The Motor Vehicle Act has made third-party insurance mandatory for all motor vehicles. But to better meet the needs of the car owners, insurers now offer a host of different coverage options.
You can browse through these options to select one that best suits your requirements. So, what are the popular car insurance coverage types you should consider? Here is a list of top 7-

  1. Liability Only Coverage:
  2. This is your basic third-party coverage mandatory by law. In case of an accident, a liability-only coverage will protect you against third-party damages, injuries, and losses. But you will be responsible for your own damages and injuries.

  3. Comprehensive Coverage:
  4. Comprehensive coverage covers third-party and own damages (OD). So, in case of an accident, this coverage will pay for your as well as third party’s damages, injuries, and losses. It will also protect your car against natural calamities, fire, and theft.

  5. Personal Injury Coverage:
  6. If you don’t want to purchase comprehensive coverage, some of the insurers also offer personal injury coverage which you can purchase with the mandatory third-party cover. With this coverage, even you and your passengers will be protected against injuries.

  7. Collision Coverage:
  8. Another option that you can consider with your third-party coverage is collision coverage. Just like as personal injury cover protects you against your own injuries, collision coverage protects your car against damages it suffers from in an accident.

  9. Uninsured Motorist Protection:
  10. If another vehicle hits your car and its driver does not have valid insurance, you will have to rely on your third-party coverage to repair the damages. Uninsured motorist protection can be purchased for such scenarios to increase the maximum coverage amount.

  11. Zero Depreciation Coverage:
  12. The insurer considers depreciation for calculating the payable amount in case if your car was involved in an accident. With the zero depreciation coverage, the 'depreciation' factor will not be considered by your insurer while calculating the payable amount.

  13. Return to Invoice (RTI) Coverage:
  14. There can be a considerable difference in the actual cost at which you purchased your car and its current IDV (Insured Declared Value). If your car is totalled or lost, the insurer will only pay the current IDV. With Return to Invoice coverage, you will be reimbursed for the original cost of your vehicle.

Selecting the Right Car Insurance Coverage

Most car owners, especially ones who are purchasing car insurance for the first time, find it challenging to pick the best insurance coverage. To make the right decision, you should first understand all the options in detail and then go with one that best suits your budget and requirements.

You can always get in touch with a reputed insurer to help you make the right decision.

Click here to apply for a motor insurance.

DISCLAIMER

The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.



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