Types and Kinds of Car Insurance Policies

Posted on: Jan 4, 2019 | | Written by:

Types and Kinds of Car Insurance Policies

Published on September 23, 2019. EST READ TIME:4 MIN

With a vehicle comes the responsibilities of driving safely and taking sufficient precautions to ensure road safety for yourself and others. In this context, a car insurance policy is one of the most important purchases to make. Depending on your preference and requirements, you may opt for comprehensive car insurance or third-party liability insurance. You may compare and choose the best one when purchasing car insurance online. In this article, you will be explained about different types and kinds of car insurance plans so you can pick the most suitable for your vehicle.

Kinds of Car Insurance Policies

There is a lot of confusion among people when they are confronted with the idea of different kinds and types of car insurance policies. To make things simple and easy to understand we have made clear distinctions. Let us first discuss the kinds of car insurance as per their usage by different kinds of insurance seekers. You can choose between the two depending on how or how much you use your car:

They are as follows:

1. Car insurance for legal protection

As per the Motors Act, of 1988, all motor vehicles need to have a minimum of third-party car insurance to ensure basic road safety. A third-party liability cover helps you in case your vehicle causes damages or injuries to a third-party person or property. Generally, people who drive less frequently or have an old vehicle go for third-party car insurance as it ensures legal protection. Driving without third-party cover, you may have to face legal charges.

2. Car insurance for overall protection

When talking of overall protection, comprehensive car insurance is the ideal choice. It ensures maximum base coverage compared to all other car insurance plans. The plan covers its own damages as well as the damages caused to a third-party person or property. If you have a new car or you drive out on a regular basis, comprehensive car insurance can highly suit your needs.

Types of Car Insurance Policies

Car insurance online can be divided on the basis of coverage provided and on the basis of the purpose of the vehicle. Depending on the use of the vehicle, be it private or commercial, a car insurance plan can be divided as:

• Private Car Insurance

This is a kind of car insurance policy that is only applicable to private car owners. It safeguards the vehicle as well as the owner in case of accidents and even covers third-party liability.

• Commercial Car Insurance

This is a kind of insurance policy that protects the business from financial losses arising out of damage or accidental loss to the fleet of vehicles. It covers the legal liabilities, property damage and injuries to any third party. The driver of the vehicle is provided cover for accidental death and permanent total disability.

• Comprehensive Car Insurance

This is the type of car insurance policy that provides wholesome coverage. It pays for the loss that is incurred due to an accident involving the policyholder's vehicle, the legal liabilities that may arise out of the accident are also covered as well as any injuries to the driver of the vehicle or the third party are also covered. Typically, comprehensive car insurance policies are purchased by owners of new vehicles.

• Liability

Benefits of Car Insurance Policies

Why is a car insurance policy so essential and highly advisable? Do you really benefit from it? If these are the questions you are dealing with right now, here is an answer for you:

• Legal obligation

As aforementioned, a minimum of third party car insurance is mandatory as per the Motors Act of 1988. Hence, you must have a car insurance policy if you drive your car on the road. So, the very basic benefit of car insurance online is the fulfilment of the legal obligation.

• Save your hard-earned money

A four-wheeler is a hefty possession. Whenever you take out your vehicle, there are risks associated with getting it damaged. Sometimes, if the damages are severe, the repair cost can shoot high which might end up exhausting your hard-earned money. However, you need not worry about it if you have a car insurance policy.

• Mental peace

Any problem brings with it tons of mental disturbance. Heavy repairing expenses can also mentally exhaust you since you may have other financial commitments in life. So, a car insurance policy is there to ensure your mental peace even during high expenses. This is because your insurer is there to bear the admissible costs of the damages incurred.

• Covers not just accidents

Car insurance policies like comprehensive car insurance do not just cover accident-associated damages. It also covers a range of other conditions like damages or loss due to natural calamities, fire, total loss of the vehicle, theft, etc. So, it can be an all-round safety for you.

Conclusion

Nowadays, a car insurance policy is easy to purchase and is also affordable. Moreover, buying car insurance online saves a lot of your precious time by curtailing your time-consuming visits to the insurance provider's retail outlet. You may first pen down your needs and preferences and then compare the available plans. Once you have finalized a car insurance policy online, all you need is an internet connection and the required documents to quickly purchase it. Say yes to a car insurance policy, say yes to driving safety and security.

Disclaimer: The above information is for illustrative purpose only. For more details, please refer to policy wordings and prospectus before concluding the sales.

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