Insurance What Kind of Online Third Party Car Insurance Policy Should You Buy For Your Car? Posted on October 17, 2018 9 min read 0 1,730 If you end up buying car insurance in haste, it implies not having adequate protection cover during an accident or damage. It is advisable to check out online insurance details and then make the right choice by comparing several parameters including costs. Car insurance can be defined as a contract between you and your insurance company wherein the insurance company will cover you against financial losses due to damages to the car. Many car owners buy car insurance as a formality without giving it a proper thought. Each car insurance coverage has its place on certain policies. Not that just, you should also be aware of all the facets of car insurance before finalizing a product. You should know the insured declared value of your car, and also remember that car insurance premium is linked to location and cubic capacity of the vehicle. Often, the sole deciding factor while picking a third party car insurance online product is low premium cost. It is only applicable in situations where the damage has been caused due to an accident, a natural calamity, or any liability that can result due to an accident or theft. Car insurance policies can be of two types: Third party/liability only insurance policy- a third party or a liability motor insurance cover is mandatory in India. This policy provides financial coverage in case you accidentally damage others or their property in an accident. Comprehensive insurance policy- This offers coverage for you and your vehicle, along with the third party. Comprehensive motor insurance is always the best choice in order to keep you covered from most financial liabilities in case of any accidents or damages to the vehicle. Besides these basic covers, this policy also promises some additional benefits to the customer by the motor insurance company. These are known as add on covers. Some add-on covers include- a.) 24×7 spot assistance: this can prove to be of great help when you are driving through a lonely road and suddenly your tyre is punctured. To opt for this cover, you can simply call on the toll free number and the motor insurance company will reach out to you. This add on cover offer facilities like towing, fuel assistance, accommodation and taxi benefits. READ 8 Tips for Worldwide Travelers Health Insuranceb.) Engine protector: thanks to this cover, you need not worry when suddenly in the midst of a busy road, you find out that your car’s engine has been damaged due to lubricating oil leakage or water seepage on a rainy day. This cover will go a long way in saving you from financial losses should there be such accidents. c.) Lock and key replacement cover: it may so happen that you misplace your keys accidentally while running errands. This add on cover will indemnify the cost of replacement keys, thus freeing you of the worry of arranging new set of keys. This cover also pays for the new lock in case it is damaged. The following tips should be considered when buying car insurance policy- Third party insurance is mandatory. This is compulsory according to the Indian Road Safety Act and Indian Motor Vehicles Act. It is typically provided by your dealer and the premium costs would be factored into your vehicle purchase price. Always have an idea of the coverage offered in third party insurance plans- This will ensure that you get coverage against the injuries to any third party, his/her property and his/her vehicle. This will cover claims for damage caused to a third party including claims for grievous injury, disability, or death. Seek comprehensive cover for better protection- it will not only offer protection in case of accidents, but also against any accidental fires, thefts, and other damages as per the selected insurance plan. Seek additional covers based on risk profile. Do not overlook personal accident cover. Bundled car insurance can help save money. Opt for voluntary deductibles. Think twice about dealer insurance. Author Bio: Sidharth Kapoor is a well-known financial insurance advisor with the abilities to keep a track and predict the market trends with the utmost accuracy. He has done PGDBM in finance. He has worked on different financial sectors dealing with the entire range of Insurance like Health Insurance, Life Insurance, Car Insurance and personal accident insurance. He is also an expert in writing many finance related articles and blogs.