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What Is Partial And Full Car Insurance Coverage?

Written by Sumit Arora
Updated On Oct 16, 20232 min read
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Choosing the right insurance plan can be a task. This article talks about two of the most common insurance plans, the partial and full car insurance coverage.

Did you know that India is the 4th largest passenger vehicle producer in the world? As of 2018-19, India has produced over 4.06 million cars and currently, there is an estimation of 300 million cars in India. Yet only 43% of vehicles in India are insured. As per the Motor Vehicles Act in India, it is important and mandatory that all vehicles that operate in any public space must have a motor vehicle insurance cover. 

Partial and full car insurance coverage is the most common insurance plan provided by companies all over India. With the increase in the number of cars and bad road conditions, cars are becoming more prone to accidents. Hence, the smartest move as a car owner is to insure your car from any future risks. Read below to learn more about partial and full car insurance coverage and how it is beneficial in the future.   

What Is Partial And Full Car Insurance Coverage?

What Is Partial And Full Car Insurance Coverage?

Insurance companies provide two major types of insurance plans. Partial and Full car insurance coverage. The Partial Car Insurance coverage has been made mandatory by the government of India under the Motor Vehicle Act of 1988 and is less expensive than that of the full car insurance coverage. Whereas the Full Insurance Car plan covers liability, collision and comprehension. Choosing the right insurance plan is Crucial. Therefore, here’s more information about the following insurance plans:

1. Partial Car Insurance Coverage 

The Partial Car Insurance Coverage is a mandatory and standard insurance plan. It is also known as third-party insurance as it financially protects you against any third-party damage, death, loss of property or bodily injury due to the third party. Hence, providing cover for any destruction caused to your own as well as a third party in an accident. This insurance plan is commonly known as liability insurance. 

When met with an accident, this insurance plan covers all the damage costs of the other party and not your own. Hence, this insurance plan is beneficial to those car owners who own an old car.  

Why Is It Also Known As Liability Insurance? 

The car liability insurance only covers damages and injuries caused to the third party and its property and not the driver and their property, although this might be separately covered by other parts of their policy The two components of liability car insurance are property and bodily damage.

2. Full Car Insurance Coverage

The Full Car Insurance Coverage is a Comprehensive Plan which gives coverage to all kinds of damages whether it is of third-party or own. This plan also covers damages caused by natural calamities and theft. If no claims have been raised over a year, one can claim a bonus for the same during the renewal period. Unlike the partial car insurance coverage, this plan offers you to add on different riders for better coverage and can customize your insured declared value in this plan.

This insurance plan is recommended to those car owners who have newly bought a car as it only covers damages for own and third-party costs but also comes with added benefits and bonuses. 

Why Is It Also Known As Comprehensive Car Insurance Coverage? 

The Comprehensive Car Insurance Coverage means that if one's car is involved in an accident resulting in serious damages and loss of property, both the parties (owner and third party) are covered under the full car insurance plan. You are also protected against any legal actions in case of death or bodily harm caused to the third party under this plan. 

Conclusion 

Car insurance is very significant and helps you stay insured from all possible disasters such as natural calamities, damage and loss of property due to accidents and also protects you against possible legal actions.

Also Read: 

How To Lower Premium of Your Car Insurance?

Top Factors That Determine The Premium of Your Car Insurance Plan

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.

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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Written by Sumit Arora
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 Sumit is an insurance industry veteran with more than 20 years in the industry. Sumit is a frequent columnist and speaker at major insurer conventions and is a heard name in insurance circles In his free time, Sumit likes to spend time with his family and go on trips

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