Car Insurance Terms You Must Know Overview
Learn about these some important car insurance terms
It is essential to understand the different terms of four-wheel vehicle insurance so that you can purchase the correct insurance policy for your four-wheel drive vehicle. Here are some important auto insurance terms you should know before buying an insurance policy:
- Third party liability insurance
Third party liability insurance is mandatory for every vehicle owner to driving legally on Indian roads. Four wheeler insurance provides financial protection against third party liability in the event of a road accident on the insured vehicle. Third party liability insurance provides unlimited coverage for third party death and injury. It also covers third party property damage limited to Rs. 7. 5 lakhs. If you own a car in India, you should at least have a third-party car insurance policy.
- Comprehensive coverage
Comprehensive insurance is the another type of coverage offered in auto insurance. This insurance isn't mandatory, but it is recommended as it provides comprehensive coverage for car owners. A comprehensive auto insurance policy covers damage to the insured vehicle and property. The policy holder is compensated if the insured vehicle suffers loss due to road accident, natural calamity, man-made calamity, theft, fire etc., as well as if it is seized by a third party. If you need a wide coverage on your vehicle, than you can opt for comprehensive insurance.
- Car insurance premium
A premium is a amount that you must be paid to purchase a car insurance policy. In the other way, it is the price you pay for a car insurance policy to protect your car from any of the accident while driving on roads. Before buying an insurance policy for your quad, you should compare car insurance premiums offered by different insurance companies on sites.
- Personal Accident Insurance
Personal accident insurance is a mandatory coverage offered by insurance companies to render financial security to the owner/driver of the vehicle. Indemnifies the owner/driver for accidental injury, disability or death. It is only mandatory for the owner/driver, but can also be purchased as additional insurance for other passengers by paying an additional money.
- No claim for reward
No Claim Bonus is another important auto insurance policy. This is a deduction on your renewal premium if you do not make a claim within the term of the policy. You can get a discount from the National Commercial Bank of up to 20% to 50% if you have not made a claim for 5 consecutive years of the policy. Also, if you renew your quad bike insurance policy from another insurance company, NCB is transferable.
- Cashless garages
A cashless garage is an authorized network garage of the insurance company that bought the insurance policy. With a cashless garage, you can get your car repaired without having to pay the repair cost out of pocket. Once the repair is complete, the insurance company pays the repair bill to the cashless garage and your claim is settled. Cashless garages are an advantage because they are licensed and less complicated when it comes to maintenance requests.