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Find More About The Many Types Of Car Insurance Policies Available In India.

Published On Mar 29, 2022 10:00 AM By InsuranceDekho

Let's look at the many sorts of automobile insurance policies available in India.

Different Types of Car Insurance - Car insurance is a tool that protects you against financial losses that may arise as a result of an accident or other unforeseen incident involving your vehicle. It is critical to get a basic automobile insurance policy since it is required by the Indian Motor Tariff.

However, before choosing a vehicle insurance policy, you should familiarise yourself with the various types of car insurance plans on the market. You may simply choose an appropriate policy depending on your budget and requirements after you have a good grasp of the various insurance plans.

Find More About The Many Types Of Car Insurance Policies Available In India.

What Are the Different Types of Automobile Insurance?

There are three different forms of automobile insurance:

Car Insurance for Third Parties

Liability-only coverage is sometimes known as third-party insurance. This is a basic insurance policy that is required in India to avoid legal ramifications. This coverage protects you against any financial obligations you may have to a third party as a result of an accident involving your vehicle. This policy's coverage includes:

  • Property harm caused by a third party - Damages sustained by a third-party person's property. The amount of compensation is capped at Rs. 7.5 lakh.
  • Expenses for treating injuries - Treatment costs for third-party injuries, including bodily injuries and temporary and permanent disability.
  • Compensation for loss of life -  If the third party individual dies, his or her family gets compensated.

Own-Damage Insurance on Its Own

The standalone own-damage auto insurance policy is designed to cover solely your car's damage or loss in the event of an accident or other unforeseen event such as theft, fire, or natural disaster. This coverage compensates you for your car's own-damage losses in the following scenarios:


  • Damages Caused by Mistakes - In the event of a traffic accident, the cost of repairing the damages to your automobile is covered.
  • Explosion or Fire - In the event of a total loss due to fire or explosion, you will be reimbursed according to the Insured Declared Value (IDV) of your vehicle.
  • Total Loss As A Result Of Theft - If your automobile is stolen, your insurance will pay the whole loss by giving you the IDV.
  • Natural Disasters - Compensation for damages to your vehicle caused by natural disasters such as floods, earthquakes, hurricanes, typhoons, hailstorms, lightning, or landslides.
  • Man-Made Disasters - Own damage is caused by man-made calamities such as robbery, air attacks, vandalism, riots, or terrorism.

Car Insurance with Full Coverage

Many insurance companies refer to comprehensive insurance as a package plan. This plan includes both third-party and own-damage insurance coverage. This coverage includes the following items:

  • It covers all of the circumstances that are covered by standalone own damage insurance.
  • This plan also includes liability coverage for third-party claims incurred as a result of an accident involving your vehicle. It provides coverage for a third-party person's injury or death.
  • For third-party property damage, compensation of up to Rs 7.5 lakh is available.

Covers for Add-Ons

When you buy standalone personal damage or a comprehensive insurance policy, you also get access to add-on coverage. These add-on covers are optional and can be purchased for a little additional fee. You may expand the scope of your automobile insurance coverage by adding these policies to your comprehensive or independent own-damage plan. You may customize the add-ons to fit your budget and needs. Zero Depreciation, NCB Protection, Passengers' Accident Cover, Roadside Assistance, Return to Invoice, Engine Protection Cover, and many other options are available.

Take Away

Car insurance comes in a variety of forms, but you must choose one depending on your insurance needs and financial stability. To make an informed selection about a vehicle insurance plan, keep the various forms of car insurance in mind. We hope that the information provided above will assist you in locating a plan that meets your requirements.

Also read - What Is The Most Effective Method For Finding And Comparing Car Insurance On The Internet?

Disclaimer: 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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