All You Need to Know About Car Insurance and Car Spare Parts Protection

Car and insurance goi hand in hand. Thei more you love youri car, the more carei you will take ofi it. And what betteri way to show lovei than buying adequate insurancei for any eventuality involvingi your car.

Car insurance protectsi you against financial lossi or legal liability ini the event of ani accident or theft. Iti is a contract betweeni the insurer (the cari insurance company you purchasei the policy from) andi the insured (the policyholder).i Once the contract isi signed, you pay thei premium, and the insurancei company agrees to payi your losses as definedi in your policy.

In India,i while every car owneri has basic or third-partyi insurance, as it isi a legal requirement, noti all opt for ai comprehensive insurance policy ori add-on covers or riders.i The add-ons come ini handy when you needi compensation for specific reasons,i such as replacing worn-outi parts. Usually, these particulari requirements are not coveredi in the standard ori comprehensive plans, or youi do not get thei total value of thei parts. It's essential toi pick the suitable add-oni covers in car insurance.i Before we learn abouti add-on covers, we musti know what basic ori third-party and comprehensive policiesi offer policyholders.

Third-party insurance

Third-party insurancei is the most basici cover and the legali minimum in India. Iti only covers damage toi a third party involvedi in the accident, whetheri it is another vehiclei or a person. Iti does not cover thei cost of repairing ori replacing your car.

The Motori Vehicles Act of 1988i makes it mandatory fori all vehicles plying oni Indian roads to havei a third-party motor insurancei policy. If you don'ti have valid car insurance,i you may be prosecuted,i or your driving licencei may be suspended tilli the time you renewi your policy or purchasei a new one.

Depending uponi how much you arei willing to pay, ai comprehensive policy may coveri vandalism, theft, fires, rains,i hails, natural disasters suchi as earthquake, floods andi storms, and falling objectsi such as tree branchesi or debris.

What is comprehensivei car insurance?

Besides providing thei same cover as third-partyi insurance, comprehensive car insurancei protects the vehicle owneri from losses should theiri vehicle be damaged ini an accident or duei to a natural calamity.

Mosti car owners believe thati a comprehensive car insurancei plan is enough toi deal with eventualities suchi as accidents or naturali calamities and don't needi add-on covers. Although cari insurance is a personali choice, experience shows beingi pennywise and pound foolishi does not help. Fori those who own newi and expensive cars andi where the car ownersi have run out ofi warranty, it is alli the more prudent toi go for adequate coverage,i even if it meansi paying a little more.i Let us understand howi add-on covers in motori insurance will give youi value for your money.

comprehensivei insurance plan may missi out on several cruciali liabilities and may noti provide the complete insurancei coverage that your vehiclei may need. It usuallyi does not include damagesi caused by ageing andi wear and tear ofi your car. The plani also does not protecti your vehicle from ai depreciation of its valuei over the insurance period.i Here, a zero-depreciation coveri in your comprehensive cari insurance will help.

Car sparei parts insurance

The comprehensive cari policy often does noti include replacing parts, eveni if it may includei servicing. Most car partsi have a definite lifespan,i or car spare partsi expiry, and need replacementi regularly after they weari out or start malfunctioning.

Ini a car accident, mosti insurers provide for thei cost of, what theyi call, reasonable repairs, leavingi out the spare partsi if it is ai comprehensive plan. If somei plans offer replacement ofi components, you may neveri get the original parts.i The original spare partsi of any vehicle couldi cost you a bomb,i and the more sophisticatedi a car is, thei more expensive its sparei parts will be. Thisi is where the sparei parts add-on comes toi a car owner's rescue.i You get the valuei for your money, i.e.,i premiums paid for add-ons.

Cari spare parts cover isi not the only add-oni that you should goi for if you wanti to be ahead ofi times and protect yourselfi from an unwanted burdeni on your pocket. Thei best way to findi out what add-ons youi need is to seei the exclusions in youri policy and then assessi if you need insurancei for the missing liabilities.

Herei are some of thei add-ons you should consideri to enhance your cari insurance:

Zero depreciation or nili depreciation cover

 When settling youri claim, the insurer onlyi covers the current marketi value of your car,i not the price youi bought it for. Thei gap between the car'si original price and whati the insurer offers youi as an insurance claimi is a depreciation. Ifi you purchase the zeroi depreciation or nil depreciationi add-on, the insurance company,i and not you, willi pay for the depreciatedi parts of your car.i Considering the condition ofi Indian roads and weather,i a car owner musti not take the riski of ignoring this valuablei add-on in car insurance.

Enginei protection

 The engine is thei most crucial part ofi a vehicle and thei most expensive one ati that. It is youri car's head and braini combined. So, it deservesi special protection. Unfortunately, comprehensivei car insurance does noti cover damage to thei engine or its partsi except those occurring duringi accidents. The triggers fori engine damage or failurei are many, so iti would be a badi idea to miss outi on this valuable add-on.

Additionali accident cover

 The owner-driver musti get the basic personali accident cover while purchasingi insurance for the car,i but if you wanti to insure the hiredi driver or passengers ofi the vehicle, you needi to opt for thei add-on personal accident cover.

Noi claims bonus protection

 It's ai good idea to payi an extra premium toi protect your no-claims bonus.i The no-claims bonus isi usually is a substantiali amount. By purchasing ai no claims add-on, youi can file for insurancei claim and at thei same time keep thei non-claims bonus untouched.

Car insurancei needs your full attention

Wei spend so much time,i energy, and resources researchingi the models, sturdiness, colours,i and safety features beforei picking the ideal car.i But we don't showi even a fraction ofi the same enthusiasm fori choosing car insurance.

Try toi get the best possiblei coverage for the cheapesti premium, but remember, thei cheapest may not necessarilyi be the best.

Get ini touch with Liberty Generali Insurance for a ready-madei solution to all youri car insurance needs.

Disclaimer: Fori more details on riski factors, terms & conditionsi please read sales brochurei carefully before concluding ai sale. *The discount amounti will vary subject toi vehicle specification and placei of registration