Types of Car Insurance Policies In India

Planning to buy a new or renew existing car insurance policy? Read on to know more about types of car insurance policies in India:

Types of Car Insurance Policies In India

A car is more than an asset or liability in India. A lot of emotions, feelings and memories are connected with a car, and hence people try their best to protect their cars from all possible threats. Starting from timely checkup, maintenance, cleaning to service packages, people do spend their good amount of time and money for the same. However, car insurance is one such aspect where people fail to understand most of the times.

While looking for car insurance renewal online or at any nearby office, people look for something cheap and best. The pay more attention towards lesser premium and maximum IDV, however many fail to understand the technicalities and end up in buying a less useful car insurance. If you are planning to buy a car insurance online, do a thorough research and get the best information before buying the policy.

Read on to know more about types of car insurance policies in India:

Car Insurance – Why we need them?

The Indian laws have made it compulsory for every new car buyer to get an insurance coverage policy against third parties in a situation of claim arising from injury or even death. And hence, every car buyer has to get a new car insurance policy before taking the car out of the dealer’s premises. These policies are valid for one year only, and one has to get them renewed annually as a compulsion.

Types of Car Insurance Policies In India

Types of Car Insurance Policies

Basically, there are two types of car insurance policies.

  1. Third Party Insurance
    As the name suggests, these car insurance policies offer limited coverage and protection against damage to property or injury/death to/of third party only. In such circumstances, you are liable to pay for the damage or injury caused by your car. And being a car owner, you and only you are liable for such cases. However, the third party policies are there to help you with the same.But the third party policies won’t cover your car in case of any theft or damage caused because on an accident. These are less expensive as their premium amount is less than the comprehensive insurance. Also, the Indian law has made only third-party insurance as a compulsion for every car owner. And hence, you can opt for this one if you want to spend less right now, and can take risk by leaving your car uncovered without an insurance policy.
  2. Comprehensive Coverage 

    Going with the name, it can be easily understood that the comprehensive car insurance policy covers everything, including the minimal required coverage of losses to a third-party and the vehicle itself. Better than the third-party car insurance policy, the comprehensive car insurance covers your car against theft or any damage caused due to an accident. It also covers the injuries caused to the owner of the car.Nowadays, the comprehensive car insurance policies also cover the car’s keys, and small add-on packs are always there to boost-up the policy. One can buy an add-on to get a worthy personal accidental or life insurance, combined together with the car insurance policy. If you are looking for car insurance quotes online, don’t forget to enquire about the comprehensive car insurance policies as they are always better than the third-party insurance policies.

Which type of car insurance policy you prefer the most? Do share your thoughts and comments in the section below.

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