Car Insurance

How to Calculate Car Insurance Premium?

Car insurance price is decided based on several factors. It is also easy to find out the four wheeler insurance premium using an online car insurance calculator. However, the insurance provider takes into consideration the following parameters before fixing the car insurance price.

IDV (Insured Declared Value) of the vehicle

Age and Type of Car

Engine's Cubic Capacity

Geographical zone

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1st Party:- The car Owner

2nd Party:- The insurance provider

3rd Party:- The person towards whom the damage is being done by the 1st party.

Types of insurance:-

Third Party Insurance:-

In the case of Accident it provides coverage againts any property damages, physical injuries or death of third parties if the car owner is at fault. In this insurance, the reapiring cost of our own car is to be paid by owner.

It covers third-party liabilities arising out of:-

Property damages

Damages to the vehicle

Disability Bodily injuries,

and Death of the 3rd party

Third-party car insurance involves lawyers’ help in deciding the amount of compensation to be given under death or disability of third person.

As per the guidelines of IRDAI, while there is no coverage limit in case of death, the property damage coverage is limited up to Rs 7.5 lakh in the case of car insurance. The compensation offered in case of third person liabilities depends on age, income, profession and status of the third person.

What is Not covered under third party insurance:-

Own damage: be it any situation no compensation is provided to the own car.

Drunk Driving: No compensation will be paid by company if owner was driving under the influence of drug or alcohol.

Invalid Licence: No compensation will be paid by company if owner was driving with an invalid driving licence or underage.

Outside of Geographical Limit: If the insured car causes third-party damages or injuries outside the geographical limit as specified in the car insurance policy, it will not be covered.

Unauthorized Usage: A third party liability insurance does not cover any third-party injuries or damages caused while using the insured car for illegal activities, racing, commercial purposes, etc.

Undesiginated Driver: If any individual, other than the owner of the car or the designated driver was driving the vehicle, the resultant damages or injuries to the third party are not covered.(Nedd to ask Question about this)

Substantial Loss : Third party insurance does not cover any accidental loss or damage sustained by the third party, which has accrued from any substantial loss.(Nedd to ask Question about this)

Nuclear Perils : It does not include any liability caused by a nuclear weapon or radioactive contamination directly or indirectly.

War : This insurance policy does not cover any damage, loss, and/or liability caused to the third party due to invasion, war, or any other war-like operations.

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Comprehensive Insurance(1st Party Insurance):-

This car insurance plan provides vast coverage as it not only protects your car against loss or damage caused to a third-party but also covers losses and damages to your car and you. For instance, if your car has faced damages because of flood in the city, then your comprehensive car insurance provides coverage for it.

In short, it provides the coverage for anytype of damages like natural disaters, manmade disaters, road accident etc. This car insurance plan provides vast coverage as it not only protects your car against loss or damage caused to a third-party but also covers losses and damages to your car and you. For instance, if your car has faced damages because of flood in the city, then your comprehensive car insurance provides coverage for it.

But it does not pays the complete money it provides according to given below:

Without any add on:-

Zero Dept(Add-on with comprehensive Insurance plan):-

More Ad-ons on Comprehensive insurance:-

**Owner Driver Personal Accident Cover:- This is a mandatory add-on by IRDAI guidelines.

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