Types of automobile insurance and how to avail free quotes online

One of the important things about having a car is the car insurance policy that comes with it. Unfortunately, if you don’t have a background in financial services, you may not understand the pros and cons of car insurance.

There are many different types of car insurance, and knowing a bit about it can be very useful indeed, especially if you are interested in getting online automobile insurance quotes.

A Step in the Right Direction

Here’s a little story about Raju, a software engineer who owns a high-end SUV. It was always Raju’s dream to own a big car. So, when he landed his dream job in a Fortune-500 company, he had the disposable income to realize his dream and bought an expensive SUV.

Raju enjoyed driving his new SUV for about a year. Then, when his insurance was due, he went to the showroom where he had bought his car to renew his insurance. He was shocked at how much the premium came to, but he paid the insurance guy anyway and forgot about it for a year.

The next year, when his car insurance was about to fall due again, as suggested by a friend, Raju decided to shop around a bit to see if he could get a better deal from another motor insurance company.

Raju was surprised at the number of companies and the different types of car insurance policies available. But after a bit of research, he found a reliable provider that gave him a good discount with no additional fees on his transfer-in to the new company from the old one.

Like Raju, you can also find a good deal with your car insurance if you do a bit of shopping around. Let’s look at the different types of Auto Insurance available and how you can avail of free quotes online.

When you talk about car insurance in India, there are quite a few categories and coverage classes, overlapping. There are two classifications – types of insurance coverage and types of car insurance policies. Let’s take a look at each category:

Types of Car Insurance Coverage

Under the head “types of car insurance coverage, there are five broad categories that we can consider:

1. Liability Coverage

Even if an accident that occurs is your fault, you can get covered for damages under liability coverage. This type of coverage covers repair or replacement costs for the damaged property, medical bills, and hospitalization.  

Liability coverage also covers the third party’s damage to property, injury, or death. This category of insurance coverage is mandatory in all car insurance policies as per the Motor Vehicle Act, 1988.

2. Own Damage Coverage

With own damage covers, your motor insurance company covers the cost of repairing your car after the accident. In extreme cases, the cost of repairs may exceed the cost of the vehicle. Under such circumstances, the company pays the current market value of the car.

3. Personal Accident Coverage

Personal accident coverage secures the cost of treatment of injuries and other associated costs related to the accident. No matter whose fault it was, the company will pay depending upon the severity of the accident.

5. Comprehensive Insurance Coverage

We mean any risk associated with your car i.e. own damage and its occupants or a third party and the property associated with it by comprehensive insurance coverage. As the name suggests, this type of coverage is comprehensive and covers many aspects like damage due to weather, floods, fire, and theft.

It covers all aspects of your car other than damage due to collision. You can decrease your premium cost by installing anti-theft and safety devices in your car.

Types of Car Insurance Policies

You can buy three types of auto insurance policies for your car – a third-party insurance policy, comprehensive insurance policy, and add-on insurance coverage.

Third-party Insurance Policy

This type of insurance policy is the most affordable type, which covers bodily injury and death. It also covers the damage to the vehicle or property of the third party. It fulfils the legal requirements of needing to have a car insurance policy in place.

A third-party insurance policy is the most suitable for covering an old vehicle. The drawback of this type of policy is that it only covers the owner’s vehicle and its costs. The motor insurance company will not pay the repair costs of your own vehicle.

Comprehensive Insurance Policy

The range of options for a comprehensive insurance policy, as the name suggests, is wider. It covers accidental damage to a third party’s vehicle and also other risk factors. You will be covered even if the accident was your fault.

You will be covered for artificial and natural disasters. Comprehensive insurance policies are the most expensive form of insurance.

Add-on Insurance Cover

Also known as riders, you can get additional benefits for paying a nominal extra amount when you pay your premiums. Add-on insurance cover includes roadside assistance, engine replacement, and zero-depreciation cover, among others.

Getting Insurance Quotes Online

Now that you know about the different types of automobile insurance you can get, why not get onto the net and pull up a few online automobile insurance quotes for your car? You can follow the steps given below:

• First, find a car insurance calculator. There are several available on the net. Select one and start entering your details.
• Enter your car registration number.
• Now add the make and model of the car.
• Next, you have to select the fuel type.
• Then you have to enter the year of your car’s registration.
• Finally, a one-time password (OTP) will be sent to your mobile phone by entering your name and mobile number.
• Enter the OTP and click on “View Quotes.”
• You also can choose the option to receive your quotes through WhatsApp.
• The last entry is to key in the expiry date of your latest insurance policy.
• Now click on “Confirm Details.”
• The automobile insurance quotes of various insurance companies will populate your screen. In addition, you can see the premium values of comprehensive and third-party policies. You can also tick boxes that offer certain add-on riders.

Conclusion

So, like Raju, now you know more about car insurance, you too can shop around a bit to get the best rates in car insurance. And, since auto digital insurance is the trending way to deal with insurance, you could also do it online.

As you have seen here, getting online insurance is quick and easy when you know how to. So, get some quotes off the internet and try renewing your auto insurance online the next time it falls due.