First party car insurance: Benefits, inclusions & exclusions

Knowing the several forms of car insurance is essential for protecting your vehicle and guaranteeing road peace of mind. First-party car insurance is a well-liked choice since it emphasises safeguarding you as a policyholder and, therefore, ensures your financial safety is taken care of.

However, what is first-party car insurance, and what does it cover specifically?

To help you decide if first-party car insurance is best for you, we'll go into excellent detail about its advantages, exclusions, and inclusions in this blog.

What is first-party car insurance?

The policyholder is defended by first-party insurance against losses to their property or vehicle brought on by various hazards, similar to theft, accidents, or natural disasters. The policyholder and the insurance company enter into a contract whereby the insurer promises to repay the policyholder for covered losses. In substance, this type of insurance protects the insured against loss or damage to their own means, unlike third-party insurance, which covers liability for detriment to third parties.

First-party car insurance is a crucial component of your auto insurance selection since, in short, it guarantees that you will be protected in the event of an emergency.

First-party car insurance benefits

Here's how first-party car insurance benefits you and why it may be a great choice.

●      Faster claim process – Compared to other insurance types, first-party insurance generally has a speedier and easier claims process because it covers your car, particularly if the other motorist is underfunded or uninsured. Your insurance will handle everything, leading to quicker judgements.

●        Protects you from uninsured drivers – Though most of the time we hope other drivers have insurance covering damage, this is not always the case. In cases when the other person is either uninsured or has inadequate coverage, first-party coverage could be able to shield you. First-party coverage can save you a lot of hassle and save you from having to pay out of pocket if you find someone without sufficient insurance.

●      Legal requirements – Certain authorities dictate various forms of first-party coverage, similar to no-fault insurance or particularly injury protection, by law. In areas where similar insurance is needed, these laws help guarantee that you have appropriate coverage no matter who's to blame in an accident; thus, they benefit you.

●        No-claim bonus – The policyholder will get a no-claim bonus if they fail to file a claim during a policy year, which can be used to reduce their cost when they renew their comprehensive insurance policy.

●        24/7 assistance—Road support with 24/7 availability is an extra benefit of first-party auto insurance. In the event of breakdowns, flat tyres, or other roadside issues, this is a helpful perk. You may need to purchase this feature as an add-on, though. Those with only third-party auto insurance are not eligible for benefits like these.

Inclusions and exclusions under first-party car insurance

Before purchasing first-party car insurance, you should understand its inclusions and exclusions to avoid future problems.

Inclusions

●        Own damage coverage: Third-party car insurance covers only liability coverage, whereas comprehensive car insurance ensures to covers your own damage coverage. This means that the coverage will cover the cost of repairing or replacing your vehicle in the event of an accident, theft, or natural disaster. You must consult with your insurance provider regarding the scope of your personal injury coverage.

●        Third-party liability coverage —Third-party liability insurance, which covers the potential financial and legal ramifications of a car accident, is a component of comprehensive car insurance. This coverage pays for the third party's medical bills and reimburses them for any property damage experienced. This coverage would apply to you if you purchased third-party car insurance. First-party car insurance, on the other hand, covers both own-damage and third-party liability.

●        Accident coverage – In the event of an accident, comprehensive car insurance covers both the policyholder and any passengers personally. In the event of an accident-related death or disability, this coverage pays out to the policyholder and passengers.

Exclusions

●        Negligence – Generally speaking, damage or loss brought on by the policyholder's own carelessness or failure to use reasonable caution is not covered under the first-party insurance coverage. For example, the insurance might also not pay if someone leaves their car open or if it is stolen.

●        Intentional damage – The insurance will not pay for the loss if the policyholder intentionally causes any kind of harm or damages their property in any sort of way.

●        Wear and tear – Normal depreciation or damage due to ageing, wear and tear, or a lack of maintenance (for example, an old roof or a car's gearbox failing over time) is usually disregarded.

●        Illegal activities – Generally speaking, losses brought on by unlawful activity, such as drug-related occurrences or accidents involving drunk drivers, are not covered under the first-party insurance coverage.

Wrapping Up

Driving on Indian highways is protected for both you and your vehicle by first-party car insurance. Its broad protection gives you peace of mind and covers you both legally and financially. 

You may take advantage of our great claim settlement rates and dedication to a seamless customer experience when you choose Zurich Kotak General Insurance for your first-party car insurance.

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