What is Car Insurance ? Benefits, Types & Insurance Claim Process

In today’s era, having a car is not a special thing, but being insured along with the car is a special thing in itself. Because along with the person in the car, the insurance of the car is equally important as that of the driver.

So today, we share some information like what is car insurance, Types of car insurance, How to claim car insurance etc.

If you also want to know this information regarding the insurance of your car, then read this article till the end.

What is car insurance:-

At present, Everyone should have car insurance.Because when car crash. Then car insurance company then provides cover for damage caused to the car, and damage caused to the driver, and damage caused to the passenger.To compensate for this loss, the car insurance takes some money from the car owner.Car insurance is mandatory in India.Whether it is a private vehicle or a government vehicle.Work with the car company is an agreement between the insurance company, which pays the damage caused to the car owner.

What is car insurance
How to claim car insurance
what is car insurance

Type of car insurance:-

There are two type of insurance, first is Third party car insurance and second is comprehensive car insurance.But third party car insurance is mandatory in India.

#1. Third party car insurance:-

In third party insurance, if your car damages any other vehicle, then in this situation the car insurance companies will get the benefit of the damage caused by you only to the other vehicle, in this you will not get any benefit if you have taken third party insurance.

#2.Comprehensive car insurance:-

In Comprehensive Car Insurance, the car insurance company compensates for the loss of the third party as well as the loss of the first party, so comprehensive car insurance should be taken, it benefits both the parties.

What dose cover comprehensive car insurance:-

On taking comprehensive car insurance, the car insurance company indemnifies the following damages .

  • Loss of third party
  • Car on fire
  • In case of car theft
  • Damage caused by natural calamity
  • Damage caused by falling trees on car
  • Riot damage.

What dose not cover comprehensive car insurance:-

The following points are given below for which damages the car insurance company does not compensate for.

  • Compensation for damage caused by drunk driving.
  • In case of electric and mechanic break down.
  • Do not compensate for damage caused by driving without a license.

Car insurance terms:-

If the document given by the car insurance company is very big, then the customer does not need to panic because the important point related to it is given below which will be beneficial for you.

What is zero depreciation cover:-

In this the present value of the vehicle is not fixed but unfortunately the vehicle accident occurs then the insurance company pays the full amount as decided by it, it is called zero depreciation cover.

What is insured declared value:-

The car gives the maximum value of the present as decided by the insurance company when the car is completely destroyed or stolen. This amount is paid by the insurance company to the car owners.It is called insured declared value.

What is voluntary deductible :-

If the voluntary deductible option is missed while taking car insurance, then you can select this option while renewing the insurance, so that while making a claim, you can pay a small amount as per your wish. This reduces the sum insured slightly and the rest is paid by the car insurance company.It is called voluntary deductible. How to claim car insurance?

What is no claim bonus:-

Due to not having a single claim on the car insurance taken by the car owner, the car insurance company gives some discount to the car owner on getting the car insurance renewed by the car owner.It is called (NCB) no claim bonus.

How to claim after accident:-

If you want to claim your car accident insurance then follow the below steps after car accident:-

  • After the accident, first note down the number of the car.
  • Register an FIR against the vehicle causing the accident at the nearest police station.
  • contact car insurance company.
  • File an accident claim with a car insurance company.
  • Give the required documents to the car insurance company.

Documents required for car insurance:-

If you have to take car insurance then must check the given documents:

What is car insurance
  • RC of car.
  • Passport size photo.
  • Address proof.
  • Driving license.

These are the documents required to get car insurance.

Benefits of having car insurance:-

If you are thinking of a car insurance then it’s a good decision. You get many benefits with a car insurance ,some major benefits given below :

  • The car insurance company pays money to compensate for the damage caused during the car accident.
  • Car insurance company pays money in case of death of driver or ride or someone.
  • The car company also pays money for the damage caused by the theft of the car or due to any other reason.
  • Car insurance should be taken by everyone as it definitely helps a little in times of adversity.

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