What is Car Insurance?

While choosing four wheeler insurance, you can choose between a basic third party liability cover and a comprehensive insurance cover. While having a basic third-party insurance cover is a legal compulsion and covers damages caused only to a third party individual or property, a comprehensive car four-wheeler policy offers more extensive cover that offers protection against accidental damage, damages due to loss and theft, natural and man-made disasters and also offers a personal accident cover. We at TATA AIG also provide varied types of car insurance such as Comprehensive Car Insurance Policy, Stand Alone Own Damage Car Insurance Policy, and Third Party Car Insurance Policy. This array of choices so that you can find the car insurance type that best suits you and your car’s needs.

The policy coverage of your car insurance policy will depend mainly on your needs and your budget. Apart from that, your car’s make and model, the area you live in and other factors will affect the policy coverage. While choosing a suitable insurance policy, you can use the Tata AIG car insurance calculator to calculate and compare the coverage of various policies before making an informed decision.

While you buy car insurance online or renew your policy, you can consider extending or enhancing your policy cover with the help of appropriate add-ons. We offer a set of 19 unique add-ons such as Key Replacement, Return to Invoice, Engine Secure and more, that meet various situations outside the scope of your car insurance policy. A selection of the appropriate add-ons in your car insurance policy can provide an all-round protection to your four wheeler.

The IDV or Insured Declared Value of the car is its current market value. When calculating your car insurance, the IDV is important as it is the amount your car is insured for. In case of “total loss” - complete damage or theft of the car - the policyholder receives the Insured Declared Value when the claim is settled. Always select the IDV carefully as a lower IDV means insufficient compensation in the event of total loss, even though it means lower policy premiums. On the other hand, a higher IDV could mean paying more expensive premiums.

If you want to repair your car in case of minor or major damages, then you could visit your insurance provider’s network garages to have the damages repaired. By doing so, you can avail of the cashless claims, wherein, the insurer will directly pay the cost of repairs to the garage, and you won’t have to splurge exorbitant amounts on your repairs!

Tata AIG’s online Car Insurance Calculator makes it easy for you to compare different four-wheeler insurance policies online. Depending on your budget and requirements, you can choose the insurance amount, the add-ons and then compare different plans to find the appropriate one to protect your car.

The claim settlement ratio of a company is an important factor to be considered while purchasing your car insurance. If your insurer’s claim settlement ratio is high, it indicates a better chance of your claims being settled on time. Similarly, the service offered by the insurance company directly affects customer loyalty and should be checked before you buy a four-wheeler insurance policy from the company.

This refers to the amount of money that the policyholder pays to the car insurance provider on a yearly basis to get the benefits of the car insurance policy.

The coverage is the amount of risk that is covered for an individual through an insurance policy. It includes all the risk factors that the individual or the car (in car insurance) need to be protected against.

The Insured Declared Value or the IDV is the maximum financial amount which a policyholder can receive from the insurance company in the event of the car’s total loss - complete damage or theft.

The No Claim Bonus is the discount on premium offered to the policyholder from the car insurance company for responsible driving and not filing damage claims during the preceding policy year.

The Zero Depreciation Cover (Depreciation Reimbursement) is an add on which helps car insurance policyholders avoid the deduction of the depreciation amount from their sum insured. Without the Zero Depreciation (Depreciation Reimbursement), car insurance companies subtract the depreciation on the car’s parts while settling the claim amount.

Own Damage refers to the damages caused to the insured vehicle and the Own Damage cover helps cover the financial losses incurred by the policyholder due to the damage to their insured car.

This type of cover in a third party or comprehensive car insurance policy offers compensation to a policyholder in the event of disability due to a car accident, with the insured car involved. In case of the accidental death involving the insured vehicle of the policyholder, the compensation is given to the policyholder’s family.

The voluntary deductible is the part of the claim that is paid by the car insurance policyholder and is determined at the time of the policy’s purchase. If the deductible is higher, then the premiums will be lower.

The parts of the car that cannot be reused after being used or consumed, such as the brake oil, nuts and bolts, fuel filter and more, are called consumables.

If you get your damaged car repaired at the network garages of your insurance provider, then the cost of the repair is directly sent to the garage by the insurer. Since the policyholder does not have to handle this expense from their own pocket, this facility is called a cashless claim.