What Is Car Insurance | Types Of Car Insurance
Hello friends, you are warmly welcome in this article, you must have often seen that people want to get information about car insurance after taking a car,
so that is why we have written this article. And in this article I have tried to give all the information related to car insurance, if you really want to get information related to car insurance, then I have this request from you.
That you read this article of mine carefully till the end, only then you will understand this article of mine well, so let’s start this article without delay
What Is Car Insurance ?
Car insurance is such a contract between the insurer and the insurance company. In which the vehicle of the insurer is insured. So that the insurance company can provide financial amount for accident or car damage.
In return, the insurer has to pay the premium amount during the time period in the form of premium. If the insurer is lucky! And no claims are made if there is no accident! In this case the premium paid to the insurer is not refunded.
On the other hand, the insurer also gets the benefit of no claim bonus! Hence it is advised that it is better not to claim for minor damages!
Types Of Car Insurance ?
Four Types Of Car Insurance
1) Third party insurance
2) Comprehensive insurance
3) Zero dept. insurance
4) RTI insurance
1. Third party insurance
Third Party Insurance In third party insurance you are not insured. Like if you have an accident. And your mistake causes damage to the car in front. So the other person sues you.
Then if you have third party insurance. So your insurance company compensates all the loss of the front. But in third party insurance, keep in mind that after an accident, your vehicle also suffers damage.
So you have to compensate yourself for its loss. You also have to bear your own loss. In this, the insurance company does not give you any compensation. But if the fault in the same oxidant is not yours. The front has hit your car.
So in this situation, the insurer will compensate you for the entire loss. According to the new rules in our India, every person who has a car must have third party insurance. Otherwise your challan may also be deducted.
2. Comprehensive insurance
Comprehensive Insurance Comprehensive insurance is also called first party insurance. And its premium remains almost like third party insurance. Mostly it remains double than that.
If you have comprehensive insurance, then it benefits you and the other person as well. That means if you have an accident. And your car also gets damaged in the accident. And the front is also the loss of the car.
So there is such a situation that your insurance company also compensates for your car. And your insurance company compensates for the loss of the front. But is 100% doi compensated, it is not so in some situations and not in some situations.
As if metal parts break in the car of you and the front. So the company gives 100% compensation for it. But if the plastic parts, glasses, rubber parts of your car break. So the company compensates only 50% of its loss.
Meaning, if the metal parts of your car are worth 20 thousand rupees, then the insurance company will compensate its full loss. But if your rubber, glasses, and plastic parts are worth 10 thousand rupees,
then the insurance company will give only 5 thousand rupees of your 50. The remaining Rs 5000 will have to be given by you yourself.
3 Zero dept. insurance
The premium of zero debt insurance is slightly higher than that of a comprehensive insurance i.e. you have to pay 30 % more premiums than that of zero debt insurance.
And you can take zero debt in insurance only for the new car. Your car should be disrespectful for 5 years. Meaning if your car is 5 years old, then you will not get this insurance.
If you have zero debt insurance, then the company pays you the full cost of it. But in 1 year only you can claim this insurance for 2 accidents. If you have 3 accidents in the same year. So you have to bear the entire cost of it yourself.
You have to pay for it completely. But even if in the first two accident we have to bear a little cost. For example, the cost of filing, the cost of consumable parts such as oil, nuts, bolts, bearings, all these expenses have to be paid by us.
And also the new parts we put in our car. So the damaged parts remain. So we have to pay this bad parts money to the insured.
4) RTI insurance
RTI Insurance (Return to Invoice Insurance) This insurance has the highest premium. If your car gets burnt in this insurance.
Or it can’t be repaired again. So in this situation, if you have RTI insurance, then the company will compensate you for the entire loss.
That means if the price of your car is Rs. And your car got burnt or can’t be repaired. So the insurance company will give you your showroom price which is Rs.8 lakhs. She will give you as compensation.
But your car must be new. That is, your car should not be more than 2 or 3 years from the date of purchase. Tip; The Comprehensive Insurance Policy of Car Insurance itself comes with zero debt and RTI insurance add-on i.e. in-built insurance features.