How To Get Car Insurance For Leased Vehicles In India?
How To Get Car Insurance For Leased Vehicles In India?
Similar to fully-owned vehicles, it is mandatory by law to buy car insurance for leased cars or vehicles in India. But how can you purchase one? In this article, we’ll walk you through the process of buying car insurance for leased vehicles in India.
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We all have that one dream car that we want to drive once in our lifetime. Isn’t it? The most common way to make your dream come true is to lease a car or other vehicle that you have always wanted to drive. Whether you are driving an owned vehicle or a leased car, having car insurance that provides protection against third-party liabilities is mandatory for all four-wheelers in India.
What Is Car Insurance?
Car insurance is a type of motor insurance that provides protection against loss or damage to the vehicle. There are two kinds of car insurance— third-party insurance and comprehensive car insurance.
- Third-party car insurance provides coverage only for loss or damage occurred by you to the third party.
- Comprehensive car insurance provides protection against loss or damages that happened to both your vehicle and a third-party vehicle.
How Does Car Lease Policy Work in India?
Most people lease a car or other vehicle for two-or five-year contracts. When you lease a car, you don’t have to make a down payment, and the total maintenance costs are covered by the lease installments. In most cases, you get third-party car insurance when you lease a vehicle. Henceforth, any loss or damage that you cause to a third party is covered by an insurance company. But, what about the damage to your leased car? Who will bear this? This is why it is important to purchase a comprehensive leased car insurance policy.
You can purchase a comprehensive protection plan for your leased vehicle from any insurance company, like InsuranceDekho. With a standard car insurance policy, you can also buy certain add-ons to enhance its coverage. Some add-on benefits offered under a comprehensive car insurance policy are:
- Roadside Assistance Cover: This is useful when your vehicle breaks down and you get stuck on the side of the road. If the damage is modest, a mechanic will be sent to your location to repair your vehicle. However, in case of severe damages, an insurer will help you tow a car to a mechanic.
- Supplemental Liability Insurance: It is a leased car insurance policy that provides coverage for claims made by the third-parties. There is a maximum sum assured limit provided by the leasing company for a third-party insurance policy. However, you can increase the coverage amount with supplemental liability insurance add-on benefit. This will ensure that you are financially protected even if the third-party sustains serious damages or injuries.
- Super Collision Damage Waiver: A collision damage cover add-on only provide coverage for exterior damages. However, a super collision damage waiver benefit also provide coverage for the other parts of the vehicle. This benefit can be highly beneficial if your rented vehicle is involved in an accident that is more serious than a minor collision.
- Uninsured Motorist Protection: Uninsured motorist coverage is intended to protect you from financial losses caused by an accident in which the other driver does not have enough coverage. Mostly, hit-and-run drivers are considered uninsured motorists.
Factors To Consider When Purchasing a Leased Car Insurance Policy
Here are some key points to keep in mind while getting car insurance for leased vehicles in India:
- Check Coverage Provided by the Leasing Company: Always check the type of car insurance policy provided by your car leasing company before signing the lease agreement.
- Consider Additional Protection: : While the leasing company's insurance policy may cover damages to the car of third-party, it may not cover loss for your leased car. In such cases, you may want to consider getting additional coverage to protect yourself from a financial burden arising due to an accident.
- Check Deductibles: The rental car insurance policy provided by a leasing company may include deductibles that you must pay in the case of an accident. Make sure you check the deductible amount and read all other terms and conditions at the time of renting a car.
- Check Hidden Costs: Read the policy document carefully while purchasing a leased car insurance policy in India. There may be some hidden charges that an insurer discloses during claim settlement, resulting in an additional financial burden for you
Wrap Up
In conclusion, car insurance is an essential requirement when leasing a vehicle in India. It is important to understand the coverage provided by the leasing company and significantly increase it based on your needs. You can also easily get car insurance for your leased car or vehicle online.
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