If you are planning to buy a car for yourself then car insurance is one of the most important parts of this purchase. This ensures many benefits including law enforcement and peace of mind while driving.
Car insurance is not only mandatory under the law of the country. Rather, it also provides financial protection against unexpected expenses arising from accidents, theft or extensive damage to the vehicle. There is a wide range of car insurance policies available in the Indian market. However, the most common car insurance available in India is third-party and own damage.
To understand what kind of car insurance you should purchase for your personal car, it is important to understand how insurance coverage works. This will not only help you in taking informed decisions but will also significantly increase the safety of your vehicle.
Third-party insurance
Third-party insurance is mandatory in India under the Motor Vehicles Act 1988. If you are planning to buy a car then it is mandatory for you to buy this insurance policy. Third-party insurance provides coverage for any bodily injury or death caused by a third-party vehicle, damage to property or an accident involving your car. However, third-party insurance does not provide any coverage for damage caused to your vehicle or any physical harm you suffer due to an accident involving your car.
Self damage insurance
Self-damage insurance policies are not mandated by law. But it is important to ensure that any damage caused to your vehicle due to any accident on the road will be covered. It also ensures coverage for bodily injuries or death caused by an accident involving your vehicle.
Comprehensive Insurance
Comprehensive insurance is one of the most popular car insurance policies that vehicle owners choose. This type of insurance policy provides comprehensive coverage for both third party liability and damage caused to your own car. A comprehensive insurance policy protects the vehicle owner against losses caused by theft, fire, natural disasters, accidents and other unexpected events. While comprehensive insurance is not mandatory for vehicle owners by law. But it is still highly advisable to opt for comprehensive insurance coverage, which will ensure peace of mind.
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