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Different types of car insurance policies in India

When someone buys a new car, it’s crucial to understand the concept of car insurance coverage. Even if a driver takes all the essential safety measures, an accident, mechanical failure, or other unanticipated circumstance could still happen to the vehicle. In the event of such an incident, a car insurance coverage can assist in preventing the owner from suffering financial damages.

Car insurance policies come in a wide variety of forms, each with a unique selection of coverage possibilities. It’s critical to select an insurance that fits the car owner’s unique requirements and budgetary limitations.

Here are the different types of car insurance coverage in India:

Third-party liability only cover: Third-party liability insurance is a type of car insurance that covers the insured against legal liability arising from loss or damage to the property or person of a third party caused by the insured. This type of insurance covers the following: cost of repairs or replacement of the damaged vehicle of third parties, cost of hospitalisation and treatment of third parties, liabilities arising out of the death of third parties.

Third-party liability insurance is mandatory in India under the Motor Vehicles Act. The sum assured on the insurance should be high enough to prevent the car owner from having to pay out-of-pocket in the event of an accident.

Collision damage or own damage (OD) cover: When a car is damaged in an accident, collision damage car insurance coverage pays the owner for the cost of recovering the vehicle. The age of the vehicle and its insured declared value (IDV) affect the cost of the policy. The IDV is based on the car’s market value.

The maximum amount that the car owner can be paid under a collision damage coverage policy is the IDV less accumulated depreciation. Accumulated depreciation is the amount of wear and tear that the car has experienced since the time it was first bought. If a car owner buys a car on a loan, then he/she/they should have collision damage coverage. This is because the lender will require the owner of the car to have this type of coverage to protect their interest in the car.

Personal accident cover: In the event of an accident, the owner-driver of the vehicle is protected by a personal accident car insurance policy. It provides coverage for death, medical costs, and permanent disability. People who frequently travel for work should have this kind of insurance because they are more likely to be in an accident.

A car owner should think about getting a personal accident car insurance policy if they frequently travel for work. In the event of an accident, this kind of insurance might offer the owner financial protection.

Zero depreciation insurance:

In India, car insurance policies can be upgraded to provide zero depreciation coverage. It enables the owner to get the full claim amount without taking depreciation into consideration. This indicates that the owner won’t be responsible for covering the depreciation of the components that require replacement.

Except for tires, tubes, and batteries, all components of an automobile are eligible for zero depreciation coverage. 50% of these components are covered.Typically, during the course of the insurance, insurers permit 2 zero depreciation claims. Some insurers, however, permit an infinite number of claims.

Comprehensive car insurance:

It offers the most complete car insurance policy, as the name would imply. It covers a variety of hazards, like as harm to third parties or their property, harm to the owner’s car, injuries to people, and non-collision damage from things like storms, floods, fire, and theft. For the purpose of improving the policy even more, the customer can add additional coverage choices.

Financial protection from a variety of dangers, such as harm to the vehicle, injuries to the driver and passengers, and damage to other people’s cars and property is provided by comprehensive auto insurance. It provides substantial coverage, including defense against third-party liability as well as any losses or harm done to the owner or the vehicle.

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