Knowledge Centre

Know Your Personal Car Insurance

While most of us dream of a owning a car, we rarely think about the risks that come with the ownership of a personal vehicle. Accidents can happen despite your great driving skill. With driving conditions – conditions of roads, general disregard for pedestrian rules etc. – not always favourable, injuries can happen to yourself or someone else while you drive your car. Even loss/stealing of cars are not rare. There are many other risks like damage to the property of the third party etc., and all of these risks mean financial burden on you as the owner of the car. When you invest a modest fortune on your car, it is important to invest a little more to protect your prized possession from all potential risks.

A Car Insurance or a Private Car Insurance is essential when driving a car. In fact, a Car Insurance has to be the first thing that you buy after your car. A financial safeguard for a large variety of situations, Car Insurance becomes one of the most important purchases you will make.

Shielding your car against various perils is a smart thing to do. As per law in India, the Motor Third-Party Insurance is mandatory, without which the owner is subject to penalty. While mandatory, a Car Insurance is not just a means of abiding to the Motor Vehicle Act, but it is important to protect your car against the various other risks that you could run into. Here’s a brief guide on what all gets covered under a Car Insurance.

Loss or Damage to the Vehicle: Irrespective of anyone’s mistake, accidents do happen and they cause damage – small or major – to your car. A Standard Car Insurance has this risk well covered with benefits that help you bear the cost of repairing and getting your car back on the road. A Standard Car Insurance provides cover against the man-made perils such as theft/burglary, riot, strike, malicious act, terrorist activity, damage as well as the damage occurred due to the natural calamities like earthquake, fire, flood, storm, hurricane, landslide, lightning, inundation landslide or rockslide and many more. In case your vehicle suffers damages due to any of such eventualities; the insurer compensates you for the financial loss. Most Car Insurance companies offer cashless facility at their network garages across the nation. This makes it easy to settle your claims instantly.

Third Party Liability: While you have option not to insure your vehicle against the loss or damage to the vehicle, cover for Third Party (TP) liability is mandatory under the Motor Vehicle Act.Hence, a Car Insurance policy offers cover for such a mishap by default. The policy covers your legal liability arising out of an Injury / Death of a third party and Property damage of a third party in case of an accident involving your vehicle. The compensation for the Third Party property damage is limited and for bodily injury it depends on the situation.

Personal Accident Cover: A Car Insurance Policy also provides for a mandatory Personal Accident Cover for the Owner Driver for specific amount (Rs 2 lakh in case of HDFC ERGO) covering accidental death and permanent total disability. It also covers the named and unnamed passengers up to the seating capacity of the vehicle and paid driver.

The coverage for your vehicle depends on the manufacturer’s listed selling price less depreciation for each year or the IDV (Insured’s Declared Value). The IDV is the maximum amount payable in the event of a claim for total loss / theft.

HDFC ERGO General Insurance Company offers a comprehensive Personal Car Insurance policy that covers you from most risks that come with your car. With HDFC ERGO’s Personal Car Insurance policy you can avail:

  • Cashless claim service over 1600+ authorized network of garages across India

  • A host of discounts – No claim bonus, Discount for Automobile Association Members

  • Comprehensive support through its dedicated customer support team

  • Service sans lengthy procedures

  • Instant Online Policy

To know more about our Car Insurance Plans and its benefits CLICK HERE

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