If you have a car, you must know by now that Car insurance is mandatory by law for all car owners. But lot of people dont understand nuances of car insurance well which leads to poor choices at times . Lets have a detailed look at Car insurance in India and different terminologies that you should understand , knows whats optional and what are best ways to get good protection for your cars.
What is Car Insurance : Simply put , Car insurance is a vehicle insurance that guarantees to cover any financial losses arising due to circustances such as car accident or car theft.
What are types of car insurance :
1)Third Party Insurance
2)Comprehensive cover
Third Party Insurance:
Third party insurance refers to insurance plan that covers any damage or injury caused by the insured person to any other property or person. A Third Party Liability cover is made mandatory in India under the Motor Vehicles Act of 1988 and is the bare minimum insurance that you must have if you want to drive on indian roads.
- Bodily Injury Liability—Bodily injury liability covers any costs associated with different injuries that the driver causes while driving car.
- Property Damage Liability—Property damage liability covers the costs assciated with any damage caused by the person driving the car to other vehicles or properties.
Comprehensive Insurance :
Comprehensive Insurance , unlike third party insurance , covers all the damages caused to your vehicle as well apart from others in case of any accidents . It also covers medical expensed for any injuries caused as well due to accident. It also covers loss or damage due to theft , burgalary , nautual calamities etc.
What is not covered in Car insurance ?
- General wear and tear due to ageing of the vehicle
- Damage caused by person driving without valid driving license
- Mechanical or Electrical Breakdown
- Damage caused to vehicle when driver is under influence of any intoxicating substance like alcohol or drugs.