Four Wheeler Insurance In India: Your Comprehensive Guide

What is Four Wheeler Insurance?

Four wheeler insurance is a type of insurance policy designed to cover all four-wheeled vehicles. This insurance coverage provides financial protection to the owner of the four wheeler in case of any physical damage caused due to an accident, theft, natural calamities, etc. The four wheeler insurance policy is valid for a period of one year and has to be renewed every year. It is a legal requirement to have four wheeler insurance in India.

Types of Four Wheeler Insurance Policies

There are two types of four wheeler insurance policies available in India – comprehensive and third party liability. A comprehensive four wheeler insurance policy is the most comprehensive form of four wheeler insurance available. It covers the insured vehicle against any damage caused due to an accident, theft, natural calamities or any other unforeseen event. It also provides coverage for third party liability, which means it covers the insured vehicle against any legal liability that arises due to an accident that causes personal injury or property damage to a third party.

The other type of four wheeler insurance policy is the third party liability policy. This policy covers the insured vehicle against any legal liability that arises due to an accident that causes personal injury or property damage to a third party. However, this policy does not provide coverage for the insured vehicle in case of any physical damage.

Benefits of Four Wheeler Insurance

Four wheeler insurance provides several benefits to the insured. Some of the key benefits of having a four wheeler insurance policy are:

• Financial protection: It provides financial protection to the insured in case of any physical damage caused to the insured vehicle due to an accident, theft, natural calamities, etc.

• Third party liability coverage: It provides coverage for legal liabilities that arise due to an accident that causes personal injury or property damage to a third party.

• Cashless claim settlement: Most insurance companies provide cashless claim settlement facility to their customers. This means that the insured can get the repairs done at any of the network garages of the insurance company and the insurance company will directly pay the garage for the repairs.

• No claim bonus: If the insured does not make any claims during the policy period, the insurance company will provide a no-claim bonus at the time of renewal of the policy. This bonus is usually in the form of a discount on the premium.

Factors that Affect Four Wheeler Insurance Premium

The premium of four wheeler insurance is determined based on several factors. These factors include the age of the vehicle, the make and model of the vehicle, the location where the vehicle is registered, the IDV (Insured Declared Value) of the vehicle, the type of policy opted for, etc.

Age of the vehicle: The age of the vehicle is one of the most important factors that affects the premium of the four wheeler insurance policy. Generally, the premium of a four wheeler insurance policy is higher for a new vehicle as compared to an old vehicle.

Make and model of the vehicle: The make and model of the vehicle also plays an important role in determining the premium of the four wheeler insurance policy. Generally, the premium of a four wheeler insurance policy is higher for luxury vehicles as compared to non-luxury vehicles.

Location where the vehicle is registered: The location of the vehicle also affects the premium of the four wheeler insurance policy. Generally, the premium of a four wheeler insurance policy is higher for vehicles registered in metropolitan cities as compared to vehicles registered in other cities.

IDV (Insured Declared Value) of the vehicle: The IDV of the vehicle is the maximum amount that the insurance company pays in case of any physical damage caused to the vehicle. Generally, the higher the IDV of the vehicle, the higher is the premium of the four wheeler insurance policy.

Type of policy opted for: The type of four wheeler insurance policy opted for also affects the premium of the four wheeler insurance policy. Generally, the premium of a comprehensive four wheeler insurance policy is higher as compared to a third party liability policy.

Conclusion

Four wheeler insurance is a type of insurance policy designed to provide financial protection to the owner of the four wheeler in case of any physical damage caused due to an accident, theft, natural calamities, etc. There are two types of four wheeler insurance policies available in India – comprehensive and third party liability. Having a four wheeler insurance policy provides several benefits to the insured, such as financial protection, third party liability coverage, cashless claim settlement and no claim bonus. The premium of four wheeler insurance is determined based on several factors such as the age of the vehicle, the make and model of the vehicle, the location where the vehicle is registered, the IDV of the vehicle and the type of policy opted for.