Here Are The Different Types Of Car insurance Available In India

Car insurance is a must-have for every car owner in India. It not only protects you from financial losses in case of accidents, but it is also mandatory by law. However, with so many types of car insurance available in India, it can be overwhelming to choose the right one for your vehicle. In this article, we will discuss the different types of car insurance available in India and help you understand which one is best for you.

Types of Car Insurance

Third-party car insurance

Third-party car insurance is the most basic and mandatory type of car insurance in India. It covers the damages caused to a third party in the event of an accident involving your car. This includes bodily injury, death, or property damage. It does not cover any damage to your own vehicle. Third-party car insurance is the minimum requirement by law and is usually the cheapest option.

Comprehensive car insurance

Comprehensive car insurance provides coverage for both third-party damages and damages to your own vehicle. It covers damages caused by accidents, natural disasters, theft, and vandalism. It also includes personal accident cover for the owner-driver. While it is not mandatory by law, it is highly recommended as it provides extensive coverage.

Zero-Depreciation Car Insurance

Car insurance with zero depreciation, often referred to as bumper-to-bumper insurance, is an extra coverage that can be acquired alongside a comprehensive car insurance plan. It provides complete coverage for your car without factoring in depreciation. Hence, in the event of a mishap, the insurance firm will fully cover the repair or replacement expenses without deducting any depreciated value.

Third-Party, Fire, and Theft Car Insurance

This type of car insurance provides coverage for damages caused to a third party as well as damages caused by fire or theft to your own vehicle. It is a good option for those who want more coverage than just third-party insurance but do not want to pay for a comprehensive policy.

Usage-Based Car Insurance

Usage-based car insurance, also known as pay-as-you-drive insurance, is a relatively new concept in India. It involves installing a telematics device in your car that tracks your driving behavior and calculates your insurance premium accordingly. This type of insurance is ideal for those who do not drive frequently and want to save on their insurance costs.

Personal Accident Cover

Personal accident cover is an add-on cover that can be purchased with any type of car insurance policy. It provides coverage for the owner-driver in case of accidental death or permanent disability due to a car accident. This cover is highly recommended as it provides financial security for the owner-driver and their family.

Which type of car insurance is best?

The best type of car insurance for you depends on your individual needs and budget. If you are looking for the minimum coverage required by law, then third-party car insurance is the best option. However, if you want extensive coverage for your own vehicle, then a comprehensive policy with add-ons like zero depreciation and personal accident cover would be the best choice.

How Many Types of Car Insurance Are There in India?

There are four main types of car insurance in India: third-party car insurance, comprehensive car insurance, third-party, fire, and theft car insurance, and usage-based car insurance. However, there are also various add-on covers that can be purchased with these policies to enhance the coverage.

Types of Vehicle Insurance

Apart from car insurance, there are also other types of vehicle insurance available in India. These include:

Two-Wheeler Insurance

Two-wheeler insurance is similar to car insurance, but it is specifically designed for two-wheelers like bikes and scooters. It provides coverage for damages caused to a third party as well as damages to your own vehicle.

Commercial vehicle insurance

Commercial vehicle insurance is mandatory for all commercial vehicles in India. It provides coverage for damages caused to a third party as well as damages to the insured vehicle. It also includes personal accident cover for the driver and co-passengers.

Third-party liability insurance

Third-party liability insurance is a type of insurance that provides coverage for damages caused to a third party by any type of vehicle. It is mandatory for all vehicles in India and is usually included in comprehensive car insurance policies.

Car Insurance Coverage Types

Car insurance coverage can be broadly classified into two types: liability coverage and physical damage coverage.

Liability Coverage

Liability coverage includes third-party car insurance, third-party fire and theft car insurance, and third-party liability insurance. It provides coverage for damages caused to a third party by your vehicle.

Physical Damage Coverage

Physical damage coverage includes comprehensive car insurance, zero-depreciation car insurance, and usage-based car insurance. It provides coverage for damages to your own vehicle caused by accidents, natural disasters, theft, and vandalism.

Types of Car Insurance in India

In India, the most common types of car insurance are third-party car insurance and comprehensive car insurance. However, with the rise of usage-based car insurance and add-on covers, there are now more options available for car owners to choose from.

Conclusion

Choosing the right type of car insurance is crucial for protecting your vehicle and yourself from financial losses. While third-party car insurance is the minimum requirement by law, it is always recommended to opt for a comprehensive policy with add-ons for better coverage. Consider your individual needs and budget before selecting the type of car insurance that is best for you. With the right insurance, you can drive with peace of mind, knowing that you are protected in case of any unforeseen events.

Also Read: Are Zero-Depreciation Car Insurance Policies Worth It?

Frequently Asked Questions

How many types of insurance are there for a car?

There are 5 types of car insurance available in India:

• Comprehensive car insurance
• Third-party car insurance
• Own Damage car insurance
• Zero Depreciation car insurance
• Personal accident cover

How to shop for a car insurance plan online?

You can easily buy a car insurance plan on Coverfox in simple steps. Just go to the Car Insurance page on Coverfox, fill in the necessary details of your car, choose a plan and get the policy emailed to you in no time.

Is it necessary to have a car insurance policy?

As per Motor Vehicles Act of India, it is compulsory for car owners and drivers to have at least third-party car insurance while driving their vehicle. However, you may choose from the types of car insurance plans that best suit your needs.