicles Act of 1988. These insurance policies provide compensation only for loss caused to the third party individual or vehicle when you are responsible behind the road accident.

  • Comprehensive insurance policies - This insurance plan provides extensive coverage which includes compensation for both the insurance-holder as well as the third party in case of a road accident.

A comprehensive car insurance policy also offers compensation for loss occurring to the insured vehicle due to fire, theft or any natural calamity.

Features of a car or vehicle insurance policy

Here is a list of the different features you can benefit from with an insurance plan for your car-

Wide coverage

A vehicle insurance policy includes compensation for the following-

  1. Loss due to riots, fire, theft, terrorist activities, etc.
  2. Damage to the vehicle caused in transit by rail, road, air, elevator or waterway.
  3. For death or permanent disabilities occurring due to an accident.

Add-on features

Add-on covers offered by certain companies widen the coverage of a car insurance policy. Some popular add-on features are-

  1. Engine protection
  2. Roadside assistance
  3. Zero depreciation cover
  4. No claim bonus
  5. Return to invoice
  6. Coverage for passengers in case of an accident

Premium charges

You have to pay a premium against the insurance policy on a yearly basis. However, the premium charges are set based on various factors like-

  1. Age of the insurance-holder
  2. The profession of the insurance-holder
  3. Model and value of the insured car

The parameters are set by the insurer which is why the determining factors vary from one company to another. You can also receive fund for replacing lost car keys and repairing consumables.

Read Also: Car Insurance Features You Must Know About

You must also make sure to check the discounts, claiming process, coverage limits, exclusions and other terms and conditions while availing a suitable insurance policy for your car.