Whenever you are out on the road in your four-wheeler, chances of getting into accidents or mishaps always arise, causing damage to your car. Even if you are not out, some incidents, like natural calamities can also damage your assets. In such cases, an insurance policy helps you stay financially covered.
A four wheeler insurance is important for your financial security and peace of mind. In India, having four-wheeler insurance with third-party coverage is legally required. So, in this blog, we will cover the basics of four-wheeler insurance and the coverage they offer.
What is Four-Wheeler Insurance?
Four-wheeler insurance mainly does 2 things: it protects you against third-party claims and protects your vehicle financially against damages. If your vehicle is damaged due to an accident or disaster, a four-wheeler insurance can cover the cost of repairing it. While driving the four-wheeler, if you damage a third party’s vehicle or property, that too can be covered under such policies.
Why Do You Need Four-Wheeler Insurance?
It can be costly to repair a damaged four-wheeler or pay for damage suffered by a third party. But buying car insurance from companies like ACKO can give you much-needed financial protection. Here is why you need four-wheeler insurance:
● Complying With the Law
As per the Motor Vehicle Act of 1988, owners of four-wheelers must have insurance with at least third-party coverage. Not complying with the law can lead to penalties and imprisonment. Therefore, to fulfil your duties as a law-abiding citizen, you must buy four-wheeler insurance with at least third-party coverage.
● Financial Safety
Buying a four-wheeler is a significant step. But if your car is involved in an accident such as a collision, it can lead to significant damage to your vehicle. Repairing the vehicle can lead to a significant bill. Your car could also be stolen or suffer damages due to natural disasters such as floods, earthquakes, and landslides.
Also, your car could end up damaging a third party’s vehicle or property. With four-wheeler insurance, you are guaranteed financial safety as the insurance company will look after all these issues by settling your claims.
● Personal Accident Cover
A personal accident cover takes care of medical needs in case of any injuries suffered or death while driving a car. All car owners must have a personal accident cover of at least Rs. 15 lakh. In the case of death, the nominee receives the total compensation.
Categories of Four-Wheeler Insurance Policies
Platforms like ACKO Insurance offer several options for purchasing four-wheeler insurance. Here are the main types of four-wheeler insurance you can buy in India:
● Third-Party Insurance
Third-party four-wheeler insurance covers third-party claims and liabilities. It covers damages to another person’s vehicle and property, as well as injuries and deaths suffered by a third party. IRDAI has made third-party insurance compulsory. Third-party insurance does not cover any damage suffered by the policyholder.
● Comprehensive Car Insurance Policy
Comprehensive car insurance covers damages suffered by a third party as well as a policyholder. Any damage suffered by the car owner due to an accident or natural disaster comes under it. To further enhance the coverage, you can opt for add-ons.
● Zero Depreciation Policy – Super Saver (Bumper-to-Bumper)
In addition to the coverage provided by a comprehensive car insurance policy, a zero depreciation policy nullifies the depreciation suffered by the car components. Thus, you are entitled to the complete claim value irrespective of the car’s depreciation.
● Stand Alone Own Damage Cover Policy
It is a policy that covers damages suffered by the policyholder’s vehicle. It does not cover damages suffered by a third party. If you have already bought third-party insurance, you can purchase your own damage insurance to safeguard yourself.
Add-Ons for Comprehensive Car Insurance Policy
Here are some of the add-ons you can get with a comprehensive car insurance:
● Roadside Assistance Cover
What will you do if your car breaks down in the middle of the road? Well, roadside assistance cover can help. From replacing tyres to repairing car components, your insurer can take care of all the requirements. It is 24/7 help, which you can avail of by contacting your insurer.
● Engine Protection Cover
The engine protection covers any costs incurred in repairing damages to the engine, gearbox, or differentiated assembly of the car.
● No Claim Bonus (NCB) Protection
It keeps the no-claim bonus valid even if you raise a claim during the policy period. A discount of up to 50% is still possible with this add-on.
● Consumables Cover
It covers the cost of replacing consumables such as engine oil, gearbox oil, nuts, bolts, and lubricants. Since these are not covered by comprehensive car insurance, you can buy an add-on for it.
Bottom Line
As discussed, getting an insurance policy for your car is significant as it covers you financially for your car damages. Getting an insurance policy and applying for claims is very easy, especially due to the availability of online options among several insurance providers like ACKO Insurance. Hence, make sure to read the terms and conditions before purchasing the policy to avoid future hassles.