How much is the cheapest car insurance in India and what is the coverage?
Owning a car in India brings with it a sense of convenience and freedom. However, to ensure a smooth and worry-free driving experience, car insurance is an absolute necessity. The market offers a plethora of car insurance options, but for budget-conscious car owners, finding the cheapest car insurance in India is a top priority. Let us delve into the options for the cheapest car insurance in India and explore the coverage they provide, to help you make an informed decision.
Third-Party Car Insurance:
Third-party car insurance is the most basic and mandatory form of coverage required by law in India. This type of insurance protects you against any legal liabilities arising due to bodily injury, death, or property damage caused to a third party in an accident involving your car. While third-party insurance is the cheapest option, it does not provide coverage for damages to your own car or injuries sustained by you in an accident.
Comprehensive Car Insurance:
Comprehensive car insurance is a more extensive and popular option among car owners in India. While it offers a broader coverage spectrum, it comes at a higher cost than third-party insurance. Despite this, some insurance providers offer competitive rates and can still qualify as one of the cheapest car insurance options.
Coverage provided by Comprehensive Car Insurance:
- <h4>Own Damage Cover:</h4> This covers the repair expenses for damages to your car caused by accidents, natural disasters, theft, or vandalism.
- <h4>Third-Party Liability Cover: As mentioned earlier, this covers the legal liabilities arising due to injury, death, or property damage caused to a third party.
- <h4>Personal Accident Cover: Comprehensive car insurance also provides a personal accident cover for the owner-driver, offering financial compensation in case of disability or death caused by an accident involving the insured vehicle.
- <h4>Add-On Covers: While add-ons increase the premium slightly, they enhance the coverage substantially. Common add-ons include zero depreciation cover, roadside assistance, engine protection, and consumables cover.
Factors Affecting Premium Rates:
The cost of car insurance is not fixed and varies based on several factors:
- Car’s Insured Declared Value (IDV): The IDV is the current market value of your car and plays a significant role in determining the premium. The higher the IDV, the higher the premium.
- Car Model and Age: The make, model, and age of your car can influence the premium. Older cars may attract lower premiums, while luxury or high-performance vehicles may come with higher premiums.
- No Claim Bonus (NCB): Insured individuals who have not made any claims in the previous policy year are eligible for NCB discounts on their premiums.
Location: The city or area in which the car is registered affects the premium due to varying risks associated with different locations.
Car insurance is not just a legal obligation but a crucial aspect of responsible car ownership. Although third-party insurance is among the options for the cheapest car insurance in India, it provides limited coverage. Comprehensive car insurance, on the other hand, offers extensive protection and can still be affordable if you explore various insurance providers and utilise discounts effectively. At Cholamandalam car insurance, we encourage you to remember to assess your needs and the coverage offered and compare quotes from different insurers to find the cheapest car insurance policy that meets your requirements. Educate yourself on the various options using the information on the Cholamandalam car insurance website. When you pick a plan, opt for the best coverage & purchase as per your needs.
Drive safe and drive insured!