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Everything You Must Know About Private Car Insurance

30th August 2022 8min read 427 views

Most families celebrate the day they purchase a car. It doesn’t matter whether the vehicle is your first or fourth – getting a new four-wheeler creates a jubilant atmosphere at home. Owning a vehicle also comes with a lot of responsibility. Apart from keeping the car clean and maintaining it well, you must have a private car insurance policy. To help you choose the right four-wheeler insurance for your vehicle, let’s look at everything you need to know about these insurance plans.

What Is Private Car Insurance?

Private vehicles get used by individuals or families for their personal needs. You cannot use a private car for commercial purposes, including transporting goods for your business. A private car policy offers coverage for these vehicles.

What Are My Options?

There are two broad car insurance options you can choose from:

Third-Party Insurance

A third-party plan covers damages to third parties and their property. These plans became mandatory in India under the Motor Vehicles Act, 1988.

Comprehensive Insurance

These plans cover damages to your vehicle under certain conditions. A comprehensive private car policy offers better coverage, helping you deal with the cost of repairing or replacing your vehicle.

What’s Covered Under Comprehensive Private Car Package Policy?

Your comprehensive car insurance plan will help take care of the cost of repairs in case your vehicle gets damaged due to:

Natural Calamities

You can file a claim against damages caused by natural calamities like floods, rockslides, earthquakes and hurricanes.

Fire

Your private motor insurance policy takes care of damages caused by a fire, including self-ignition or explosion.

Theft

If your vehicle gets stolen or damaged due to a theft attempt, you can count on your insurance policy to help you.

External Damages

Your plan covers damages caused by external forces, such as a collision or accident.

Man-made Acts

Your private car package policy also covers damages caused by man-made activities like riots, strikes and vandalism.

In-transit Damage

Your coverage extends to damage sustained while your vehicle is in transit.

What’s Not Covered?

In certain situations, your insurance company may reject your claim. If you file a claim for damages your policy excludes, the company will deny your request. Most insurance plans will not provide coverage for the breakdown of electrical and mechanical parts or for regular wear and tear. Your car insurance company will also reject any claim caused by illegal activities, including driving without a valid license, using a private vehicle for commercial purposes, or driving while under the influence of drugs or alcohol. Check the policy documents to understand what a policy includes or excludes.

Selecting the Best Insurance Plan

When you’re ready to purchase private vehicle insurance, you must do some research. Start by checking what policies are available. New products like Edelweiss SWITCH 2.0 offer a unique pay-as-you-go plan, providing coverage only for the days you use your vehicle. If you have a car that you use sparingly, such a policy might be best. Depending on how you plan to use your vehicle, you should select add-ons that enhance your coverage and add value to your policy. Remember, add-ons come at a cost, so choose wisely. Finally, check the claim settlement ratio before selecting a policy or insurance company. The number lets you know how likely you are to receive a settlement after raising a valid claim request.


Once you purchase insurance, you must remember to complete your vehicle insurance renewal  every year. If you miss renewing your policy, you risk losing your coverage, which exposes you to financial liabilities in case of an accident. Visit the Edelweiss General Insurance website to renew your plan or purchase a private vehicle insurance policy today.

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