Home Motor Insurance Monsoon-Ready Car Insurance: 6 Terms to Be Familiar With

Monsoon-Ready Car Insurance: 6 Terms to Be Familiar With

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Car Insurance

Introduction:

As the monsoon season approaches, it’s crucial to ensure that your car is adequately protected with the right insurance coverage. Navigating the complexities of car insurance can be challenging, but understanding some key terms will help you make informed decisions to safeguard your vehicle during this unpredictable weather. In this blog, we’ll explore six essential car insurance terms that every car owner must know during the monsoon.

Comprehensive Coverage:

Comprehensive coverage is your best defense against the monsoon’s wrath. This type of car insurance offers protection for damages caused to your vehicle due to natural disasters like floods, as well as non-collision events, including theft, fire, and vandalism. With comprehensive coverage, you can have peace of mind knowing that your car is shielded from the various risks that come with the monsoon season.

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IDV, or insured declared value

In the event of a total loss (a car that is damaged beyond repair) or if the automobile has been stolen, this is the most money you will be able to get from your insurance provider. It might be compared to the sum assured under your health or life insurance policy.

A standard depreciation rate is applied to the car’s ex-showroom price by insurance firms to determine the IDV. The IDV decreases as time goes on along with the car’s value depreciation. Your auto insurance policy schedule, which also lists your policy premium, makes the IDV available.

Insurance for owner’s personal accidents

Under auto insurance, this is also a need. According to IRDAI (Insurance Regulatory and Development Authority of India) regulations, each car owner is required to have a personal accident policy of Rs. 15 lakh. If you choose to include this coverage as a part of your auto insurance plan, the IRDAI has set the cost at Rs 750. Paying a higher fee, if desired, will allow you to choose a larger cover.

You should be aware that if you own multiple vehicles, you do not need to purchase personal accident coverage for each vehicle’s individual insurance policy. Only when you acquire your first car will you be required to purchase this coverage? You also don’t need to get bundled coverage with your car insurance if you already have a standalone personal accident policy (not included in any policy of auto insurance).

If you sustain an accidental injury, a personal accident insurance policy might assist you in paying your medical bills. Additionally, it offers financial compensation in the event of your permanent handicap and to your family in the event of your accidental death.

Deductible:

Understanding your insurance deductible is essential when filing a claim. You agree to pay a certain amount out-of-pocket before your insurance coverage begins. This is known as the deductible. For instance, if your deductible is $500 and the repair cost is $1,500, you’ll pay $500, and the insurance will cover the remaining $1,000. Choosing a higher deductible may lower your premium but be sure to consider your financial capability in the event of a claim.

Third-Party Liability:

Rainy conditions can lead to slippery roads and increased accident risks. Third-party liability coverage protects you against legal liabilities arising from damages or injuries caused to other people or property due to an accident involving your vehicle. This coverage is crucial during the monsoon season when accidents can be more common.

No-Claim Bonus (NCB):

A no-claim bonus is a reward for being a responsible driver. If you haven’t made any claims during your policy period, you’ll be eligible for an NCB, which typically results in a discount on your premium during renewal. Accumulating NCB can lead to substantial savings over time, encouraging safe driving habits.

Roadside Assistance:

The monsoon season brings with it the risk of car breakdowns. Roadside assistance is a valuable add-on to your car insurance policy. It provides help in case of a breakdown or emergency while driving, such as towing, battery jump-start, flat tire assistance, and even fuel delivery. With roadside assistance, you can have a safety net during your monsoon journeys.

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Zero Depreciation Cover:

During the monsoon, the likelihood of damage to your car’s parts increases significantly. A zero depreciation cover is an add-on to comprehensive coverage that ensures full reimbursement for car parts replacement without considering depreciation. This helps in getting higher claim settlements, especially for newer vehicles, and protects you from the impact of depreciation on your claims.

Conclusion:

As the monsoon season poses several risks to your car, understanding these six essential car insurance terms will equip you with the knowledge to protect your vehicle effectively. Choosing the right coverage and add-ons will provide you with the confidence to face any challenges that come your way during the rainy season. Prioritize responsible driving and comprehensive coverage to stay safe on the roads this monsoon.

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