Car insurance is an investment that every car owner must make to protect their vehicle against unforeseen events. With the increasing number of cars on the roads in India, it is important to choose the right insurance policy that covers all the possible risks you and your car may face.
First-party car insurance, also known as comprehensive car insurance, is one of the most holistic forms of car insurance available in India. It offers wide-ranging protection to a car and its owner. In this article, we will delve into the details of first-party car insurance, including its benefits, inclusions, and exclusions.
Benefits of First-Party Car Insurance
Here are a few benefits that first-party car insurance gives you:
First-party car insurance offers complete protection to a car and its owner against a wide range of risks, including theft, fire, natural calamities, and accidental damages.
Covers third-party liabilities
Car insurance not only covers the damages to your car, but also covers the third-party liabilities, including death or injury to other road users, or damage to their property.
Cashless claim settlement
Most car insurance
companies offer cashless claim settlement, which means that the policyholder can get their car repaired at any of the network garages without paying for the repairs out of their own pocket.
First-party car insurance gives you the added advantage of 24/7 road assistance. This is a useful benefit that helps you in case of breakdowns, flat tires, or other emergencies while on the road. However, you might have to get this benefit as an add-on. Benefits like these are not available to people that only have third-party car insurance.
If the policyholder does not make a claim during a policy year, they will earn an NCB benefit that can lower their premium at the time of car insurance renewal.
Car insurance allows the policyholder to customize their coverage by choosing the add-ons that best suit their needs and budget.
Inclusions of Comprehensive Car Insurance
Here are a few inclusions of car insurance coverage:
While third-party car insurance
includes only liability coverage, comprehensive car insurance includes own damage cover. This means the policy will cover the repair or replacement of your car in case of damages due to any accident, theft, or natural calamities. You must check with the insurance provider about the extent of your own-damage coverage.
Third-party liability cover
Comprehensive car insurance includes third-party liability cover, which covers the legal and financial liabilities that may arise due to an accident involving your car. This cover takes care of the medical expenses of the third-party, as well as compensating them for any damages caused to their property. This is the coverage that you would receive if you bought third-party car insurance. However, with first-party car insurance, you get third-party liability and own-damage coverage.
Comprehensive car insurance includes personal accident cover for the policyholder and passengers in case of an accident. This cover compensates the policyholder and passengers in case of death or disability due to an accident.
Exclusions of Comprehensive Car Insurance
Here are few things and scenarios that first-party car insurance will not cover:
Car insurance does not cover damages due to normal wear and tear of the car. This includes damages caused due to aging, lack of maintenance, or overuse of the car.
Driving under the influence
Car insurance does not cover accidents that might happen while you are under the influence of alcohol or any other substances. You should know that driving under the influence is a criminal offense in India. Not only will you face a claim rejection, but you also might have to pay heavy fines.
Driving without a valid license
The insurance claim will be rejected if the driver of the car does not have a valid driving license at the time of the accident. It is imperative that the policyholder ensures that the driver of the car at the time of the accident has a valid driving license.
First-party car insurance does not cover damages that are intentional or self-inflicted. For example, if the policyholder deliberately damages their own car, the insurance company will not cover the costs of repairing or replacing the car.
Driving outside the geographical area
The insurance company may not cover the damages incurred if the accident happened outside the geographical coverage area specified in the insurance policy. For example, insurance companies in India will cover you anywhere in India. However, if the accident happens during a road trip to a neighbouring country, you will not receive coverage.
Wrapping It Up
In conclusion, first-party car insurance provides comprehensive protection to a car and its owner against a wide range of risks. It is important to understand the benefits, inclusions, and exclusions of car insurance to choose the right policy for you. It is advisable to compare different insurance policies and choose one that offers the best coverage at an affordable premium. To ensure a good balance between coverage and premium, you should use an online car insurance calculator
. Always read the policy document carefully before buying car insurance, and make sure that you are aware of all the inclusions, exclusions, and terms and conditions.
Investing in comprehensive car insurance assures complete protection for a car and its owner against unforeseen events. So, why wait? Get your car insured today and enjoy peace of mind while you drive!
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.