Unlike western countries and rich sub-continental households, a car is mostly a family affair in India. Members of the Indian middle-class do not usually have individual cars. They have what they call a family car. They travel in it together and multiple people drive it. Does all this affect car insurance? What is family car insurance? And Is it necessary? Read ahead for answers and to know more about choosing ideal car insurance coverage for your Family Car.
What is a Family Car?
There’s no universal definition of a ‘Family Car’. It can be understood as a vehicle used by a family to travel together. They can travel in it to meet relatives, visit a mall, go on a road trip, etc. Such cars can also be used by different members of the family at different times as per their suitability.
It is difficult to slot a Family Car as a hatchback, sedan, or a Sports Utility Vehicle (SUV). A family can have an individual hatchback for the office goer and a spacious SUV for family outings. On the other hand, a conservative family might have just one hatchback or a sedan. Thus, the definition of a Family Car is based on its utility.
Features of a Family Car:
Here are some prominent features of a Family Car.
- Value for money in terms of mileage.
- Cost-effective concerning all the features and benefits.
- Long-lasting and suited for in-city travel.
- Meets basic entertainment requirements.
- Top-notch safety features.
- Spacious seating.
- Should house at least four to five people comfortably.
- Adequate boot space.
Family Car Insurance:
Whether you own a Family Car or a car that is mostly used by an individual, one thing is certain—car insurance. As per the law, vehicles that are driven on Indian roads need to be insured with a motor insurance policy.
Apart from the compliance reasoning, you should consider putting some thought into insuring your Family Car as it can provide wide-ranging insurance coverage. By making an informed insurance decision, you can not only save big but also ensure minimum financial expenses when it comes to repairing a damaged vehicle.
- If the intent is to simply comply with the law, then you can opt for a minimalistic Third-party Liability Car Insurance Policy.
- If you want optimal coverage along with meeting the requirements set by the law, then choose a Comprehensive Car Insurance Policy.
- An even better option for a wide-ranging plan is to top-up the Comprehensive Plan with relevant add-ons.
Add-ons for Family Car Insurance
Car Insurance Add-ons are like mini-policies that can only be purchased with a Comprehensive Plan. They come at a cost. But in return, they offer enhanced coverage and valuable services. Here are some add-on covers that can be beneficial if included in a Comprehensive Family Auto Insurance Policy.
1) Roadside Assistance:
This add-on is also known as RSA. As the name suggests, it is a service that comes in handy in case you need any roadside assistance. Such a service is important in case of a Family Car. Here’s an example to illustrate the same.
Consider you are travelling with your family in your car and it breaks down. You try to resolve the issue but to no avail. The hot and humid conditions make it difficult for your family members to keep it cool. Time’s running out. You as a group are running late to reach your destination. You hire a cab and your family members travel in it while you search for a mechanic to help you out, which is a time-consuming affair.
All this can be avoided with an RSA cover. In the case of a car break down, simply call the insurer and they will send help. If the vehicle can’t be repaired on the spot, they will tow it to a garage. You can hire a cab and travel with your family to your destination. In some cases, the insurers also help in arranging a cab.
2) Passenger Cover:
This add-on is like an accident cover for the passengers in your car. Unfortunately, if the car is involved in an accident, such an add-on will offer the necessary insurance cushioning for the passengers travelling in the insured car.
3) NCB Protection:
No Claim Bonus is a renewal discount. It can be used to reduce car insurance premium while renewing the plan. You can get this bonus if you do not raise a claim during the policy period. In case of a claim, the bonus will not be applicable. Unless you have an NCB Protection Add-on.
Such an add-on can be of great help if the Family Car is being driven by inexperienced drivers. You might avoid accidents, but can you be confident about the novice driver in your family? The NCB Protection Add-on permits one or two claims during the policy period. Thus, you can claim as well as ensure applicability for the bonus.
How to buy Family Car Insurance Online?
In the late 90s and early 2000s, buying and renewing car insurance used to be a time-consuming process. It could be termed convenient, at least by 2020 standards. Now, in the hyper-connected, smartphone-powered era, insuring your car is as simple as ordering a pizza.
Here’s how you can buy Family Car Insurance online:
Step 1: Visit www.acko.com via your mobile or laptop.
Step 2: Enter basic details.
Step 3: Select a suitable plan.
Step 4: Make an online payment.
Step 5: Download your policy.
Family Cars in India:
Here’s a list of some of the popular Family Cars in India. Note that this is not an exhaustive list and is not mentioned in any specific order. The list has a mix of budget cars as well as expensive ones.
You are advised to conduct your research for detailed information about these vehicles in case you are interested in buying them. However, make sure to buy an insurance policy if you happen to purchase a Family Car.
- Maruti Suzuki Alto
- Maruti Suzuki Swift
- Maruti Suzuki Ertiga
- Hyundai Elite i20
- Mahindra Bolero
- Tata Tiago
- Honda BR-V
- Toyota Innova
- Mahindra Marazzo
Here are some key takeaway points from this article.
- It is mandatory to insure a Family Car in India.
- Buying a Comprehensive Vehicle Insurance Policy offers a wide-ranging cover.
- Buy add-ons for your Family Car’s insurance policy based on their utility.
- You can buy and renew policies easily via the online mode.
Frequently Asked Questions:
Listed below are common queries regarding Family Car Insurance. For terms and conditions of the plan, you can go through the Policy Wordings associated with the insurance cover. If you have specific questions about the claim procedure or certain exclusions, feel free to contact your insurance company’s customer support team. Do not buy a policy without clarifying your doubts.
The vehicle insurance policy is for a vehicle unless specified otherwise. It is identified and associated with the vehicle for which it is purchased. As the car has been insured by you, your daughter does not need to purchase a separate policy for it. Make sure she holds a valid Driving License.
Yes, you can skip it and avoid duplication. You will have the option to do so while purchasing the policy.
Here’s a list of add-ons apart from those mentioned above.
>1. Zero Depreciation
>2. Invoice Protection
>3. Engine Cover
>4. Accessories Cover
>5. Consumables Cover
Yes, you can renew your policy directly from www.acko.com irrespective of where you had purchased it from. Make sure to renew the policy before it crosses the expiry date to ensure continuous insurance coverage.
Car inspection is not required if the policy is renewed before the expiry date. It can be required if there’s a considerable gap between the expired policy and the date when you apply for car insurance renewal.
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