Types Of Car Insurance

Posted on Feb, 2020
What Are The Different Types Of Car Insurance?
Insuring your vehicle is mandatory in India. Whether you own a two-wheeler, a four-wheeler or a multi-axle vehicle, you must invest in a good vehicle insurance policy as driving without a valid insurance policy is considered a punishable offence. If you own a car, it is recommended to compare the different insurance providers and invest in a policy that best suits your requirements. Here’s a look at the different types of car insurance policies you can purchase in India.

1. Limited Liability Insurance policy

The limited liability insurance policy is an insurance policy that’s also referred to as the third-party insurance policy. As per the Motor Vehicle Act of 1988, this insurance policy is designed to provide coverage in case of car accidents involving a third-party individual and their car/property. This covers the cost of repair or replacement of vehicle parts if a third party’s vehicle is damaged in an accident. As the name suggests, this policy comes with limited coverage in that it only includes the third party injured in the accident and not the policyholder per se.

2. Comprehensive Coverage Insurance Policies

Perhaps the most popular type of motor insurance coverage is the comprehensive coverage insurance policy. This is an all-round policy, which covers both, the policyholder and the third party in case of an accident leading to hospitalisation and/or vehicle/property damage. Apart from accidents and vehicle damage, it is also equipped to cover you against loss or damage of vehicle due to natural disasters like earthquakes, floods, tornadoes, fire, storms, etc., as well as human incidents like riots, strikes, terror activities, thefts, etc. Moreover, you can make your coverage even more comprehensive by adding the necessary add-on riders provided by your insurance company.

Conclusion: As per the Motor Vehicle Act of 1988, it is mandatory to have a limited liability car insurance. However, it is recommended to go for a comprehensive policy that covers the liability as well as the damage to your vehicle. The insurance premium you pay depends upon the type of car insurance you purchase. To maximise coverage, it is best to opt for a comprehensive policy featuring necessary add-on riders. Explore affordable car insurance quotes on PINC Insurance. Being a composite broker, PINC provides a wide range of insurance policies, suitable for every budget. At PINC, we take pride in our impeccable customer service facilities. You can reach out on our customer service helpline for assistance.