Car insurance is a legal contract between the insurer and the insured that makes the insurer liable to cover any damages that occur to your car in case of an accident.
A car insurance policy is bought to provide cover in case any damage is caused to your car due to an accident, theft, or a natural calamity when you purchase an own damage cover.
Private car insurance also gives you protection against any financial losses that may arise due to damages or bodily injury caused to the third party in case of an accident.
This insurance is the best solution to ensure that the financial liability that may arise due to an accident or a calamity involving your car is covered.
Types of Car insurance in India There are three types of private car insurance that you can buy in India. The types of insurance available include:
Comprehensive Car insurance Plan A comprehensive private car insurance plan provides coverage to the rider against own damages in addition to the third-party liability.
The plan protects you from damages caused due to manmade disasters, natural disasters, theft, accident, calamities, and other similar occurrences. It also gives you a personal accident cover in case you incur injuries while you are driving on the roads in India.
Third-Party Car insurance Plan As the name states, a third-party private car insurance plan protects you from any legal obligations that may arise if you cause damage or injury to the third party. The third party may be a vehicle or/and a person.
This plan covers you against any liabilities that arise if you damage the vehicle or property of a third party. It also covers the liabilities that arise due to injuries caused to a third party in an accident.
Any vehicle driving on the roads in India needs to have a valid third-party private car insurance plan. Those who do not adhere to this might face fines. Own Damage Car insurance You can buy a standalone own damage cover without buying a comprehensive Car insurance policy.
An own damage cover specifically covers the damages and losses caused to your own vehicle Note: Own Damage cover is applicable only if you have a third part insurance plan in place.
The coverage offered by third-party insurance is very cost-effective and the premium rates in Third-party are low. Every year, IRDAI defines the price of the product.