What are the different Types of Car insurance in India?

Posted on: Nov 10, 2021 | | Written by:

What are the different Types of Car insurance in India?

Published on November 10, 2021. EST READ TIME: 3 minutes

Know more about types of car insurance

Having a valid insurance policy for your car acts as a financial backup and also gives you a sense of security while driving. It gives you a sense of freedom and independence as you no longer have to plan your itinerary around flights, trains or buses. However, emergencies always come unannounced. You might meet with an accident or your car might suffer a breakdown. That is when a valid car insurance policy comes to your rescue. There are some types of car insurance which can aide you in purchasing the best car insurance policy for your car.

Third party:

Third-party insurance is a mandatory requirement under Indian laws, and it covers all legal and accidental liabilities, and property damage as well, caused by accidents. Since it is a legal requirement, most insurance service providers offer third-party insurance as part of car insurance policies they issue. The third-party car insurance price is less than the comprehensive insurance cover because of the lower extent of coverage.

As stated under the Motor Vehicle Act 1988, a person must get at least third-party online vehicle insurance. Having this insurance cover is a legal requirement, without which any car owner will have to pay a traffic fine or face the legal consequences. Therefore, it is advisable to immediately get third-party car insurance online.

Standalone own damage cover:

This type of car insurance covers your vehicle only in the case of a collision. So, it would pay for the repair of your car only if it’s damaged in a collision with another vehicle or object. The standalone own damage cover provides financial coverage against damage to your own vehicle in case of an accident or natural or manmade calamity. It also protects against theft. This is the perfect partner to your third-party car insurance policy. The choice of add-ons further enhances your coverage.

Comprehensive policy:

This type of coverage gives the highest level of protection as it includes liability for third parties, damage to own vehicle, personal accident cover, and all non-collision damage such as storms, floods, fire and theft. You can further enhance a comprehensive car insurance policy with a choice of add-ons. The comprehensive car insurance also covers third-party claims. Hence, if a third party is affected by the first party’s insured vehicle, which includes injuries, property damage or loss of life, then the second party will settle the claim on the first party’s behalf.

Moreover, the comprehensive insurance cover can be customized to take care of certain damages with the inclusion of add-ons selected by the policyholder.

Private car bundle policy:

This plan has been designed by the experts for your convenience. Get a 3-year third-party cover and a yearly own damage cover in one package to ensure you’re seamlessly protected even when your own damage cover expires. Simply renew the own damage cover to enjoy comprehensive protection.

Add-on covers:

There is a LIST OF ADD-ONS that you should consider adding to the insurance policy before heading on a road trip. They come at a cost, but they offer added personalized protection. These add-ons include roadside assistance to bail you out of trouble in case your car breaks down in an unknown place, passenger cover for fellow passengers in case of an accident, zero depreciation cover, etc.

Benefits of buying car insurance policy:

It pays for damages to your own car as well as damages caused by you to the other person’s car or property say in a collision or crash.
Pays for the medical expenses of the driver as well as the co-passengers (in case of the passenger protection add-on).
It pays for damages to your own car as well as damages caused by you to the other person’s car or property say in a collision or crash.
By Indian law, you are not allowed to drive a vehicle without a valid insurance failing, which can invite serious consequences. A valid cover prevents you from getting into legal issues unnecessarily.

Before you choose a car insurance policy, it is important that you assess your requirements carefully and also estimate the maximum amount of premium you can afford. Depending on these factors, you can choose the type of car insurance policy that would suit your requirements the most.

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

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