Just Bought a Hyundai Car? 3 Insurance Must-Haves to Protect Your Vehicle


Owning a car is a milestone moment. And when that car has the premium Hyundai badge, the sense of pride and excitement is bound to be higher. However, beyond the celebrations lies an important responsibility - adequate insurance coverage for your prized possession.

We discuss the non-negotiable insurance covers you must secure to safeguard your Hyundai vehicle in India properly.

1. Third-Party Liability Cover

As per the Motor Vehicles Act, basic third-party insurance coverage is required by law for all vehicles navigating roads across the country. By "third party", we mean individuals apart from the owner or riders inside the particular insured vehicle involved in an incident. This cover protects against legal liabilities and financial costs arising from:

·  Damages to third-party property

·  Injuries or accidental death of third parties

However, your damage to your Hyundai in accidents or events like theft, floods, fires, etc., is not included. Given the regular road mishaps across India's accident-prone highways and chaotic city streets, third-party cover is an absolute must.

But considering most of the cars like the Hyundai Verna cost upwards of ₹5 lakhs on the road, only this basic cover leaves you severely exposed risk-wise. Shelling out extra for your damage protection and enhanced coverage should be non-negotiable.

2. Comprehensive Insurance for Complete Protection

A comprehensive policy is strongly advised as it greatly expands the scope of protection beyond third-party risks. It covers both own damage and third-party losses. So you get protection from:

·  Accident repairs - covers the cost of fixing your Hyundai after crashes

·  Theft - loss or damage due to break-in, robbery, etc

·  Natural calamities - floods, storms, lightning etc

·  Artificial events - riots, strikes, terrorist attacks

·  Fire - explosion, malicious damage by burns, etc

So whether it's a mishap caused due to your fault or some unfortunate event beyond your control, costs are covered. This allows genuine peace of mind while driving your prized Hyundai possession like a Verna or Creta on crowded Indian roads notorious for high accident rates.

However, certain scenarios like drunk driving, racing or deliberate damage by the owner will not be covered. Additionally, coverage for electrical or mechanical breakdowns is also excluded. But by and large, comprehensive insurance is your best bet to mitigate risks. Do read the fine print carefully, though.

Enhancing Protection with Add-On Covers

While comprehensive insurance itself is expansive, going a step further with tailored add-ons fills any remaining gaps as per your specific priorities. These optional extensions allow customising coverage at an extra premium cost. Let's see some other useful value-added covers relevant for Hyundai owners to enhance protection for models like the Hyundai Creta , Verna, etc.

Zero Depreciation Cover

This eliminates deductions towards depreciation when processing own damage claims. Normally, the compensation is subject to the degree of depreciation as per age and wear & tear factors. This reduces payouts substantially. The zero depreciation add-on fills this gap.

For instance, if a 3-year-old Hyundai Creta's bumper needs replacing after an accident, the insurer will deduct depreciation from the bumper's showroom price to calculate settlement. This add-on feature overrides depreciation deductions.

Engine Protection Cover

Engine issues can prove extremely costly, running into lakhs for repairs or replacements. Hyundai offers a standard warranty, but expensive problems can surface later, too. This add-on offers financial backup for a breakdown of internal engine parts and gearbox due to leakage of lubricating oil, water ingression or other reasons.

No Claim Bonus Protection

Most insurance companies offer a discount called the 'No Claim Bonus' on your renewal premium if no claim was made in the previous year. However, road accidents can happen unexpectedly. So, even if you had to make a claim, you may lose out on this discount.

To avoid this, you can opt for the No Claim Bonus protection add-on cover. By paying an extra premium, you can still get the No Claim Bonus discount on your insurance renewal, even if you had claimed it in the previous year.

Consumable Expenses Cover

Repair bills include consumables like engine oil, lubricants, nuts & bolts, etc., which are not covered normally. This add-on pays for such expenses up to the defined restrict. Helps reduce out-of-pocket expenses if your Verna or other Hyundai model needs major repairs after mishaps.

3. Personal Accident Cover

Beyond protection for the Hyundai car itself, looking after the owner/driver's safety is also essential. Medical costs and loss of income due to accidents can cause major financial stress. That's where the law-mandated Personal Accident or PA cover comes in.

A PA insurance policy pays out predefined lump sum amounts covering:

·  Death or permanent disabilities due to accidents

·  Hospitalisation expenses up to specified limits

The payouts act as a financial cushion during the recovery period or help the family if death unfortunately occurs. Compared to car insurance, premiums are very affordable but provide vital protection.

So, along with necessary car insurance, PA cover is a must-have for added security. It pays for treatment or sustenance in case the primary bread earner meets with a serious accident. Another crucial risk management tool for the price of a small premium.

The Bottom Line

With premium vehicles like Hyundai, being uninsured can have disastrous financial consequences. Along with mandatory third-party cover, buying adequate damage protection via comprehensive insurance with relevant add-ons is strongly advised. Pay the extra premium, but avoid paying a much heavier price later!

Articles appearing as INFOCUS/THE WEEK FOCUS are marketing initiatives

📣 The Week is now on Telegram. Click here to join our channel (@TheWeekmagazine) and stay updated with the latest headlines