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Ideal Car Insurance Cover
Sep 25, 2022

What Is The Ideal Car Insurance Coverage For City Drivers?

Having a four-wheeler in today’s day and age can help to reduce your dependency on public transport systems. It can not only be used to commute for your travels to work, but also weekend outings with friends and family. Thus, its use is not limited to short travels and can be used for a variety of reasons. Car insurance documents are one of the fundamental documents, besides the registration and PUC certificate. Having one is a legal mandate and ensures compliance with the law. Other than that, a car insurance plan also protects against car-related risks. If you are someone who drives your car predominantly in the city, here’s what you should consider buying for all-around insurance coverage.

What is the Ideal Insurance Coverage for Cars Driven Mainly Within the City?

An ideal car insurance policy for city commutes is the one that covers the most risks. While these risks can be different for different people, there is no fixed definition of an ideal car insurance policy. In India, there are two types of car insurance plans that can be used to insure your car — a third-party cover or a comprehensive cover.

Third-party Policy

A third-party plan is the one that is the minimum required insurance cover by the Motor Vehicles Act of 1988. Noncompliance with this requirement attracts hefty penalties. A third-party policy provides coverage for liabilities that may arise in the event of accidents injuring a third person or causing damage to their property. With a third-party cover, property damages can be covered up to ₹7.5 lakhs whereas the amount as required by the Motor Accident Tribunal shall be paid for injuries. Since a third-party plan is a mandatory insurance cover, its car insurance prices are governed and controlled by the regulator, the Insurance Regulatory and Development Authority of India (IRDAI). Lastly, if you choose to buy a third-party cover, remember that it does not protect against repairs to your vehicle. You can visit the official website of IRDAI for further details. *

Comprehensive Policy

A comprehensive policy includes a third-party cover, an own damage cover and a personal accident cover bundled into one. This policy provides coverage for not just third-party liabilities, but also damages that may be caused to your car. During an accident, it isn’t only a third party who suffers damage, but also your car. Thus, a comprehensive plan has a broader insurance cover when compared with third-party policies. Accidents, natural calamities, man-made events, and theft are some of the perils covered within its scope. Comprehensive plans also have the advantage of customization of insurance cover using the add-on facility. For instance, depreciation that lowers the payout of your car insurance policy can also be covered by using a zero-depreciation plan. Similarly, other add-ons like engine protection cover, roadside assistance cover, key replacement cover and return to invoice cover can also be purchased. * *Standard T&C Apply The ideal car insurance policy for you will depend on the risks faced by your car, the locality where you reside, driving conditions, and the like. So, every policyholder needs to assess the risk and only then purchase a suitable insurance policy. In this process, the premiums are a crucial consideration for which a car insurance premium calculator can be used. It is a free tool that aids not only in determining the price of your policy based on the features you have opted for but also in comparing the several available policy alternatives.   Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms and conditions, please read the sales brochure/policy wording carefully before concluding a sale.      

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