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All You Need to Know About Car Insurance

Written by Saad Ahmad
Updated On Oct 18, 20232 min read

All You Need to Know About Car Insurance


Car insurance is also known as Auto insurance, Vehicle insurance and Motor insurance. Car insurance is understood as a contract between you and an insurance company where you agreed to pay premiums in return in exchange for protection of financial losses, such as accidents or damages occured. It is applicable to cars, two-wheelers, commercial vehicles etc. 

Whenever you are buying a car it is important to make an investment in the form of insurance. Insurance gives you reassurance in case of damage or accidents of the car or if the car is stolen. 

You have to pay the premiums either monthly, or annually to maintain the insurance policy of your car. 

All You Need to Know About Car Insurance

Types of Car Insurance 

Coverage of Insurance refers to the types of protection available to the cars. Along with the basic coverage that is already included in the insurance, you can select add ons to enhance your car protection. Let us know and try to read about the types of insurance that are available to us. 

1. Third-Party Liability Only Cover

Under this insurance you will get the cost for repairing and replacement of the damaged vehicles of the third party, liabilities arising out of the death of the third party, cost of the hospitalization of the third party.

2. Collision Damage or Own Damage (OD) Cover

Opting for Collision damage car insurance, the cost for the repairing of the vehicle is repaid but after examining the age and insured declared value of the insurance. The Insured Declared Value is basically based on the market value of the vehicle at that time.

3. Personal Accident Cover

When you are wishing for reimbursement for your medical expense that is caused due to an accident, that time you have to take the help of the Personal Accident Cover insurance. 

4. Zero Depreciation Car Insurance

This coverage  helps with add ons to car insurance. When you want to replace the damaged parts of your vehicle, this insurance will help you get the claim amount for the replacement. 

5. Comprehensive Car Insurance

This coverage gives the ultimate protection as it includes all the coverages here, including third party liability cover, non collision damage, personal accidents, damage to own vehicles. If you further need more you can even add to Comprehensive Car Insurance.

6. Expiry and Fine

Your insurance is there for a specific time period, after that particular period it expires, so you need to renew your car insurance. It mostly has a policy of one or more years then the holder needs to renew before the expiry date. If you don't renew your insurance then the car is at your own risk and even you have to pay a fine for it. You will not get any kind of compensation that you used to get during your insurance policy period. And unfortunately, if you are caught without car insurance you will have to pay a fine of $100 to $1,500. 


We got to know that Car Insurance is designed to help and protect us from the huge financial losses that are caused due to the damage or accident of the vehicle. But the very important thing that one has to keep in mind before investing into insurance is that we have to shop the best car insurance rates to ensure the coverage that will be right for our vehicle at the correct price. 

Also read: What Kinds Of Questions Do Vehicle Insurance Companies Ask And Why?

In India, Why And How Is A Car Insurance Background Check Performed?


This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.
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Written by Saad Ahmad
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 Saad is a marketing guru and has some exciting knowledge to share about the motor and related industry. Saad in his last work with a major Indian yet global conglomerate has made direct contributions to the Insurance sector. In his free time, Saad likes to play badminton and listen to melancholic music

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