Time To Renew Your Car Insurance? Inclusions And Exclusions You Should Know


Are you a Car enthusiast? Do you find it thrilling and fascinating when you drive a Car? Do you want to give your Car the full safety and security that it needs? If Yes, then get ready to go through this informative article that will address the critical question that hit Car owner’s minds every year. Is it time to renew your Car Insurance? But before moving ahead lets us first try to understand Car Insurance.

Understanding Car Insurance

Car Insurance works as a safety net for your four-wheeler companion from some unseen hazardous situations that suddenly come their way. No doubt this is a wise investment that offers safety from natural disasters, theft, accidents and any kind of wreckage. Having Car Insurance makes you feel safe and secure and you can focus on the triumph of driving without worrying about your Car.

As you are aware of the importance of Car Insurance. Let us go deep into it and get to know some inclusions and exclusions of Car Insurance.

Inclusions of Car Insurance

Inclusions simply mean the list of events, items and circumstances that are covered by the Policy. Here are some inclusions of the Car Insurance Policy.

  • Accidental Damage

Imagine your Car got collided and had severe damage. But no need to worry about it as Car insurance has got your back. Even if it’s a minor dent or considerable harm you will get the cover of repair expenses subject to the terms and conditions of the policy.

  • Theft or Destruction

In this today’s modern world unfortunately theft and vandalism becomes very common. So one needs to be very aware of these things. But as a Car Insurance holder, you do need to worry about your car as if this unfortunate thing happens then you will not be left empty-handed. You will get the compensation according to the assessed value of your Car.

  • Natural Disasters

When mother nature shows its macabre and grisly form causing damage to your Car by storms, earthquakes, wildfires, floods etc. then Car insurance works as a shield. And you get a spare of financial help to cover the loss caused by natural disasters.

  • Third-Party Liability

Many times it happens that because of your fallacy and blunder third person suffers a lot. In such situations where accidents cause harm to the property of a third party, your Car Insurance comes to liberate you from the blunder that you created.

  • Personal Accident Cover

Giving protection to the occupants is as necessary as protecting the Car. A comprehensive Car Policy that includes a personal accident cover, offers the coverage amount.

Exclusions of Car Insurance Policy

Similar to Inclusions, Exclusions mean those events or cases for which the insurance company does not provide coverage. Here are some exclusions listed below that one must know.

  • Regular Wear and Tear

Though Car Insurance provides coverage for sudden mishappens. It does not provide any Financial spare for the daily wear and tear of the car. Maintenance cost, engine servicing, tyre replacement etc. do not fall in the category of inclusions. Hence one does not get any kind of coverage for this kind of thing.

  • Overhasty and Reckless Driving

If you are driving under the influence of alcohol and drugs then the Insurance Company will not come to help you. Racing on public roads recklessly too revoked you from the benefits of Car Insurance.

  • Mechanical Failures

Any damage to the car or accident that happens due to the low maintenance of the car is strictly excluded from the insurance coverage. So you must make sure of the proper maintenance of the Car so that you do not have to face such situations in future.

  • Unlawful Activities

At the time of the incident if the Insurance Company finds out any illegal or unauthorized activities have taken place then the company will simply step back and not entertain the claim.

  • Unauthorized Drivers

If the driver involved in the accident does not possess any valid driving license then even in this case company will reject the claim. So it’s better to get a driving license first before driving any vehicle.

 IDV Calculator

IDV calculator (Insured Declared Value) plays a very important role in your Car Insurance Policy. It symbolizes the maximum sum insured which means the highest amount that the company will pay in case of any mishappings. Calculation of IDV is very important as it helps you to know the premium amount that you have to pay and the final amount you receive at the time of claim settlement.

IDV is calculated considering your Car’s model, age and depreciation. When your Vehicle’s life comes near its end then the IDV decreases because of depreciation. While higher IDV means a high premium that results in a good settlement amount.

Bottom Line

In short before taking any Car Insurance it is crucial to analyze the inclusions and exclusions of your Car Policy. Go through the all necessary terms and conditions and if you agree to it then only take the Car Insurance.

We hope that this article has provided you with the helpful information that you were looking for. Thank you for reading this article till the end. We wish you Safe Driving and Happy Renewals!!

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