Car insurance types in India: All you need to know
- There are different types of car insurance policies available in Indian market, but the comprehensive insurance is the most popular among them.
Car insurance is one of the most important components required if you are planning to buy and own a personal car. Car insurance is not only mandatory by law of the country but it provides financial protection against unexpected expenses arising from accidents, theft or a wide range of damages to the vehicle. There is a diverse range of car insurance policies available in the Indian market. However, the most common types of car insurance available in India are third-party and own damage.
To understand what kind of car insurance you should purchase for your personal car, it is important to understand how the insurance coverage works. This will not only help you to make an informed decision but will enhance your vehicle's security adequately.
Also Read : How to find and select the right car insurance policy: Key tips
Third-party insurance is mandatory in India under the Motor Vehicles Act 1988. This insurance policy is something you have to purchase mandatorily if you are planning to own a car. Third-party insurance provides coverage for damages caused to a third-party vehicle, property or any physical injury or death resulting from an accident that involves your car. However, third-party insurance doesn't provide any coverage for the damages to your own vehicle or any physical harm you may suffer due to an accident that involves your car.
An own damage insurance policy is not mandatory by law but is essential to ensure that any damage to your vehicle resulting from any mishap on the road will be covered. It also comes ensuring coverage for the physical injuries or death caused by the accident, involving your vehicle.
Comprehensive insurance is one of the most popular car insurance policies that vehicle owners opt for. This type of insurance policy provides comprehensive coverage for both third-party liability and damage to your own car. A comprehensive insurance policy safeguards the vehicle owner against damages arising from theft, fire, natural disasters, accidents, and other unforeseen incidents. While comprehensive insurance is not mandatory for vehicle owners by law, it is highly recommended to opt for comprehensive coverage, which will ensure peace of mind.
