Private Car Insurance Policy – Everything You Need to Know

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Everything You Need to Know About Private Car Insurance Policy

In India car insurance policy is a compulsory requirement that every car owner must have, including private car owners. Let us find out all the necessary details about it in this blog.

A car insurance plan protects the car owner against any unfortunate event like accident, collision etc. Be it a private car or a public transport, it is mandatory for every vehicle owner to buy insurance for their own safety and for the safety of others plying on the road. Thus, it is important that a car owner should know about the various types of insurance policies available for cars. Here we are discussing the insurance policies for private cars in detail.

So, what do you mean by private car insurance policy?

When you buy insurance for a private car, it is known as private car insurance. Private cars are those that are used for private purposes by individuals and not for any commercial work. The insurance that you buy for private cars is also known as a package policy for private vehicles. Under such plans, the owner and the driver of the vehicle get coverage against various incidents and unforeseen cases like collision, calamity, theft and so on. Further, the worries of your third party insurance is also taken care of by such a private car insurance policy.

Since a private car insurance policy offers comprehensive coverage, thus they are recommended by insurers. But it is not mandatory to buy private car insurance only while choosing the best car insurance plan for your vehicle. However, many car owners buy private car insurance for company car drivers.

Things Covered under Private Car Insurance Plan – Inclusions of a private car insurance plan

As already discussed, a private car insurance policy is a comprehensive plan and thus it offers coverage against several damages and liabilities. The various things covered under such a plan include:

  • Manmade damages – When a damage is caused due to manmade acts or faults such as riots etc., it is called manmade damage. These damages are included in private car insurance policies.
  • Natural disasters – Natural disasters such as floods, earthquakes etc. are calamities caused by nature and they are covered under your private car insurance policy.
  • Third-party injuries and other liabilities – Any kind of third-party damage or liability such as loss of life, property etc. are also covered under private car insurance policies.
  • External car damages -Damages caused by external ways such as road accidents, etc. are also covered by a car insurance policy.
  • Covers against car theft – If you car is lost due to theft – partial or total – in that case the loss incurred is covered by a private car insurance policy.
  • Cover against Fire – Damages caused by fire or explosion are also covered by a private car insurance policy.
  • Cover against damages caused during transit – If your car is damaged during transit via any means of transportation including air, water or land, it is covered under private car insurance.

Things Not Covered under Private Car Insurance Plan – Exclusions of Private Car Insurance Policy

So, here are the things that are not covered under a private car insurance policy:

  • Car Breakdown (mechanical/electrical) – Damage caused to the insured car because of any mechanical and electronic breakdown is covered under private car insurance.
  • If you use invalid DL and an accident takes place – If a collision or accident takes place when the car driver was not having a valid license while driving the car. In that case, the insured cannot expect to get compensated.
  • In case of drunk driving accident – If the driver of the car was under the influence of alcohol, even in that case compensation will not be offered.
  • Gradual wear and tear not covered – Any losses caused by regular wear and tear is also not included under the policy for car insurance.
  • Damages caused outside geographical limits are also not covered – If any damage to the insured car is caused outside the country or the limit of the policy, then it is not covered under your private car insurance plan.
  • Consequential damages not covered –  If any action of the driver or car owner causes any damage to the insured car, in that case it is not covered under a private car insurance policy.
  • Contractual burdens are not covered – Liabilities caused due to any contractual requirement are also not covered under a car insurance policy.

Can you enhance private car insurance plans? How?

Yes, private car insurance plans can be enhanced by procuring add-on coverage that you can buy by paying an extra premium amount. Zero depreciation, NCB cover, and so on. All private car insurance companies allow policyholders to avail add-on coverage as optional cover.

Read More: Will Your Car Insurance Policy Cover Engine Failure?

Are Private Car Insurance Policies worth it?

Yes, private car insurance policies can be worth the insurance cover that you seek for your vehicle. If you want both third-party coverage and your own car damage insurance plan, then buying a private car insurance cover might be helpful. By availing this policy, you can be sorted in terms of covering your car against all kinds of damages. Also, with comprehensive car insurance you can attain the best security for your car against all kinds of damages.

To Conclude

Now you know the meaning of private car insurance and that a private car insurance policy offers numerous advantages.  However, you must choose to buy the best private car insurance cover for your car via online means so as to avail the best benefits. For this, you need to compare your car insurance policy in terms of the premium amount, coverage type, age and type of car, and you can use a car insurance premium calculator for the same.

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Gayatri Prabhu, Head-Digital Business at Mahindra Insurance Brokers Limited (MIBL) is one those few digital leaders who has the width and depth that is required to execute an ROI driven holistic digital strategy. She cuts through the noise, identifies the critical levers and leads her team to successful execution of the defined strategy. Her core mantra to win new and retain existing customers is: understand the consumer behavior and craft experiences around it.

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