What Is a Car Insurance?


Car insurance is one of the most popular as well as beneficial types of general insurance. As the name suggests, car insurance covers your vehicle and offers an insurance cover for it. So, if the vehicle is damaged, you can seek the repair costs from your insurance provider. There are various other features and uses of car insurance. Take a look at this article to know more.

Is it necessary to buy car insurance?

If you are wondering whether or not car insurance is important, well the answer is a big YES! It is not just important, but absolutely necessary to get a car plan if you are a vehicle owner. First and foremost, the law makes it mandatory for you to own a plan. Then, keeping in mind the rising expenses, you have no option but to cover your vehicle. In the next section we discuss the features and uses of car insurance. Read it to understand the necessity of such an insurance cover.

Useful features of car insurance

Let us now take a detailed look at the various features of car insurance:

  • Types of car insurance: Right at the offset, we must inform you that motor insurance is available in two variants – third party and comprehensive. Third party motor insurance, as the name says, is a type of motor insurance that only covers the third party expenses. If you injure a third party in an accident or damage their property, your insurer will compensate them on your behalf. However, there won’t be any available cover for your own vehicle. The other type is the comprehensive cover. Here, you get all the benefits of a third party cover and additionally get insurance for your own car as well.
  • Range of cover: Under a comprehensive car insurance plan, you get cover against natural disasters such as earthquakes and cyclones. You also get cover against fire damages. Lastly, you get cover against thefts. All these covers are available in addition to the basic damages such as dents, bumps, etc.
  • No claim bonus: The no claim bonus or NCB as you know it better, is a unique benefit of car insurance. It is a discount that you get on your current year’s premium when you complete a claim free policy year. So, you are rewarded for being a good driver. You can make healthy savings on your car insurance premiums if you maintain them and your NCB carefully.
  • Premium Payment Options: A wonderful feature of motor insurance is the variety of premium payment modes. Here, you can choose to pay your premiums through cheque, NEFT, Credit Card, Debit Card, Net banking, etc. Choose the one that suits you the best and maintain your car plan with ease.
  • Riders: When you buy a car insurance plan, you get the option of buying some add-on covers too. These covers are available at an added cost, but help you to customise your plan in a highly beneficial manner. Choose your riders well and you will get an excellent car insurance cover for your beloved vehicle.
  • Portability: The IRDA has made it very easy for you to port your car insurance cover between insurance providers. If you are unhappy with your current insurer, you can always make a switch when you renew the plan. Your accumulated NCB, the IDV and other such factors will also be carried to your new plan. You can therefore, port your car insurance policy without any difficulties whatsoever.

These are some more useful features of car insurance. Run a comparison on websites like Coverfox.com and find your ideal cover. Then, read the policy documents carefully to understand the features with greater clarity. This will help you to have the best possible car insurance policy for yourself.

In a nutshell

To put it in a nutshell, a car insurance plan is extremely helpful. You should not step away from getting yourself the best possible car insurance cover. Thankfully, there are some excellent vehicle insurance policies available in India these days. Go online and run a quick and simple comparison. Once you do this, you will find the best plan at the best rate. Then, buy the plan and make it yours in no time. You can then drive your vehicle with a lot of mental peace, knowing you have a good car insurance cover to back you up whenever there is a requirement.