We insure our cars to save on expenses in case of an accident. The insurance company pays for the damages caused to the car after the accident. There are many companies in the market which provide insurance for your car, you can get insurance from any company. Before getting insurance, keep some things in mind so that you can buy the right policy for your car. How to know about insurance policy.
There are two types of insurance policies.
- 1st party insurance
- 3rd party insurance
Under the Motor Vehicle Act 1988, it is not mandatory for you to buy 1st party insurance but, it is mandatory for you to buy 3rd party insurance.
1st PARTY INSURANCE POLICY
Damage to the car and its owner are covered by 1st party insurance. This insurance also protects against damages caused by specific events . such as flood, earthquake, strike, fire, or theft.
3rd party insurance
3rd party insurance is bought by the car owner to protect himself from any accident caused by any other party. Under this, the damage caused to any other person or property by the car is covered. 3rd party insurance does not provide any kind of insurance claim to the car or the car owner.
We try to understand 1st party insurance in more depth.
By purchasing 1st party insurance, we can add many facilities. Let’s try to learn about some of the main features and what needs to be kept in mind while buying your insurance policy? So that you can buy a suitable policy for your car. How to know about insurance policy.
- Accessories
- Key Protection
- engine and gear box protection
- Return to invoice
- Consumables add on
- LPG/CNG KIT
Acceseries
The accessories add-on provides insurance coverage for accessories that you attach to your car, including a music player, sound box, door beat, sun visor, and alloy wheels.
Key Protection
With the Key Protect Add On, you also get a claim against vehicle key and immobilizer related damages or key theft or loss.
Engine and gear box protection
You should always make sure engine and gearbox protection add-ons are included in your car insurance policy. This covers all damage caused to your engine and gear box. Along with this you may also get a claim of engine over heating.
For example :- if a stone gets damaged in the underbody of your car while you are driving. If oil or coolant leaks, your vehicle’s engine may seize or overheat. In this situation you can claim your engine.
Return to invoice
If your car is stolen or declared a total loss (if the cost of repairing it equals or exceeds its total IDV after damage) the insurance company will return the amount written on the invoice to you.
Consumables add on
The parts such as engine oil, gear oil, coolant, gas, brake pads, clutch plate, gasket, and ring were used by the mechanic during the car repair. Covered under “Consumable Add On”, which is paid for by the insurance company.
LPG/CNG KIT
The LPG/CNG kit, tank, valve, and other expenses are covered by the insurance company after an accident in an LPG/CNG Add On.
There are many companies in the market which provide the facility of 1st party insurance on cars for 8 to 10 years . The benefits of your vehicle policy start decreasing with the age of the car. After a certain period of time your policy becomes a normal policy and the liability of the insurance company reduces. With the age of the car, the liability of the customer for the expenses incurred on the car increases.
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