A car insurance policy is a financial tool that is mandatory for every car owner. Just like any tool you must use, if you want to make sure you can use it effectively, you must know all there is to know about it. Therefore, it is important to understand the features of car insurance to get the most out of the policy you buy.
Most people dream of buying a car since childhood. Buying a car insurance policy will protect that when you do realize this dream, it stays safe and unharmed. The main advantage of having car insurance is that it ensures a high level of protection from damages caused by road accidents. It also protects us from problems arising from third party liability. However, there is much more to know about car insurance than just its base functions of it. The features of your car insurance policy depend on the type of coverage you choose to buy. Here are the features of car insurance based on types of policies:
- Comprehensive car insurance
Comprehensive plan will cover you and your vehicle against damages done to your vehicle due to accident, theft, etc. This plan provides protection against car damage to third parties or their property. The name of this plan comes from the fact that it offers all-around coverage to your car. This is the reason that it is the most preferred choice among people that want to buy car insurance online.
Features of Comprehensive Car Insurance
A standard comprehensive car insurance plan insures your car against the following situations:
Damage due to natural disasters – It covers the car from damage and destruction caused by floods, earthquakes, storms, etc.
Damage due to man-made disasters – It covers damage and destruction to the vehicle due to theft, robbery, strike, riots, etc.
Personal accident coverage – The cover provides protection to the car owner/driver and fellow passengers during travel. The cover is also valid for damage and destruction that may occur when mounting or dismounting from the car.
* Standard T&C Apply
- Third party car insurance
This plan protects the insurance buyer from legal and financial liabilities created by damage to any other person or their property caused by your vehicle. As per this type of policy, you will not be covered in case of theft, robbery, accident, or any other damage to your car. This type of policy is purely for the coverage of third party related expenses. In terms of car insurance prices, a third-party policy is the cheapest option.
Features of third-party insurance
Third party liability cover protects you from any legal liability arising out of the following:
- Permanent injury to the individual
- Death of the person
- Damage to the person’s property
- Damage caused while driving an insured vehicle on the road
* Standard T&C Apply
Both comprehensive and third-party car insurance plans are valid for about 12 months. The plan must be renewed each year to receive the benefits offered by the insurance company.
- Add-ons
Add-ons are additional coverage that can be purchased with a comprehensive car insurance policy. These add-ons offer a variety of coverage benefits in addition to the base coverage of each policy. Hence, the features that your basic policy is missing can be included through add-ons. Since add-ons charge an extra premium, you must ensure that your coverage after including add-ons is within your budget. You can use a car insurance premium calculator for checking how much a certain add-on affects your premium. Some of the popular add-ons for car insurance include zero depreciation cover, roadside assistance cover, passenger cover, key replacement cover, etc. * 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.
