How to choose the right vehicle insurance policy?

transcorp vehicle insurance

Our world is finite and small. However, the population and the status of living are both on the rise. This is leading us to a time when vehicles are a necessity instead of a luxury. In this world where everyone owns a car, convenience is a norm. However, alongside this, the rate of accidents is also increasing. 

Companies in the automobile manufacturing sector are increasing controls on safety. Every new car has a better safety net, designed to keep you safe. However, once you’re in an accident, financial loss is inevitable. Thus, getting a vehicle insurance policy is essential! Without vehicle insurance, you have to incur twice the loss during an accident. Come let’s dive into vehicle insurance and how it works!

What is vehicle insurance?

Vehicle insurance works like any other insurance across the world. However, this insurance policy directly deals with damage to your car and you, due to accidents, or theft. Insurance for vehicles covers damages that are caused due to tangible and unforeseen events. A vehicle insurance policy is geared to provide financial protection, offer protection for auto lenders, and protect the passengers. 

The different types of insurance policies

We often have different reasons for owning a car. Some of the most common reasons are personal use, business use, etc. For diverse needs, insurance companies in India have arranged a wide range of vehicle insurance policy offerings. Let’s take a look at the five distinct types of insurance plans available in the country!  

  1. Third-party liability only plan – The third-party liability only plan is mandatory as indicated by the government. If you get this insurance you’ll be covered for the cost of repairs and replacement damages to the vehicles of a third party. Additionally, this plan covers the cost of treatment and hospitalisation of third parties and liabilities that arise out of damage incurred by third parties. The sum the insurance covers need to be an amount that helps avoid out of pocket expenses.

  2. Collision or Own Damage Cover – This insurance is a bit different. It reimburses the cost of repairs that your vehicle needs after getting damaged. The insurance declared value and the age of a vehicle are taken into account for cost determination.  For people who own a vehicle that’s on loan, this cover is essential. It helps you prevent unnecessary complications and pocket expenditure.

  3. Personal Accident cover – Accidents don’t only cause damage to vehicles. In the unfortunate event of personal injuries, personal accident coverage can help you. This vehicle insurance policy is designed to cover any medical expenses that you may incur upon meeting with an accident in your vehicle.

  4. The Zero Depreciation Policy – This policy is generally an add-on to insurance in India. The purpose of this insurance is to negate depreciation value. For instance, if you need to replace car parts due to damage, the insurance company generally covers the cost after adjusting for the depreciation of those individual parts. However, with this policy, the company reimburses the gross amount of the parts, in their original condition, with no depreciation accounted for. The reason we suggest opting for this add on is new parts for your car will not come at a depreciated value.

  5. Comprehensive cover policy – A comprehensive policy lives up to its name by covering most of the aspects of insurance!  It includes third-party liability, personal vehicle damage, personal accident cover, and non-collision damage due to natural events. Such events may be floods, fires, theft, etc. You can also apply a range of add-ons to your comprehensive cover policy as you deem fit!

So how do you choose the correct insurance plan?

We’ve informed you of the different situations where insurance is essential. Thus, while choosing a plan, the first thing you need to decide, is what coverage you need. Personal vehicles are better off with comprehensive plans, while third party liability is good for commercial vehicles. Keep your choice affordable and choose plans according to who uses your vehicle. If your family does too, then getting a family plan is beneficial. Choosing a plan with lifetime renewability saves you trouble in the long run. 

It’s recommended you compare quotes before going for insurance. Additional details you should check are the network hospital coverage provided by the insurer and the claim settlement ratio. The higher the ratio, the better an insurer is. We recommend checking out Transcorp International Limited (TIL). They’re a leading vehicle insurance policy provider in India. The company has a stellar track record and can help you find the right plans. They also offer a suite of services related to tourism, FOREX, finance etc. You can check out their website for more information. Get yourself an insurance policy that suits your needs and enhances your safety today!