Know all about the different types of car insurance policies
When buying a car, one of the most important ‘steps to follow’ is buying the right type of insurance. If you are looking for auto coverage, knowing about the details of car insurance plans can help you in selecting the best plan for your car. To select the best car insurance policy, you first need to know the various types of car insurance plans that are available. Once you know about them, it would be easier for you to see which plan suits your requirements the most.
A comprehensive Car Insurance policy covers both third-party legal liabilities that are mandated by the law as well as own car damages. This is the highest type of insurance policy and would certainly give you peace of mind while driving.
At the time of an accident, the insurance will protect you against the losses caused. Comprehensive cover will not only cover the vehicle collision and the other risk factors but will also bear the expenses of the third-party damages. The insurance will take care of the damages which are caused due to theft as well as manmade and natural calamities. Thus, Comprehensive Insurance Plans will provide you with complete vehicle protection.
Add-On Covers Available
Along with the other covers, adding the add-on to your car insurance further enhances the cover provided. There are different options available that give optimum protection to you and your vehicle. Add-on covers help you get services like Roadside Assistance, Engine Replacement and Nil-Depreciation Cover.
In case someday your vehicle breaks down in the middle of the road or in the middle of nowhere, the insurance company will send its technicians to move your car to the nearest service/repair station.
Under the Engine Replacement add-on, the engine of your car when damaged will be replaced.
Also called ‘zero-dep’, zero depreciation is an add-on plan where you can receive a claim without the element of depreciation. It means that you will receive a full claim if your car gets involved in a collision. This is a very important add-on as depreciation is not considered.
No claim bonus is a reward for you if you do not make an insurance claim throughout the year. Many companies give a reward of 50% discount on the renewal.
Personal Accident Cover
As per the Motor Insurance policies of the government, Personal Accident Cover is mandatory. Under this add-on, the owner as well as the driver are covered not only for death but also a disability. The compensation scale ranges between 50%-100%.
Third Party Insurance
While driving your car, if you happen to meet with an accident and cause damage to someone’s car or their property, then you are liable to make a payment for the same. To cover the legal liabilities, third-party car insurance policies are available.
Thus, Third Party insurance policies do not provide coverage to any damages for your own car but it pays for all legal liabilities that you might have while driving. This type of policy is mandated by the law and compulsory to have to ply your vehicle on the Indian roads.
Third Party car insurance policy is the cheapest form of car insurance and provides ONLY third-party coverage.