Car Insurance Types: Having an insurance policy for your vehicle is essential in India. In light of this, we’re here to explain the different types of car insurance. We’ll also explain which car insurance is best for you. We’ll also explain the benefits of purchasing these insurance policies.
If you own a car, the most important thing to drive it on the road is its insurance. It not only protects you from legal hassles but also compensates for any damage to the vehicle. If you’re planning to purchase new car insurance or own a new car, it’s important to know the various types of car insurance available in our country and which one will be the best for you.
How many types of car insurance are there?
There are four types of car insurance in India: Third-Party Insurance, Comprehensive Insurance, Simple Pay-Per-Use Insurance, and Own Damage Insurance.
1. Third-Party Insurance
Under the Motor Vehicles Act of 1988, third-party insurance is mandatory to drive in India. If you’re planning to buy a new car, it’s essential to purchase it. This insurance covers damage to the vehicle, bodily injury, or death resulting from a car-related accident. You can also understand it this way: if your car collides with another vehicle and causes property damage or injury, the loss is compensated by the premium you pay for the vehicle insurance policy.
2. Comprehensive Insurance
This insurance is one of the most popular car insurance policies, which vehicle owners choose based on their convenience. This insurance provides coverage for both third-party liability and damage to your own car. This car insurance provides complete protection against damage caused by accidents, fire, theft, floods, and other natural disasters. You can add it to your car insurance as an add-on cover.
3. Simple Pay-Per-Use Insurance
This car insurance is best for those who use their car infrequently. Under this policy, you pay premiums only for the number of days you use your vehicle, i.e., those who own their car for a limited period of time.
4. Own Damage Insurance
This insurance policy is not legally mandatory, but having this car insurance ensures you will be covered for any damage to your vehicle caused by a road accident. It provides coverage for bodily injuries or death resulting from an accident involving your car.
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