Car insurance is a vital shield for vehicle owners against unexpected financial burdens. In a world of uncertainties on the road, car insurance provides financial protection and peace.
It ensures that you are prepared for accidents, damages, and liabilities that may arise.
Why car insurance is essential?
Car insurance mitigates financial risks associated with accidents, damages, and third-party liabilities.
In case of accidents, insurance covers repair costs, medical expenses, and legal obligations.
Car insurance shields your savings from unforeseen vehicular incidents.Without insurance, you could face substantial financial setbacks in the aftermath of an accident.
Types of car insurance policies in India
There are three types of car insurance policies available in India. Check the details of the policies below.
| Types of car insurance policies | Specifications |
| Comprehensive car insurance | Comprehensive car insurance is the most extensive coverage available for vehicle owners. This policy offers protection against third-party liabilities as well as damage caused to one's vehicle due to accidents, natural calamities, theft, and fire. It also covers the costs of hospitalisation for driver and passengers, towing charges, and personal accidents cover. |
| Own damage car insurance | Own damage car insurance is a type of coverage that protects the insured's vehicle from damage caused due to natural disasters like floods, earthquakes, and storms. It also covers losses incurred from man-made incidents such as theft, riots, and accidents caused by drivers who are uninsured. |
| Third-party car insurance | Third-party car insurance is a basic coverage required by law in India. It protects against any legal liability to a third party caused due to accidents resulting in bodily injuries, property damage, or death. It does not compensate for any damage caused to the insured's vehicle. |
Types of car insurance add-ons in India
Roadside assistancecover
Provides roadside assistance emergency aid for breakdowns, flat tyres, towing, or accidents, ensuring peace of mind on the road.
No claim bonus (NCB) protector
Preserves your No Claim Bonus (NCB) even after making a claim, reducing future premium costs.
Consumables cover
Covers costs for consumable items like oil, nuts, and bolts, reducing out-of-pocket expenses.
Key replacement cover
Covers expenses for lost or stolen car keys, a common inconvenience.
Daily allowance benefit
Provides a daily allowance for alternate transportation while your car is under repair.
Five types of car insurance coverage in India
Here are 5 types of car insurance coverage:
1. Third-party liability insurance coverage
- Mandatory by law, covers damages and injuries to third parties.
- Offers financial assistance for legal proceedings arising from accidents.
2. Comprehensive car insurance coverage
- Encompasses third-party liability and own damage coverage.
- Protects against theft, fire, natural disasters, and collisions.
- Offers peace of mind with comprehensive protection.
3. Personal accident cover
- Provides compensation for the policyholder's injury or death due to an accident.
- Includes coverage for permanent disabilities and accidental death.
4. Zero depreciation insurance
- Ensures full claim amount without considering vehicle depreciation.
- Ideal for newer cars, saves money on repairs after an accident.
5. Engine protection cover
- Safeguards against repair costs for engine damage due to water ingression or oil leakage.
- Offers additional financial protection for unexpected and costly engine issues.
