Which Car Insurance Is Better?
There are three types of car insurance plans in India, namely comprehensive car insurance, standalone own damage car insurance, and third party car insurance. Read more to know more about these plans and which one is better of them all.
Table of Contents
Car insurance is essential for all car owners and drivers in India. As per Indian Motor Tariff Act, the owner must have at least a third party cover to be able to drive legally on the Indian roads. But what is a third party car insurance plan? Are there any other types of car insurance plans? And is there any other cover that is mandatory in India? Read ahead to find the answers.
Types of Car Insurance Plans In India
There are three types of car insurance policies in India:
-
Third Party Car Insurance Policy
As the name suggests, a third party car insurance plan covers you for third party liabilities arising due to accidental bodily injuries, death or property damage to a third party. It is mandatory by law in India and is the most affordable one of all. But note that the policy does not cover you for any loss or damage suffered by the insured car or its driver.
-
Standalone Own Damage Car Insurance Policy
Standalone own damage covers you only for damages sustained by your own car in the misfortune event of an accident, natural or man-made calamity like explosion, theft, fire, etc. It is not mandatory to buy this policy but it is useful as it protects your vehicle unlike third party car insurance policy. You are free to choose a standalone own damage car insurance policy from any insurance company in the market that offers it.
-
Comprehensive Car Insurance Policy
Comprehensive car insurance policy offers the most extensive coverage to your car. It protects you from third party liabilities as well as expenses arising due to damages sustained by your own car. These include risks arising due to accidents, vandalism, theft, fire, and other natural or man-made disasters. It is not mandatory by law but is recommended as it offers complete protection. There is a myth that comprehensive car insurance plans often come with high premiums. But this is not always true. There are many insurance companies offering affordable comprehensive car insurance plans as well.
Difference between Types of Car Insurance Policies
Understanding the difference between these car insurance plans is important so that you can identify which one is better for you. Refer to the table below to understand the same:
|
Coverage |
Third Party Liability Car Insurance |
Standalone Own Damage Car Insurance |
Comprehensive Car Insurance |
|
Third party property damages |
Yes |
No |
Yes |
|
Bodily injuries/disability death of third party |
Yes |
No |
Yes |
|
Third party car damages |
Yes |
No |
Yes |
|
Loss/damages to the insured car due to accident |
No |
Yes |
Yes |
|
Loss due to theft of insured car |
No |
Yes |
Yes |
|
Loss/damage to insured car due to a natural or man-made calamity or fire |
No |
Yes |
Yes |
|
Personal accident cover if opted |
Yes |
Yes |
Yes |
|
Mandatory by law |
Yes |
No |
No |
|
Add-on covers |
No |
Yes |
Yes |
|
Zero depreciation cover if opted |
No |
Yes |
Yes |
Takeaway
When buying a car insurance policy online, you must check a few factors, irrespective of which policy you choose to buy. These factors include policy features, inclusions, exclusions, policy term, add-on covers, premium, etc.
If you are still unable to choose the best car insurance policy for your car at affordable premiums, then you can get in touch with the customer care executives at InsuranceDekho on the toll-free number 7551-196-989. The executives will understand your requirements and help you buy the best policy on time.
Also Read:
5 Most Important Sections In Car Insurance Policy Wordings
Top Factors That Determine The Premium of Your Car Insurance Plan
Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.
