Understanding Different Types of Car Insurance Coverage

As a car owner, you must ensure your vehicle is well-maintained, and you follow traffic rules and drive carefully. Sometimes, even if you take all necessary measures, accidents tend to occur due to mechanical problems, damaged tyres or natural calamities like floods and earthquakes and poor road conditions to name few. Car insurance is important to cover damage costs during such incidents.

We will look at some of the numerous car insurance plans available today to help you make the best financial decision.

Importance of Car Insurance

The roads in India range from quiet country roads to busy urban ones and well-kept highways. Accidents can happen whenever and in any area. Car insurance fills in as a financial security, safeguarding you from the obligation of paying for harm, medical services costs or lawful commitments coming about because of accidents.

Car insurance can help you in the following ways:

• Financial stability:

  For example, if an accident in your car takes place, this coverage will be activated, and it will cater for the maintenance and replacement expenses incurred.

• Third-party liability coverage:

  In situations where personal injuries to third parties are sustained or their properties are damaged, this policy stands in for the financial liabilities arising out of any mishap occurred due to third party liability.

 Also Read: Useful Tips to Consider When Buying Insurance for Your New Car

Types of Car Insurance Coverages and Add-on

Insurance coverage relates to the different monetary assurances that are presented for your car. Notwithstanding standard inclusion, you have the choice to choose different extra elements to help the degree of security given by the approaches. First, we’ll discuss the five types of car insurance coverage available in India:

• Third-Party Liability Only Cover:

With this vehicle insurance contract, you will get the following benefits:

• Costs for fixing or replacing the 3rd party’s vehicle that was harmed.
• Costs brought about for hospitalisation and clinical consideration for the 3rd party involved.
• Legal liabilities brought arising out of bodily injury or death of third part, including passengers and pedestrians due to an accident caused by the insured vehicle. Having third-party liability insurance is the minimum legal requirement under the Motor Vehicles Act of 1988. All vehicle owners need to have it in order to avoid any legal obligations.

• Collision Damage or Own Damage (OD) Cover:

The insurance company compensates for the repair or restoration of the damaged car. These rates commonly depend on the RTO)

Also Read: How to Select Car Insurance Tailored to Your Needs!

• Personal Accident Cover:

If in an accident, the driver is injured (or the owner of the car), this add-on cover comes into play. It covers the cost of hospitalisation and several other medical expenses.

• Zero Depreciation Insurance:

In India, this kind of coverage is frequently offered as an additional option with car insurance plans. Imagine that you need new parts for your wrecked car. When processing claims, the insurance company will consider the components’ decreased value. You will receive the full claim amount if you have zero depreciation coverage, as there is no expenditure depreciation included.

• Comprehensive Car Insurance Coverage:

The Comprehensive Car Insurance gives the most extensive assurance by covering your vehicle against any man-made activities such as robbery/theft/vandalism and natural calamities such as floods, earthquakes. It can also be upgraded with the help of add-on policies which provide additional benefits along with the fundamental protection that the plan provides.

Conclusion

Now that you are aware of the many kinds of car insurance that are out there, evaluate your demands and carefully consider your budget. Compare the various types of coverages and their premium costs choose the one that is perfectly apt for your needs and traverse the roads with confidence!

Contact our experts by calling 1800 266 9693 or emailing support@elephant.in if you have any questions. Visit Elephant.in for the best car insurance plans!

*Terms and conditions apply. The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. You are recommended to obtain specific professional advice from before you take any/refrain from any action. Tax benefits are subject to changes in tax laws. Please contact your tax consultant for an exact calculation of your tax liabilities.| EL/BLOGS/24-25/12