Types of Car/Vehicle Insurance Policies in India (2023)

Nothing sounds better to the ear than the hum of the engine when your new car or motorcycle starts up. In a country where owning a car or bicycle is more of a status symbol than a means of transportation, it's no surprise that these vehicles hold enormous sentimental value in the eyes of their owners. The slightest scratch on a side panel or minor damage on a new motorcycle is enough to annoy and annoy the owner. This is the power a car has over its owner!

If that's the case, it makes sense to protect your valuable vehicle from accidental and other damage. Also, the cost of repairing a vehicle can take a significant toll on your wallet, as replacement parts are hard to come by and therefore expensive. For this reasonCar insuranceIt's essential: auto insurance protects you against financial damage associated with your vehicle in the event of an accident.

What is car insurance?

Car insurance is similar to other types of insurance, but unlike other types of insurance, it has "priority"! And as its name suggests, it is insurance for all types of motor vehicles: motorcycles, cars, jeeps, commercial vehicles, etc.

The government has made auto insurance a priority for your safety and the safety of others. And the annual premium you pay is a pittance compared to the benefits it provides in the event of, God forbid, an accident.

So first, let's look at the different types of auto insurance and generally what they cover! There are two types of car insurance.

• The type of vehicle you have insurance for
• The amount of coverage you want to provide for your vehicle.

So what are the different types of vehicle insurance in India based on the type of vehicle owned?

Types of car insurance in India

1. Private car insurance

This is a car insurance policy required by the Indian government for every private car owned by an individual.private car insuranceprotects the vehicle from damage caused by accidents, fire, natural disasters, and theft, as well as the owner from personal injury. It also protects the third party from harm or injury.

2. Bicycle Insurance Policy

The Indian government-mandated two-wheeler insurance covers two-wheelers like scooters and bicycles. The two-wheeled vehicle is insured against damage caused by accidents, claims, fire, theft, etc., as well as against damages to third parties. It also includes mandatory accident insurance for the owner and can be added for passengers.

3. Commercial vehicle insurance

commercial vehicle insuranceThe policy insures all vehicles that are not for private use. This type of insurance protects all commercial vehicles. The vehicles covered by this insurance include trucks, buses, heavy vehicles, light vehicles, minivans, agricultural vehicles, taxis, ambulances, rickshaws, etc.

Types of car insurance policies in India

1. All-risk insurance

Car owners in India can choose from a variety of car insurance options. The main purpose is to protect car owners from damage and accidents.

Automobile insurance policies are based on coverage related to the type of insurance plan chosen, which can be classified as follows:

• Comprehensive insurance
• liability insurance

comprehensive insurance coverage

Comprehensive insurance, as its name suggests, covers every conceivable aspect of the insured vehicle and the interests of the insured. However, it is preferable to be aware of the different aspects that these insurance plans cover.Comprehensive insurance protectiona variety of different aspects including fire, bad weather and natural disasters causing damage, damage caused by third parties or animals, damage to vehicles caused by civil unrest such as riots or theft and vandalism.

Complemented with comprehensive car insurance

Below are some of the add-ons for choosing comprehensive auto insurance in India:

zero depreciation

This is common supplemental insurance, also known as bumper-to-bumper insurance. This additional coverage is available for all vehicle segments. TOZero Depreciation CoverageIt is of great importance in claim settlement or reimbursement calculations. When auto insurers pay the claim amount or refund your bill payments, they typically deduct the car's depreciation amount from that date. As a result, no insurer will offer to pay the full amount of the claim. However, if you have such coverage, the depreciation factor will not be included in the claims settlement calculation. This optional coverage is ideal for vehicles less than 5 years old.

engine protection cover

The suitability of an engine is crucial as it is an essential component of the vehicle. Unfortunately, comprehensive insurance does not cover non-accidental engine damage. Are hereAdditional engine protectioncomes and economically protects the engine from all damage. This supplement exempts the insured from all expenses related to the engine, such as oil spills, floods, electrical or mechanical breakdowns and complete replacement of car engine parts.

roadside assistance

If your car breaks down while driving, whether in town or on the highway, you need immediate help. If you live in a remote area where finding a mechanic is difficult,Supplemental roadside assistance coverageit can be very useful. All you have to do is contact the insurer and let them know the situation. If the engine fails, the insurance company will organize a towing service or a workshop service through its network of workshops. Few insurers include this as part of the basic insurance; If not, you can buy it as an add-on.

consumables coverage

Oadditional consumable capsConsumables such as grease, air conditioning gas, lubrication clips, bearings, fuel filter, engine oil, oil filter, brake oil, nuts and bolts, screws, washers, etc. they are not covered by the standard policy.

Back to Bill Coverage

CanPurchase invoice return coverageafter the end of the first year of insurance. If the car is completely damaged in an accident or is beyond repair as a result of an accident, the insurer will pay the full value of the vehicle without taking into account the percentage of degradation.

tire protection cover

Tire Protection Supplementcovers damage such as tire dents, punctures or blowouts, cuts in a tire due to an accident, etc.

liability insurance

car liability insuranceIt is required by law for all vehicle owners in India. Essentially, these insurance policies protect the interests of the insured against damage that the insured causes to property or to a person.

In a variety of situations, liability insurance can be said to help reduce risk and liability for the policyholder. This coverage is also recommended for older, low-cost vehicles that are less expensive to repair.

Auto Liability Insurance Coverage

Financial and legal support:

If you have liability insurance for your car, then you don't have to worry about legal issues that may arise as a result of an accident. Remember that civil liability insurance covers you in the event of an accident. If you have valid liability insurance, you will not be subject to any of these courts. In addition, this policy covers the costs related to the recovery of damages from third parties.

accessibility:

Whoever thinks that civil liability insurance is expensive is wrong. You see, insurance premiums are specially tailored to the needs of all vehicle owners. The premium to pay depends on the model and displacement of your vehicle. Liability insurance has lower premiums than comprehensive vehicle insurance.

Online purchase procedure:

You do not need to go to the official premises of an insurance company to obtain liability insurance for your car, as the insurance plans can be found online. Insurance companies have dedicated web-based insurance portals to ensure vehicle owners have suitable plans. You can simply log in, explore the insurance plans, and choose the one that best suits your needs.

This is how liability insurance coverage works

The first step in understanding how liability insurance works is to make a list of the terms used. Some of the terms commonly associated with third party coverage are:

First party:

The policyholder or the person who purchased the insurance policy.

Second party:

insurer or insurer

Third:

The natural or legal person who claims compensation for damages caused by the first party.

If the policyholder is involved in an accident involving a third party, the policyholder is responsible for any damage or injury suffered. If an accident occurs, the policyholder must notify the insurer as soon as possible and describe the circumstances. Based on the article above, you have several options when it comes to auto insurance, so sign up with the insurance company.auto insurance companyas early as possible.

Also read: Does your car insurance cover vandalism?

frequent questions

What is car insurance?

Car insurance is mandatory for all types of vehicles: cars, bicycles, commercial vehicles, jeeps, etc.

What types of vehicle insurance are there in India?

There are three types of car insurance in India: car insurance, bicycle or two-wheeler insurance, and commercial vehicle insurance.