Third-party auto insurance is required by law, but experts always recommend comprehensive coverage. However, if you buy in a hurry, comprehensive insurance If you have an insurance policy that does not provide the coverage you need, you may find yourself paying unnecessary premiums without being covered in the time you need it. To make the right choice, you need time to understand what coverage you are legally required to have and which insurance will be most effective in the event of a financial crisis. In addition to the basic coverage provided under the policy, there are various add-ons to enhance your level of protection. So let’s discuss how to choose from different forms of car insurance to help you decide on the ideal choice.
About car insurance
Auto insurance protects you financially against liability for injury and property loss caused by third parties and covers damage to your vehicle. It also covers damages suffered by you or your passengers in an accident, collisions caused by underinsured or uninsured motorists, and medical expenses incurred as a result of an accident. Your insurance covers you up to a certain amount, subject to limits agreed upon by you and your insurance company.
Top 5 Different Types of Auto Insurance Coverage
Described below are some of the main types of insurance coverage.
Third party liability insurance
Third party liability coverage is required under the Motor Vehicle Law. As required under motor vehicle law, third-party insurance is essential to legally driving on public roads. This type of policy covers –
- Expenses incurred to repair or replace a third party vehicle.
- Hospitalization and Third Party Medical Expenses.
- Liability arising from the death of a third party.
bodily injury compensation
If you choose to be reimbursed for medical expenses incurred as a result of an accident, personal accident auto insurance coverage is used to protect yourself, the vehicle owner. In addition to the required liability insurance, you may choose to include additional coverage to mitigate certain risk factors.
- All costs incurred due to an accident are covered by personal accident insurance.
- Medical expenses for drivers and other passengers are covered under this coverage type.
- Insurance companies pay for medical expenses regardless of who is at fault.
- Get personal injury protection for car owners, drivers and passengers to get the most out of your investment.
comprehensive coverage
A comprehensive insurance policy provides maximum coverage. This type of auto insurance offers the best protection as it covers third party liability, bodily injury, damage to your own vehicle and non-collision damage such as fire, storm, theft and flood.
Comprehensive insurance covers all liability related to the vehicle, driver, passengers, third party drivers, third party passengers and third party property. This type of insurance also covers losses due to fire, weather damage, theft and flooding.
Comprehensive coverage addresses a range of issues that auto collision insurance doesn’t cover. Keep in mind that your decision to get comprehensive car insurance also has a lot to do with your financial situation, as premiums for this type of insurance are usually high. Installing anti-theft devices and other security-enhancing technologies can help lower the rates offered by insurers.
Collision or Own Damage (OD) Compensation
Collision or self-injury coverage includes the costs associated with repairing the damaged vehicle. The age of the vehicle and his IDV or declared value are important factors considered when determining the premium for collision coverage. A car’s market value forms the basis of his IDV.
IDV, after deducting incurred depreciation, sets the maximum amount that will be paid under the policy when a collision insurance claim is made.
- If you are funding a car, you should have collision insurance.
- If the policy provides for collision coverage, the insurance provider will pay for the repair of the insured’s vehicle in the event of an accident.
- In some cases, the cost of repair may exceed the current market value of the vehicle. Therefore, in such circumstances, the insurance company will provide coverage equivalent to the current market value of the car.
- Unlike comprehensive insurance, collision coverage should be obtained according to the age of the vehicle. Also, if you buy insurance for a new car, make sure it includes collision coverage.
- Collision coverage for older vehicles can be minimized as much as possible.
Zero depreciation
Zero car depreciation In India, additional coverage is often offered on top of basic car insurance. Let’s say your car is damaged and needs to be repaired. The depreciated value of the part will be considered by the insurance company when resolving claims. Zero depreciation auto coverage ensures that the full amount of your claim is reimbursed without taking depreciation into account.
This type of car insurance offers the best protection as it covers accident coverage, third party liability, car damage and all non-collision damages such as theft, storms, fires and floods.
Not all types of auto insurance coverage are suitable for everyone. A thorough understanding of your needs and insurance plan details is essential to choosing the plan that best suits your special preferences and avoiding disappointment. We recommend investing in a comprehensive insurance plan. This is to provide vehicles with the widest level of coverage at the most cost-effective price.
Disclaimer: The above information is for illustrative purposes only. For more information, please refer to the policy language and prospectus before closing the sale.