Reasons to Buy a Ford Car Insurance Policy
You put in a lot of consideration before purchasing your beloved Ford car, and now you want to do everything possible to protect it, right? One of the best ways is to buy car insurance, which
acts as a safety net if the insured car is involved in an accident or a calamity, either natural or human-made. Here are some reasons why you should purchase a
Ford car insurance policy:
Third-party insurance coverage is a mandate
According to the Motor Vehicles Act, 1988, every car owner must have third-party liability insurance, which essentially protects them from legal liabilities. With such a cover, you don't have to bear the expenses resulting from injury or death to a third party or damage to their property or vehicle.
Coverage against natural and human-made calamities
Depending upon the situation, the insurer either covers the medical expenses of the injured third party or pays for the repair cost of the vehicle. They also take care of any accident-related legal matters.
Natural calamities such as earthquakes, floods, hurricanes, hailstorms, and lightning can occur anytime and cause severe damage to your vehicle. Own-damage car insurance acts as a financial shield if the insured Ford gets totaled in such an incident.
Helps save money later
With own-damage insurance, the policyholder also has financial protection against damage to the insured Ford because of human-made disasters such as riots, vandalism, strikes, acts of terrorism, and the like. Moreover, the policy coverage also includes theft and damage due to fires, explosions, inundation, and self-ignition.
Damages to the car leading to repair or replacement expenses can cause a big dent in your finances. Car insurance helps protect you and your family against such costly affairs in return for a small amount. Moreover, there is an abundant choice in the market, making it quite easy to buy a suitable policy.
Comprehensive car insurance
provides financial protection to the policyholder against both third-party and own damages under a single policy. You can further get additional protection by purchasing add-on covers in the policy.
If your Ford car gets involved in an accident, you're likely to get caught up in time-consuming and tedious processes as a result. Car insurance can help you skip negotiating with the third party involved and manage the expenses of repairing or replacing the vehicle. A policy with good coverage also takes care of towing your vehicle, compensating the third party, and the like. Just make a claim, and the insurance company will initiate processes such as these.
Let's not forget that having appropriate car insurance also means you will have peace of mind with a safety net should an unfortunate event occur.
Types of Car Insurance Policies
car insurance, you want to have enough coverage so that you don't run into trouble if your Ford car gets damaged. There are two main types of Ford car insurance policies available-third-party and
comprehensive car insurance.
Third-party Ford car insurance
Third-party liability insurance is a requirement that every car owner must meet irrespective of their car make and model to drive on Indian roads without facing legal trouble. This type of insurance
protects the policyholder financially if the insured Ford car injures a third-party individual, causes their death, or damages their vehicle or property in an accident.
To understand a third-party insurance policy, you must know the below terms:
party: The policyholder or the insured individual,
Second party:The insurer or insurance company, and
Third party:The person who demands compensation for injury or damage caused to them or their vehicle/property by the first party.
A third-party policy, or a liability-only policy, only takes care of the legal and financial obligations or compensation due to the third party for their damage or loss. As third-party insurance is a legal mandate, it has an affordable and fixed premium.
Comprehensive Ford car insurance
Comprehensive car insurance offers all-inclusive protection to your Ford car. This insurance policy also covers the financial and legal liabilities arising from the third party sustaining injuries or their property or vehicle getting damaged in a mishap. Additionally,
comprehensive car insurance pays for damages the insured Ford suffers in an accident, natural calamity, or a human-made disaster.
Here's a tip: Consider purchasing a comprehensive car insurance policy because of the extensive coverage it offers. Although it's more expensive than a standalone
third-party liability insurance policy, you also get more benefits. Owning an expensive car means shelling out big bucks for repairing or replacing parts that get damaged, which can adversely affect your finances. A comprehensive car insurance policy can help you avoid paying out of pocket if the insured vehicle suffers significant damage.
Typically, both third-party and comprehensive Ford car insurance policies are valid for one year. Renew the insurance policy within the stipulated period to continue having uninterrupted coverage. Driving with an expired insurance policy is illegal and could result in hefty penalties.
To combat the non-renewal of third-party insurance policies, the Insurance Regulatory and Development Authority of India (IRDAI) mandated multi-year third-party policies for car owners. Irrespective of the type of car insurance you buy, read through the policy inclusions carefully to know what exactly your insurance plan offers.
Ford Car Insurance Policy Inclusions
Ford car insurance policy typically includes:
Third-party liability coverage
Injury to a third-party person
If an individual gets injured in an accident involving the insured Ford car, the insurance company will cover their hospitalisation and treatment expenses. There's no cap on the limit the insurer can bear (unlimited liability). The Motor Accident Claims Tribunal decides the amount the insurance company must pay.
Death of a third-party individual
If a third party passes away due to an accident involving the insured four-wheeler, the insurer gives a certain amount as compensation to their family.
Damage to third-party property or vehicle
If the insured Ford car damages the property of a third-party person in an accident, the insurer compensates them (up to Rs. 7.5 lakhs). The insurer is also liable to provide compensation if the car damages a third-party vehicle in an accident.
Taking care of any legal liabilities you may face due to an accident involving your Ford.
Own damage coverage
Covers the cost of repairing or replacing the car parts damaged in an accident, as well as the charges for towing to a network garage.
Natural calamities such as earthquakes, cyclones, floods, landslides, and the like, can occur anytime and cause severe damage to your car. The insurance policy fully protects you financially against any damage caused due to any such incidents.
Own-damage policies also provide financial protection against damages caused to the insured car due to riots, acts of terrorism, vandalism, and strikes.
If your Ford car gets stolen and remains untraceable, the insurer will pay you an amount matching the insured declared value (IDV) specified in the policy document.
Own-damage coverage includes the insured four-wheeler charring due to fires, self-ignition, and explosions
Damage caused while shifting the vehicle
If the insured car gets damaged in transit by rail, road, air, or elevator, the own-damage policy compensates you for the cost of repairing or replacing the damaged components.
Damage caused by animals
The policy covers repair costs if an animal damages the insured car – either by attacking or getting hit by your speeding car.
Zero depreciation cover– ensures that no depreciation gets deducted from the claim amount for the repair or replacement of car parts damaged due to an accident.
You can further purchase optional
add-on covers to widen the policy coverage. Some such optional covers include:
Personal accident cover– for passengers and paid drivers.
Engine protection cover– pays for the cost of repairing any engine, gearbox, or differential parts damaged due to causes other than accidents.
No Claim Bonus (NCB) retention cover– helps you retain your accumulated NCBs even if you file a claim.
Key-protect cover– compensates you for the cost of repairing or replacing your car keys and lock.
But, some optional covers are only available if the insured car is less than three years old. You must check the car insurance exclusions to find out which covers work for your Ford car.
Ford Car Insurance Policy Exclusions
Every type of
motor insurance policy has exclusions
, that is, risks or situations it doesn't cover. Knowing these exclusions before purchasing a
Ford car insurance
policy is crucial to avoid claim rejection. While exclusions vary by insurer, some standard
car insurance exclusions
Damage due to drunk driving
Driving under the influence of alcohol or other intoxicating substances is a punishable offence. Thus, your insurance policy doesn't cover any accident-related damages caused while driving in an inebriated state. Even if you escape paying a fine to the police for drunk driving, your insurance provider will not settle your claim.
Driving without a valid license
A valid licence is a legal requirement for driving a car and the first thing the insurance provider checks upon receiving a claim. For instance, if the insured vehicle is involved in an accident where the driver lacks a valid licence, the company will not cover the repair costs.
Normal wear and tear
Ford car insurance policy doesn't cover the car's normal wear and tear due to continuous use such as electrical or mechanical breakdown, rusting of components due to weather conditions, malfunctioning of parts, and the like. That's why the insurer deducts depreciation from the total repair cost.
The insurance policy doesn't cover any damages resulting from your or a third party's actions. For instance, if you try starting your Ford car in a flooded area and the engine gets damaged, you must pay for the damage from your pocket. No natural or common causes were at play in this situation—the loss occurred as a result of your actions. The same applies if you drive on the wrong side of the road and it causes an accident.
Breach of the policy wording
The insurer will reject your claim if you violate the terms and conditions of the insurance policy. For instance, if you use the insured car, registered as a private vehicle, for commercial purposes, it's a breach of the policy wording-it could even result in the nullification of your insurance policy.
Damage due to war
No car insurance policy covers damages or losses caused due to war, biochemical attacks, nuclear explosions, invasion, mutiny, civil wars, and the like.
The insurer doesn't settle any claims if the policyholder enters into a contract (contractual liability) with another person. For instance, if the policyholder loans the insured vehicle to someone and it gets damaged in their possession, the insurer will not cover the repair cost of the four-wheeler.
To continue enjoying policy benefits, you must renew the insurance policy before the deadline. Any damage your car suffers after the expiry of the insurance plan won't be covered. If you raise a claim with a lapsed insurance policy, the insurer will reject it.
car insurance exclusions
can worry policyholders. However, a few add-on covers can help make up for some of these exclusions.
Add-on Covers for Ford Car Insurance Policy
Add-on covers supplement the coverage of a standard car insurance policy. There's an abundant choice of
car insurance add-ons to strengthen the financial protection offered by insurance plans. Below are some add-ons available for your
Ford car insurance policy:
Consumable components of a car are its nuts, bolts, screws, lubricants, bearings, engine oil, AC gas, and the like. Getting such parts repaired or replaced can result in the piling up of minor expenses, burning a hole in your pocket. A consumables cover compensates for any loss or damage to these items caused by any risks covered by the policy.
Zero depreciation cover
As a depreciating asset, your car continually diminishes in value. If you have this cover, the insurer
doesn't deduct any depreciation on the car components, except tyres and tubes, when replacing them under an own-damage claim. The zero depreciation cover is valid if you get the four-wheeler repaired at an authorised network garage.
The total cover gets triggered in the case of a theft or total loss. It compensates the policyholder for the expenses incurred on tax, insurance premium, registration fee, and other such charges the concerned government authority imposes on the insured car. The insurer pays the insurance premium on a pro-rata basis for the unexpired policy period.
Engine protection cover
The engine protection cover reimburses the policyholder for the amount spent on repairing any damaged engine, differential, or gearbox parts. This add-on is helpful if the leakage of lubricating oil or water ingression is responsible for the indirect damage.
NCB retention cover
As a reward for a claim-free policy year, the insurer provides the policyholder with a discount on the own-damage premium in the form of an NCB. Over the years, the NCB accumulates and can range from 20% to 50%. It becomes 0% if you file an own damage claim. However, with an NCB retention cover, your NCB remains unchanged even if you raise a claim.
Key protect cover
If you have a key-protect cover, the insurance provider pays the repair or replacement cost of car keys, lock, and lockset. However, the insurer bears this expense only if the items are the same type as the damaged or lost/misplaced ones.
EMI protection cover
Your finances get significantly affected if the insured car is involved in an accident. If the authorised network garage takes over 30 days to repair the insured four-wheeler, the EMI protection cover pays up to three of your car loan EMIs. The insurance company directly pays the loan provider.
Daily allowance benefit
An accident can leave your car severely damaged and in dire need of repair, due to which you may have to spend on commuting. If you have the daily allowance add-on, the insurance policy compensates you for everyday travel expenses if the network garage takes more than three days to repair your car.
Choosing appropriate add-on covers while buying or renewing your
Ford car insurance policy can help you best protect your four-wheeler.
How to Buy and Renew Ford Car Insurance Online
In the current technology-driven world, you can do the majority of the tasks quickly from the comfort of your home. To keep up with customer needs, insurance companies now have an online presence so you can buy or renew car insurance easily.
Online car insurance purchase and renewal have several benefits such as:Zero to minimal paperwork requiredGenuine insurance policiesNo requirement of agent expertiseEasy comparison between insurance plansTime-savingConvenientBest deals and discountsInstant retrieval of a soft copy of the policy document
Here is how you can buy a
Ford car insurance policy online:
On the insurer's official website, click on the car insurance option.
Enter details regarding your car, such as its registration number, chassis number, make and model, cubic capacity, and the like. You can find these details in the registration certificate (RC) book issued by the RTO for your car. You may also have to provide your name, mobile number, email ID, qualifications, driving licence validity, and other such personal information.
Provide your car age, and select the type of policy you want. You can choose between a third-party liability policy or a comprehensive car insurance policy that offers coverage for both third-party and own damages.
Choose your preferred add-on covers (zero depreciation cover, personal accident cover for passengers and paid drivers, return to invoice cover, and the like), if any. Every add-on cover you opt for increases the premium, so only pick those that meet your needs.
You may have to enter details like your past claim experience and NCB to get an estimate of the own-damage premium.Get an insurance quote using the online premium calculator.Upload scanned copies of any documents required.Pay the premium and applicable service tax via net banking, debit/credit card, or any other online payment mode.
You will be sent a soft copy of the policy document to your registered email address.
Remember to verify whether the insurance provider is IRDAI-registered, read the policy document before making the payment, and cross-check the details in the final policy document.
Renewing your insurance policy before the deadline is just as crucial as purchasing an appropriate insurance plan. Below are the steps to renew your
Ford car insurance policy online:
Visit the official website of Reliance General Insurance and click on the option to renew your car insurance policy.Enter the required details, such as your insurance policy number, car registration number, engine number, and the like.You will get redirected to your policy details, which you can review. You can also modify your add-on or optional covers if required.Check whether the final premium amount shown is correct.Read through the car and nominee details and if the information is accurate, click on the Pay tab.Make the payment using a debit/credit card, net banking, or any other online mode of payment.You will receive a soft copy of the renewed car insurance policy at your registered email address.
Failure to renew your policy in time leads to a break-in. If you don't complete the renewal process within the 90-day break-in period, you lose your NCB and policy benefits. You would then have to purchase a new insurance policy, which would be issued after the car undergoes a satisfactory inspection and the insurer receives the necessary documents. You can only file claims if your insurance policy is valid.
How to Claim Ford Car Insurance and the Documents Required
Only knowing about the policy inclusions, exclusions, and other such details is insufficient—you must know
claim car insurance too. Having this information helps you have a smooth claim settlement process. You can file either a cashless claim or a reimbursement claim.
With a cashless claim, you can get the insured vehicle repaired at an authorised network garage without paying anything out of pocket, except the deductible, depreciation (if you don't have a zero depreciation cover), and any other repair cost the policy doesn't cover. The insurer directly pays the garage for the repair expenses. Reliance provides more than 8200 cashless garages all over India. Here is how you can raise a cashless claim:
Inform your insurer about the accident by calling their toll-free number or emailing them. If applicable, you can also use the Self-i app or the Reliance General Insurance website.
Make a note of the details of the third party involved in the accident. Get their vehicle number and contact details. Additionally, if there are any witnesses involved, collect their information.
Go to the nearest police station and file a First Information Report (FIR) about the accident. When filing the police complaint, provide as many details as possible (the location of the accident, the vehicle number and contact details of the third party, the witnesses, and the like). Keep a copy of the FIR.
You can file the claim online or offline by submitting a claim form with the accident details and the required documents. To raise the claim offline, visit a branch of the insurer.
You can either move the car yourself to a network garage for repair or have the insurer tow it for you. The garage thoroughly inspects the car and gives an estimate of the required repair work to the insurance provider. After the approval of the insurer, the repair work commences, and the garage sends the bills to the company for evaluation. You need only to pay the depreciation and deductible.
By filing a reimbursement claim, you can get the insured car repaired at any garage of your choice. Pay the repair bills upfront and send them to the insurance provider, who will reimburse you. The process to file a reimbursement claim is similar to that of filing cashless claims. To raise a reimbursement claim:Follow steps 1 to 4 mentioned above.Take the damaged car to your preferred garage for repair.After the repair, settle the bills with the garage.Inform the insurance provider about the repair work and send them the original bills and receipts for reimbursement. The insurer verifies them before initiating the reimbursement process.
cashless claim or a reimbursement claim, submitting the appropriate documentation is crucial for a smooth claim settlement process. The documents required to file a
car insurance claim after an accident are:The claim form, duly filled and signed by you (the policyholder)The cover note or policy document mentioning the policy number (proof of insurance)An FIR copyAn RC copyA copy of the driving licence of the person operating the insured vehicle at the time of the accidentThe original repair invoice and payment receipt (the latter is not required if it's a cashless claim)The original tax receiptA garage-issued estimate of the repair workThe odometer reading of the insured four-wheelerEngine and chassis numberAn RC book copyA claims discharge-cum-satisfaction voucher (issued by the garage) with your signature across a revenue stamp (if the insurer must pay the garage directly)Details of the accident, like the location, date, and timeMedical receipts (if you suffer any physical injuries)
Keep these documents handy for a quick and hassle-free claim settlement process.