Car insurance exclusions: Check the list

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If you buy a car, a third-party vehicle insurance is a bare essential. It is actually a legal obligation. Every policy clearly lists out the liabilities that are covered. At the same time there are exclusions in the policy. So, it is important to understand what is not included in your policy to avoid rejection in the event of a claim. Let’s take a look at a few things that are not covered in car insurance.

Third party insurance exclusions

In third party insurance the benefit is received by the third party instead of the owner of the vehicle. In this insurance, the third party is the person who is to be compensated for the loss. Exclusions in third party auto insurance are:

– Repairs for damages sustained to your vehicle are not covered under the third party car insurance.

– Physical injuries that you might have suffered in the accident unless it leads to partial or full disability.

Comprehen5sive insurance exclusions

A comprehensive car insurance is one of the most preferred types of car insurance policies. A comprehensive plan provides financial aid not only for third-party liabilities and losses but also for damages caused to you and your own car. Such plans can be customised by picking add-ons to extend the kind of coverage you require. A standard comprehensive insurance does not cover:

– Any claims made in a situation where you were driving under the influence of alcohol won’t be covered even in comprehensive car insurance.

– If you were driving without a valid driver’s license, your claims won’t be covered.

– A comprehensive car insurance does not cover damages caused due to normal aging and wear and tear of your car.

Third party vs comprehensive car insurance

– A third party cover is cheap, as the premium price is predetermined by the IRDAI based on your vehicle and engine and covers only third-party damages. On the other hand, a comprehensive cover is expensive, as the premium is based on factors such as the city you drive in, car model and the add-ons you, and protects both damages to your own car and third-party damages as well.

– Third-party covers are sufficient for older vehicles that are driven rarely while the comprehensive cover is required for vehicles in frequent use. Additionally, one can benefit from the No Claim Bonus (NCB) during car insurance renewals if you don’t make a claim that year.

– No Claim Bonus (NCB) is a reward given by an insurance company to an insured for not raising any claim requests during a policy year. The NCB is a discount ranging between 20%-50% depending on the policy year and is given to the insured while renewing a policy.