What Are The Various Types Of Car Insurance Policy Available In India?

You use a car to commute to work, go on trips with your family, do chores, and visit with friends. You keep your automobile in good condition, obey the law, and drive courteously if you're a responsible car owner. You thus want to be able to drive your car without having to think about anything. Despite your best efforts, your automobile could run into unforeseen road dangers like major or small accidents, etc. To know more about the types of car insurance policies available in India, read on.

What Do We Mean By Car Insurance?

The best solution to reduce financial strain in these circumstances is car insurance. All forms of car insurance, whether purchased online or in person, provide coverage for monetary losses brought on by unfortunate incidents involving your vehicle, subject to the particular terms and conditions of your policy.

What Are The Types Of Car Insurance Available In India?

Following are the types of car insurance available in India -

1. Third-Party Car Insurance - The Motor Vehicles Act mandates this insurance in order to use a vehicle on public highways. The sum assured must be adequate for the road conditions and sufficiently substantial to cover all of your out-of-pocket costs.
2. Collision Damage Or Own Damage (OD) Cover - The price of fixing your damaged car is covered when you pick collision damage auto insurance. The age of the vehicle and the insured declared value are factors that are taken into account when determining the collision coverage premium. The IDV is based on the market value of the vehicle. The IDV less accumulated depreciation establishes the maximum amount payable under the policy in the event that a claim for collision coverage insurance is lodged. You need to get collision insurance if you financed your car. If your insurance policy includes collision coverage, the insurance provider will pay for your vehicle's repairs following an accident.
3.  Personal Accident Cover - When you wish to protect yourself, the car's owner-driver, by choosing to be compensated for medical expenses incurred as a result of an accident, you employ personal accident vehicle insurance coverage. You can include supplemental coverage to reduce particular risks in addition to the mandatory liability insurance.
4. Zero Depreciation Car Insurance - This kind of protection is often provided as an add-on to an automobile insurance policy in India. Assume that you need to fix the parts since your automobile was damaged. The insurance will factor in the components' depreciated value when settling claims. You will be given the full amount of your claim with a Zero Depreciation Car Insurance Coverage since cost depreciation will not be taken into consideration.
5. Comprehensive Car Insurance - Since it covers any non-collision damage, including storm, flood, fire, and theft, as well as third-party liability and damage to one's own vehicle, this sort of auto insurance offers the greatest level of protection. Several add-ons are available to complement comprehensive auto insurance coverage. Comprehensive insurance coverage will cover all hazards involving your vehicle, you as the driver, your passengers, and third parties vehicles, drivers, passengers, and property. Several concerns that are not covered by the auto collision will be covered by the comprehensive coverage. Depending on your financial condition, you may want to obtain comprehensive insurance coverage.

Is It Essential For Someone To Have A Car Insurance?

According to the Indian Motor Vehicles Act, all automobile owners and drivers must carry at least third-party insurance when operating a vehicle. You may pick the vehicle insurance options that best meet your needs, though.

Endnotes

To minimise risk and maximise benefits, automobile owners need to be well-versed in the many options for auto insurance coverage. Mandatory liability insurance is the least expensive option, but it does not safeguard the rights of the policyholder. Therefore, the insurance plan should be selected based on the car's model.

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