Important Things to Know About Four-wheeler Insurance in 2022-23


4 min read

Updated on Aug 08, 2023

The Indian insurance companies offer plenty of four-wheeler insurance plans catering to the specific needs of customers. Here, different insurance companies offer several plans with varying features at different prices. Therefore, it is essential that you do your research carefully before settling for any particular plan.

What’s Inside

Popular Policy Types in India

In India, two types of car policies are popular: the third-party policy and the comprehensive policy.

The third-party insurance exclusively covers the damages of the third party and does not cover any damage coverage to your vehicle. The comprehensive plan not only covers the third-party damage but also covers your losses and damages. So, if you are seeking a basic four-wheeler insurance plan, a third-party plan is ideal, maintaining the mandate of the Motor Vehicles Department. However, if you are driving a luxurious car, then a comprehensive plan would be more suitable. You will receive a multitude of information if you search for four-wheeler insurance online.

Top 8 Things to Know About Four-Wheeler Insurance Plans in India in The Year 2022:

1. Compare Insurance Policy

Better research will lead you to settle for the best car plan. When you compare insurance policy, the important factors that you must consider include the inclusions and exclusions, sum insured, premium, add-ons, claim settlement process, deductibles, etc.  Online comparison has eased the entire process.

2. Add-ons

The add-ons or riders are additional coverage benefits that you can avail yourself of with an extra premium cost. Such add-ons widen the scope of insurance coverage and offer guard against certain specific damages that may remain excluded from the basic plan. But, add-ons are only available for comprehensive plans. You can compare insurance policy online, to know your best suit.

Riders enhance the scope of coverage and hence can prove to be beneficial. However, you need to weigh the pros and cons and then opt for the same.

3. Claim Process

One of the most essential reasons to get four wheeler insurance is to receive instant financial assistance in times of need. Therefore, ensuring the claim process is one of the major considerable factors. The easier the claim process, the more user-friendly it becomes.

4. Claim Settlement Ratio

When you compare four-wheeler insurance online, you must ensure the claim settlement ratio of the insurer you have chosen. The CSR indicates the total number of claims the company has settled against the total number of claims received in a single year. A high CSR ensures better possibilities of claim settlement.

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5. Policy Terms and Conditions

Before proceeding to purchase a particular plan, you must ensure clarifying all the terms and conditions of the policy. It will ease out the ambiguities and confusions and let you understand if it meets all your specific requirements.

6. IDV

You must carefully set the IDV or the Insured’s Declared Value. It does not signify the resale value, rather the tentative current market value. In case of complete loss/theft or damage, the insurer will payout for your damages based on the set IDV.

7. Deductibles

When comparing four wheeler insurance online, you will know that the higher the deductibles, the l; lower the premium value; however, it even lowers the premium value. The amount it is generally believed, setting a high limit for deductibles proves to be better for safe drivers.

8. NCB

NCB or No Claim Bonus is the award that the company provides for each claim-free year. This claim can even reach up to 50%. You have to punctually renew the plan, to retain this facility.

Considering these basic factors will lead you to buy the best four wheeler insurance online.

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FAQs on Four-wheeler Insurance

How does 4 wheeler insurance work?

It comprises any damage occurring to your vehicle and any loss resulting to the car or accessories due to manmade or natural calamities as per the policy inclusions. In addition, this kind of plan covers legal liability to third parties. Finally, it offers personal accident coverage for the driver.

What is 3rd Party 4 wheeler insurance?

Third-party insurance offers protection against damages to the third-party by the insured vehicle. It covers physical injuries, damages to the vehicle, damage to the property, and death. Third-party insurance does not provide any compensation, if: The accident was caused due to drunken driving.

Which insurance is necessary for 4 wheeler?

third-party insurance

Under the Indian Motor Vehicle Act, third-party insurance is mandatory. This type of policy only covers third-party damages and losses.

Jul 14, 2021
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PayBima Team
PayBima is an Indian insurance aggregator on a mission to make insurance simple for people. PayBima is the Digital arm of the already established and trusted Mahindra Insurance Brokers Ltd., a reputed name in the insurance broking industry with 17 years of experience. PayBima promises you the easy-to-access online platform to buy insurance policies, and also extend their unrelented assistance with all your policy related queries and services.

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