Car insurance coverage is required according to the Motor Vehicles Act of 1988 in India. As a result, you must obtain at least third-party car insurance coverage to lawfully drive your car in India. Furthermore, in the event of an accident, the coverage will provide financial help in the event of third-party property damage caused by your vehicle. If a person is injured or dies as a result of the automobile, you might be held liable for a significant financial loss. This responsibility is also covered by the policy, which provides you with financial comfort. Furthermore, choosing comprehensive car insurance policy coverage can assist in covering the damage to your car in the event of an accident or theft.
Car insurance plans are also divided into different types of insurance. They are as follows:
1. Third-party liability - This is the minimum needed under the Motor Vehicles Act of 1988. This insurance protects you from third-party legal responsibilities. It provides the appropriate compensation for any third-party death, injury, or property damage.
2. Comprehensive cover - This policy covers both statutory third-party responsibility and damage to your own vehicle caused by natural or man-made causes.
3. Pay-as-you-drive - This is a flexible policy in which coverage may be turned on and off based on how you use the automobile. When you use your automobile, you may toggle the coverage on and off. This significantly reduces the premium cost that would otherwise be payable for an insurance policy. continuous coverage. Premiums for these plans are computed based on the number of kilometers you claim you will travel in a year.
4. Long term liability cover - This insurance provides third-party liability coverage for a period of 3 years. The policy is only available for new automobiles that are required by IRDAI to have long-term third-party coverage.
5. Standalone own damage cover - This coverage solely covers the damage to your automobile. Third-party liability coverage is not permitted. A solo auto insurance policy can be obtained if you already have third-party liability insurance, or you can buy both at the same time. Assume you buy a new automobile. You would need to purchase long-term liability insurance on the vehicle. If you want to be covered for your own damages as well, you may get a separate personal damage policy from the same or another insurer.
6. Bundled plan - A bundled policy is offered for new cars. This insurance provides third-party liability coverage for three years and own damage coverage for one year.
