5 min read
Updated on Jul 13, 2022
Buying an insurance policy for your car is a significant task, especially when you are doing it for the first time. The fact that a large number of companies are offering different types of car insurance, is a good enough reason to get confused and overwhelmed while looking for a suitable insurance policy for your vehicle.
Further, it is also important to consider different aspects that your car insurance should cover to fulfill your requirement in an efficient way. The different types of vehicle insurance cover that your car insurance agency should provide should be pertaining to driving conditions, condition of the vehicle, third-party needs as well as conditions that are specific to the driver.
However, it is also important to note that the premium of an insurance increases depending on the coverage it offers. Thus, you must customize your insurance plan in a way that it covers all the important features while removing the ones that are not required.
In this article, we will discuss about the 5 different types of car insurance coverage that are available for your vehicle. However, before going into the details of the types of car insurance coverage, let’s first understand the meaning and the requirement of an insurance coverage.
An insurance coverage is the protection against any kind of risk and liability offered by an insurance company to protect a person or a unit for any damage or mishap. An insurance coverage is required to assist in case of any emergency or financial loss that you might face.
Buying a car insurance is necessary as it is mandated by the Motor Vehicles Act, 1988.
Here we are discussing 5 types of vehicle insurance policies that you can choose for your vehicle and the points to remember while choosing the best insurance coverage for your car.
The liability insurance is a type of car insurance that safeguards the driver if an accident takes place because of any fault or negligence of the driver.
A liability insurance plan offers the following advantages:
The collision coverage is a type of vehicle insurance that covers the cost for the damage of your car after an accident. Subscribing for this cover will let you have your insurance company paying for your car repairs. It covers the following:
The personal injury coverage is an additional cover to protect against certain risks. One can opt for this type of vehicle insurance along with the insurance cover for compulsory liabilities.
Thus, the Personal Injury coverage allow you to make the most of your insurance plan by making it cost-worthy.
The Uninsured Motorist protection help you pay for repairs in case of an accident where the damages are caused by the other driver who doesn’t have an insurance cover to pay off.
This is specifically helpful in case the insurance policy of the third-party is not adequate to meet the requirement for the damage. This protection can be even used for an extra rider to limit your exposure.
In this type of car insurance policy, the insurance agency will pay off the additional charges to minimize your costs on medical and other damages.
This is an all-inclusive protection or full coverage car insurance to cover for all types of risks linked to your car, the person who is driving, the people who are sitting in the car at the time of the accident, the damage to the vehicle of the third-property, and the people sitting in the third-party vehicle.
Moreover, it also cover the following risks:
Depending on your budget, you can purchase the Comprehensive or full coverage car insurance plan. Moreover, you can even use devices like anti-theft in your vehicle as well as other security tools to limit the premium amount quoted by the insurance company.
Let us now discuss some of the important aspects that needs to be taken into account while buying an insurance.
In general, when you opt for an insurance – be it compulsory, comprehensive or any other policy – the basic requirements that needs to be noted are related to budget, risk protections, features and benefits, among others.
Depending on the need, you should buy the best insurance plan for your car offering maximum advantages and covering maximum risks. Rather than choosing a cheaper option, it is better to opt for a policy depending on the value and make of your car. Here, it is best to compare different policies before opting for the one that suits your car best. So tread well and evaluate your options well while choosing an insurance for your car.
PayBima is an Indian insurance aggregator on a mission to make insurance simple for people. PayBima is the Digital arm of the already established and trusted Mahindra Insurance Brokers Ltd., a reputed name in the insurance broking industry with 17 years of experience. PayBima promises you the easy-to-access online platform to buy insurance policies, and also extend their unrelented assistance with all your policy related queries and services.
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