All About Four Wheeler Insurance in India

Four Wheeler Insurance Guide - BimaBandhu

Owning a personal vehicle is no less than an achievement in life. As per our income and needs, we all want to spend money on buying the most suitable vehicle and then upgrade to the new models with time. But if there is anything that many people in India worry less about, it is four wheeler insurance purchase. The statistical data about the insurance penetration in our country says a lot about the need to spread awareness about different types of insurance policies.

At BimaBandhu, we are committed to providing in-depth information about different facets of insurance buying. In this blog post, we will cover four wheeler insurance in detail, hence helping you make the right insurance-buying decisions.

What is Four Wheeler Insurance?

Four wheeler insurance, as the name suggests, is an agreement between the insurance provider and the owner of a four-wheeler vehicle. This agreement offers financial protection in case of losses incurred due to unforeseen events such as natural calamities or accidents.

Many people in India perceive this type of insurance as a piece of paper to be used when asked by the traffic cops. However, it is much more than that and is meant to protect you financially in case of loss or damages related to your four wheeler vehicle.

The need for four wheeler insurance can be realized from the very fact that you might meet with an accident and end up paying for hefty repair bills no matter how carefully you drive. 

Types of Four Wheeler Insurance

Mainly, there are two types of four wheeler insurance policies:

  • Third-party four wheeler insurance

This policy protects you from facing the financial implications when your insured vehicle accidentally causes damage to a third-party property/vehicle or results in injuries to a person. While it does cover third-party damages, it does not pay for the damages that might occur to your insured vehicle. 

As per Motor Vehicle Act, it is mandatory for vehicle owners to have a valid third-party insurance policy. 

  • Comprehensive four wheeler insurance

Unlike third-party four wheeler insurance, comprehensive insurance policies protect against any financial damage to your car resulting from accidents, theft, or natural disasters. These policies include third-party liability cover, which means you do not need to buy a third-party insurance policy for your vehicle in addition. Besides this, you can opt for a personal accident cover as a rider that also provides benefits for personal injuries resulting from an accident.

You should also know that it is up to you to decide if you want to buy only a third-party insurance policy or a comprehensive one as per your needs. Since third-party insurance comes with limited coverage, it is advisable to opt for comprehensive coverage for your four-wheeler vehicle.

Key Features of Four Wheeler Insurance Policies

  • Affordable insurance premiums
  • Claim assistance
  • High claim settlement ratio
  • Cashless repair facility
  • Own damage cover
  • Third-party damage cover
  • Add-ons to be included above the base policy
  • No Claim Bonus (NCB)
  • Easy to buy or renew four wheeler insurance online

Note: The exact features depend on the specific policy you purchase.

Why Do You Need Four Wheeler Insurance?

Buying a four wheeler insurance policy is necessary to offer protection to your car during various situations that can lead to financial losses. In simple, you must buy insurance for your four wheeler vehicle because:

  • It is mandatory to buy third-party insurance for all vehicles. Without a valid policy, you would have to pay fines for violating traffic laws.
  • It offers protection from third-party liability.
  • It provides coverage against vehicle theft and compensates for the losses
  • It includes own damage cover depending on the terms of policy you purchase
  • You can avail of a personal accident cover of up to Rs. 15 Lakhs as per IRDAI guidelines
  • It also covers damages resulting from floods, storms, and other natural calamities.

What to Consider While Buying Four Wheeler Insurance?

The process to buy a four wheeler insurance policy starts with doing a bit of research and selecting the one that caters to your individual needs and budget. Here are some crucial points you should keep in mind at the time of buying this type of insurance policy:

  • Choose between a third-party liability cover or comprehensive insurance cover for your vehicle.
  • Look at the finer details of the policy and compare different options based on their features, benefits, and price.
  • Consider the availability of four wheeler insurance add-ons.
  • Select the IDV or Insured Declared Value carefully.
  • Look at your insurer’s network of authorized garages where you can avail cashless claim facility.
  • Check the insurer’s claim settlement ratio.

What are the Types of Four Wheeler or Car Insurance Policies?

Most insurance companies in India offer three different types of four wheeler insurance policies to address the specific needs of vehicle owners. These include:

  • Comprehensive vehicle insurance policy
  • Standalone own damage four wheeler insurance policy (applicable to vehicles bought after Sep 2018)
  • Standalone third-party vehicle insurance policy

Third-Party Vs. Comprehensive Four Wheeler Insurance – Comparison

To select the right vehicle insurance policy for your needs, you need to know the difference between the two primary types of vehicle insurance policies. Let us help you there with this comparison table:

Comprehensive Third-Party
Definition An insurance policy for all-inclusive for your vehicle, including third-party liability and own damage cover Basic insurance coverage to protect you and your vehicle from third-party liability in case of an unforeseen event
What Does It Cover? It provides coverage for damages to your car resulting from accidents, natural or man-made disasters, along with third-party liability. It only takes care of third-party damages.
Related legal law It is up to you to decide if you want to buy this coverage. Third-party insurance purchase is legally mandated.
Cost Comparatively higher than third-party because of the benefits offered Low
Add-ons available Yes Insurance cover cannot be enhanced with add-ons.

Inclusions and Exclusions of Four Wheeler Insurance Policies

In general, a four wheeler insurance policy covers several circumstances such as:

  • Car theft
  • Damages to your vehicle due to man-made calamities like fire, riots, etc.
  • Damages due to natural disasters
  • Damages resulting from a road accident
  • Damages incurred while moving your vehicle from one location to another
  • Personal accident coverage for owner-driver

Similarly, these policies do not cover the following situations:

  • Damages resulting from driving a vehicle without a proper license
  • Damages to the vehicle outside India
  • Damages faced while driving under the influence of drugs or alcohol
  • Wear and tear due to regular usage
  • Maintenance cost of the vehicle
  • Damages resulting from the negligence of owner-driver
  • Use of private vehicle for commercial purpose
  • Damages resulting from speed racing, etc.
  • Damages occurred because of war-like situations

Note: The exact details of the inclusions and exclusion vary from one policy to another. Hence, it is advisable that you read the policy documents carefully.

Four Wheeler Insurance Add-ons

Four wheeler insurance add-on covers are additional benefits you can add to your policy to enhance the base coverage offered. The number of add-ons available with a four wheeler insurance policy depends mainly on the chosen insurer. 

Given below is the list of common add-ons available:

  • No Claim Bonus Protection
  • Repair of Glass, Fiber, and Plastic Parts
  • Roadside assistance cover
  • Daily allowance cover
  • Emergency transport cover
  • Key-replacement add-on
  • Engine secure cover
  • Tyre secure add-on
  • Consumable expenses add-on
  • Loss of personal belongings
  • Zero depreciation cover
  • Return to invoice cover

How to Buy/Renew Four Wheeler Insurance Online?

These days, you can easily buy or renew an insurance policy for your four wheeler vehicle online. Most insurers now offer their policies online and have made it easier for their customers to buy the right policy. Besides this, you can also buy the policy from insurance aggregators. 

Given below are the common steps to buy or renew a four wheeler insurance plan online:

  • Enter the registration number of your vehicle along with other basic details in the online form as prompted on the screen.
  • Choose from the plans available to buy or renew your policy.
  • Select adequate coverage along with add-ons (if any).
  • If you are satisfied with the quote, pay the premium online.

Learn About Various Facets of Four Wheeler Insurance at BimaBandhu

While there are so many types of car insurance policies available in the market, the right selection depends on how much you know about this type of insurance. Read BimaBandhu – the one-stop destination  to get insurance gyan. Here, you can find comprehensive guides about different types of insurance. Learn the basics first and then make an informed insurance-buying decision. 

 

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