Car insurance is mandatory by law in India. Apart from this legal requirement, it does make sense to have an insurance policy to back you up financially in case things go awry. The road is highly unpredictable – no matter how carefully you drive, someone else is always rash.
There are two main types of car insurance plans – third-party coverage and comprehensive coverage. Third-party car insurance takes care of damages done to the third-party’s vehicle or person in the event of a mishap that involves you. On the other hand, comprehensive car insurance goes a step further by covering third-party losses as well as your own damages.
It therefore makes sense to always opt in for a comprehensive car insurance plan. Now, before you set off and hit the road, you should be aware that there are certain things that are not covered by a comprehensive car insurance policy too. These exclusions are often put in place to minimize the risk borne by the insurer as well as to encourage safe driving by the general populace. Let’s look at what some of these exclusions are.
- Damage to tyres and electrical equipment
When you purchase a vehicle, the tyres are certain to face a lot of wear and tear. Similarly, electrical equipment too many undergo damage due to bad weather or rodent problems. Since these types of damages are almost certain to occur, a standard car insurance plan does not cover them.
- Accidents due to the influence of alcohol
An accident that has occurred as the result of drunk driving does not receive the benefit of coverage. The same restriction holds true for accidents that occur as a result of driving under the influence of any other banned substances.
- Claims made for racing mishaps
If you use your vehicle to race dangerously and face an unfortunate mishap or collision in doing so, your insurance company will not honour the claim.
- Losses sustained in war
Insurance companies are not liable to compensate their policyholders for damages sustained to their vehicles as a result of war.
- Coverage for driving someone else’s car
If you hand over your car keys to a family member or a friend, be aware that you are doing so at your own risk. Should they meet with an accident, you will not receive any compensation from your car insurance company. This is because your insurance policy is only valid if the insured person is behind the wheel.
Do bear in mind that these exclusions are the ones that are generally common to all car insurance providers. Each insurance company may have its own list of further exclusions that do not get covered under its policies. It is advisable to always have a proper discussion with an insurance consultant discussing all the details of policy inclusions and exclusions before you buy car insurance. We hope this article will prove helpful to you. Take care and drive safely.