5 min read
Updated on Feb 28, 2023
The thing with car insurance is that it is just like all other insurance policies out there. However, it does have its difference from the other forms of insurance as well. It is mandatory for people who own a vehicle of some sort or the other. As the name of these policies would suggest – these apply to all motor-driven vehicles in India such as motorcycles, jeeps, cars, and commercial vehicles, to name a few.
So, you now have a clear answer to this question – what is vehicle insurance? Now, you may be wondering why the government has made this mandatory. Well, the national government of India has done this so that you – the owner of a car – as well as other car owners on the road, can be safe. When you compare the advantages that you get from these policies in case anything goes wrong, the money you pay as a premium each year simply pales in comparison. A lot of people think that car insurance only covers the vehicle that has been insured but that is a wrong idea.
These policies are normally classified based on the kind of vehicle that you are insuring as well as the sort of coverage that you are looking for.
When you think of the different types of motor insurance that you get in India this is perhaps the first name that comes to mind. This is the sort of car insurance that you need to take if you have a private vehicle. Such a policy would cover your car for the damages that it may sustain owing to the likes of accidents, natural disasters, fire, and theft, to name a few. It can also cover you – the owner of the car – in case you suffer any injury while you are in the car.
This is also one of the various types of vehicle insurance that are available in India. As the name of the policies would suggest, they cover two-wheelers such as bikes and scooters. These policies too provide your vehicle coverage against damages that may be sustained in accidents, natural disasters, fire, theft, etc. It also provides coverage for injuries and damages suffered by a third party in an accident involving your vehicle. Such policies are also legally obligated to provide you with personal accident coverage. Such coverage can extend to the passengers as well.
When you think of the most prominent types of motor insurance policy in India these rank right up there with the best. As the name would suggest, they are not supposed to cover the vehicles that you own personally. Such insurance covers a wide range of vehicles such as the following:
When you think what are the types of motor insurance in terms of the type of coverage this is the one that comes to mind first. This is simply because these are the ones that have been made mandatory by the Indian government for all vehicle owners. These policies would only provide coverage for the losses and damages suffered by a third party, their property, and their vehicle in an accident.
The comprehensive car insurance policies are perhaps more valuable than the third-party policies since they cover the damages sustained by third parties as well as you – the policyholder.
So, if you are looking for the best type of motor insurance policy in India this is something that you should consider seriously.
The following table provides you with an idea of the kind of coverage that you can expect from these two types of policies:
|Coverage||Provided by comprehensive policies||Provided by third-party policies|
|damages and losses to your vehicle in an accident||Yes||No|
|damages and losses to your vehicle in a fire||Yes||No|
|damages and losses to your vehicle in anaturaldisaster||Yes||No|
|damages to vehicles of third parties||Yes||Yes|
|damages to the property of third parties||Yes||Yes|
|personal accident cover||Yes||Yes|
|death or injuries of the third party in an accident||Yes||Yes|
|theft of your car||Yes||No|
|pick-up and drop at doorstep||Yes||No|
|customizing your IDV (insurance declared value)||Yes||No|
|customized add-ons for additional protection||Yes||No|
The comprehensive vehicle insurance policies provide you with a wide range of add-ons such as the following:
So, now you know why these are among the most popular types of vehicle insurance out there.
The zero depreciation cover is one of the major reasons why comprehensive policies are the most-bought types of motor insurance policy in India. With this coverage, you can make sure that the value of your car never depreciates. The engine protection cover helps you financially against the damages suffered by the engine of your vehicle. With the help of roadside assistance, you can be sure that you would get help for your vehicle no matter where and when you are stranded.
Read More: Who is a ‘First Party’ in car insurance policy
So, now we can assume that you know motor insurance meaning and its various varieties. Now, you may be wondering why someone should insure their car comprehensively when they personally stand to gain basically nothing from it. Well, there are certain situations where a third-party policy can turn out to be the wiser choice for you. This is especially when you do not use your car every day. With such occasional usage, the chances of an accident are also reduced drastically. Also, in case you are looking to sell your car soon, it makes no sense to pay the high annual premiums that the comprehensive policies entail.
Also Read: Cheapest Car Insurance Plans in India From Popular Car Insurers | BS4 vs BS6 Engine – What is the difference between BSIV and BSVI engine?
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