Third-party liability car insurance is a legal and mandatory requirement for all vehicle owners in India as per the Motor Vehicles Act, 1988. Choosing the right car insurance plan can be overwhelming for first timer as well as for the existing car owners. In this article, we’ll explore the different types of car insurance plans available in India, their benefits and what to consider when selecting a policy.
Different types of car insurance plans
Here’s the list of different types of car insurance plans in India:
Third-party liability insurance
Third-party liability insurance is the most basic and legally mandatory type of car insurance in India. It covers damages pertaining to third-party property or injuries to third-party individuals in the event of an accident. However, this policy does not provide coverage for damages to your vehicle.
Comprehensive insurance
Comprehensive insurance provides extensive coverage for your car, including damages caused by accidents, natural disasters, theft, and more. It also includes third-party liability coverage. Comprehensive insurance is ideal for those who want complete protection for their car.
Own damage insurance
Own damage insurance provides coverage for damages to your car. This policy can be purchased as a standalone policy or as an extension to a third-party liability policy.
Personal accident insurance
Personal accident insurance provides coverage against death or disablement in the event of an accident. This policy can be purchased as an add-on to a comprehensive insurance policy.
Key add-on covers to consider with car insurance
Here are some key add-on covers that can be considered along with car insurance in India:
Depreciation cover
Depreciation cover covers the cost of depreciation deducted from the cost of repairing or replacing the parts. It is generally available and can be purchased as an add-on cover to a comprehensive car insurance policy.
Engine Protect cover
Engine Protect cover offers coverage for damages to your vehicle’s engine caused only out of water ingression/leakage of lubricating oil which directly cause loss or damage to the aforesaid parts. It can be purchased as an add-on cover to a comprehensive car insurance.
Roadside Assistance cover
Roadside Assistance provides emergency services, such as flat tyres, arrangement/supply of fuel, battery jump start, etc. in the event of a breakdown. It can be purchased as an add-on cover to a comprehensive car insurance policy.
What to consider while choosing a car insurance plan
When selecting a car insurance plan, consider the following factors:
Coverage: Choose a right car insurance plan that provides adequate coverage for your vehicle and financial situation.
Premium: Compare insurance premiums to ensure you’re getting the best rate.
Deductible: Consider the deductible amount and how it may impact your out-of-pocket expenses.
Policy limits: Ensure the policy limits align with your state’s minimum requirements and your financial situation.
Insurance provider: Research the insurer’s reputation, customer service, and claims settlement process.
The Final Note
Choosing the right car insurance plan can be overwhelming, but understanding the different types of plans available can be helpful for future consideration. You can select a plan that meets your needs and provides adequate protection for your car in unforeseen circumstances by considering factors. So, don’t forget to buy a car insurance while driving on the road.
