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The Different Types Of Car Insurance Coverage Explained

When purchasing auto insurance, it’s crucial to comprehend the concept of coverage so that you can make a well-informed choice for purchase. You travel by car to work, to complete duties and have fun with your family, or to spend time with friends. As a responsible automobile owner, you maintain the condition of your vehicle, drive safely, and follow all traffic laws. So, you want to be able to drive without worrying. Despite your efforts, your car may encounter unforeseen roadside situations, such as big or minor collisions, mechanical failures, tyre blowouts, natural or man-made calamities, and so on.

Car insurance online is the finest option to relieve your financial concerns in such circumstances.

What are India’s Five Types of Automobile Insurance Coverage?

In terms of protection, insurance coverage describes the different options. You can pick from a variety of add-ons to strengthen the protection provided by the policies in addition to the standard coverage under the policy. Let me first demonstrate the five different types of auto insurance coverage offered in India:

  1. Third-party liability only cover

You will receive the following advantages when you buy third-party car insurance:

  • Cost of replacing or repairing a damaged car owned by a third party
  • Hospitalisation and medical care for others’ expenses
  • Liabilities caused by third-party passing away

The Motor Vehicles Act states that having third-party auto insurance is a requirement for operating a vehicle on public highways. According to the driving conditions, the sum promised should be big enough to prevent out-of-pocket expenses on your part.

  1. Collision Damage or Own Damage (OD) Cover

The expense of repairing your damaged car is covered if you choose collision damage auto insurance coverage. The age of the vehicle and the insured declared value are factors in calculating the cost of collision coverage. The IDV is based on the vehicle’s market value. *

The maximum amount reimbursed under the collision coverage policy is determined by the IDV, less accrued depreciation when a claim is made. You should obtain collision coverage if you borrowed money to buy your car. *

  1. Personal accident cover

You are employing personal accident vehicle insurance coverage when you want to protect yourself, the owner-driver of the automobile, by choosing to be reimbursed for medical costs following an accident. *

  1. Zero depreciation insurance

In India, this coverage is typically offered as an add-on to car insurance online. Suppose you need to replace some parts because your car is damaged. The depreciated worth of the parts will be taken into account by the insurer when settling claims. You can collect the full claim amount with a Zero Depreciation Cover by not taking any cost depreciation into consideration. *

  1. Comprehensive car insurance:

As it covers liability for third parties, damage to one’s own vehicle, coverage for personal accidents, and all non-collision damage like storm, flood, fire, and theft, this form of coverage offers the maximum level of protection. With a variety of add-ons, you can further improve comprehensive auto insurance coverage.

* Standard T&C Apply

Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.


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