Based on the overall economy and average incomes of various states, owing and maintaining a car is an expensive affair. Thus, buying car insurance is an important step towards protecting your vehicle against any peril.
As per the Motor Vehicles Act, 1988, car insurance is mandatory in India. Therefore, it is also vital to spend some time while buying insurance. Before buying a policy one needs to compare car insurance offered by the various insurers and choose the best one as per their needs.
There are two primary types of car insurance policies, Third Party Car Insurance and Comprehensive Car Insurance.
You should analyze your needs and requirements and then buy a plan accordingly.
Let us understand the different kinds of insurance in detail.
1) Third Party Car Insurance Policy
The third party covers losses caused due to an accident by the insured’s car. It also includes the bodily injuries or death caused to the third party or any damages caused to the third party property involved in an accident if the insured is at fault. Therefore, third party liability insurance policy provides protection against legal liability to a third party. However, it does not cover you or your car against damage caused by an accident or any medical help.
2) Comprehensive Car Insurance
The comprehensive car insurance policy provides coverage against third-party incidents along with the loss suffered by you or your car during an accident.
Following are the benefits of this policy:
– It provides total coverage for your car along with third-party losses
– It covers the damage caused to own vehicle and third-party vehicle
– The driver of an insured vehicle, third-party vehicle and any passengers involved in the accident receive medical coverage under this policy
– This policy also provides cover against natural calamities like cyclone, fire, earthquake, flood, etc.
– Losses or damages due to theft, burglary, riots, etc. are also covered
The comprehensive policy provides reparation costs for your car after an accident. Thus, you can rest assured as the expenses are covered under the comprehensive policy. However, a comprehensive policy, due to more inclusions and greater coverage, has a higher premium cost as compared to third-party insurance, but it is totally worth it. This policy helps you to avoid paying damages from your own pocket. Always make it a point to ask your company to alert you for car insurance renewal when your policy tenure is close to its expiry.
What is the best option?
For an old car, third-party liability policy might be suitable as the premium cost is low. Due to the depreciation of the car, the IDV of the old car is comparatively less. Thus, it is not worth to pay a higher premium for an old vehicle with low overall value. Also, you can afford to pay for minor expenses from your pocket.
A new car has high IDV, thus it is vital to buy a comprehensive cover to protect your car against any unforeseen events.
The final decision totally depends on you based on your needs and budget. Thus, a comprehensive car insurance policy can keep you safe and financially secure.
You can buy comprehensive or third party car insurance online in a few, simple steps.
