Car Insurance is an agreement between the insurance company and the car owner wherein, the car owner will pay premiums and the insurance company covers for loss or damage caused to the car. Car Insurance is mandatory in India regardless of whether it is a commercial vehicle or a personal vehicle. Most of the insurance companies in India have tie-ups with car manufacturers and they offer car owners instant quotes.
Type of Car Insurance
In India, two types of car insurance plans are offered:
1. Third-Party Insurance
Third-party insurance is a basic vehicle insurance As per applicable terms and conditions, it covers bodily injuries / damage(s) or losses caused to any third-party vehicle/property by the insured vehicle.
2. Comprehensive Insurance
True to its name, the comprehensive vehicle insurance policy provides enhanced insurance coverage. It covers third-party liability as well as own damage to the insured vehicle.
Benefits of Vehicle Insurance
- Car insurance provides benefit in case of death arising out of accidents
- Covers the repair cost of vehicle repairs due to damage caused in an accident
- Covers damage caused by other than an accident for example, theft, fire, etc
- Offers cover for damage caused to third party
Car insurance is a very efficient tool that will protect your dream car against damages and mitigate your costs in case of an accident. There is no dearth of options for car insurance schemes on the market. It is always advisable to compare between different plans and choose the one suitable for you best.