Car Insurance refers to an agreement between an insurer and the vehicle owner. The owner or insured pays a fixed premium. The insurer pays for damages or loss of the vehicle. Buying such Insurance is mandatory in India under the Motor Vehicles Act. You can choose from two major types of Car Insurance online for your new or existing vehicle. Here is what you need to know about them and their benefits:

Third-Party Insurance Policy

Third-Party Car Insurance is a mandatory requirement for vehicle owners. It provides basic Insurance coverage. It protects against losses or damage caused to a third-party car or property. It also compensates for any injuries the third party might suffer in an accident involving your vehicle. The benefits of such a policy are:

• Suppose the third party takes legal action due to the damage caused to them or their property. Now, the Insurance company covers the expenses of legal proceedings and advocate fees.
• Such Insurance has a low premium amount. A Car Insurance calculator lets you quickly compute the exact premium amount based on your coverage needs.
• It provides compensation to the third party based on the court’s verdict.
• It fulfils the mandatory Insurance requirements for vehicles in India.
• It covers legal and financial liability for death or injury to a third party due to your car.

Comprehensive Car Insurance Policy

A Comprehensive Car Policy provides complete protection. It covers third-party liabilities and pays for the damage suffered by your car. The premium for the Insurance is higher than Third-Party Car Insurance. However, the coverage is broader. Here are the notable benefits of this policy:

• It covers physical damage, loss of life, and the loss of belongings of a third party.
• It covers the damage from human-made disasters like fire, theft, etc.
• It compensates for the damage due to internal issues like self-ignition.
• It covers the damage because by natural calamities, such as floods, earthquakes, etc.
• It compensates for the damage caused during transit through rail, road, elevators, etc.
• You can easily buy and renew it online. Contact your insurer’s customer support for proper guidance if you feel lost.
• Some insurers offer Personal Accident Cover for the vehicle owner. However, you should have a valid driving license.
• Some Insurance companies also let you choose from various add-ons like No Claim Bonus protection for your vehicle. You enjoy this perk at a nominal cost. Add these to your Comprehensive Car Policy to make it more appealing.
• You can choose from other add-ons, like depreciation compensation, coverage for key replacement, and coverage for loss of belongings.

Conclusion

Choosing the right Car Insurance is crucial as it ensures adequate coverage for potential risks and emergencies. However, you should also know about the benefits of each type to enjoy the perks of such Insurance.