Types of Car Insurance Coverage

Types of Car Insurance Coverage

Offer a car enthusiast the option to list out reasons for buying a car and they furnish a long and detailed one at that. Whether you want to drive from office to home or vice versa or like frequent trips, a car will help you do those with ease. Since you are investing substantially more amount of money when compared to a two wheeler, it is imperative that you take more precautions.

Speaking with an astrologer for picking the right color or date for the car doesn’t necessarily prevent it from incidents. Good care, safe driving and most importantly a car insurance is what will save from hefty bills in the longer run. A car insurance policy is in fact, one of the smartest ways of curbing your expenses when it comes to repairs.

Picture this, you are driving sedately and have slowed down at a traffic signal. A hurried biker comes and hits the rear end of your car. This is a pretty common occurrence in all of our lives. Irrespective of what you do, the damage has been done. There are two possible ways of handling the situation.

Firstly, you can pay for the repairs on your own. If it’s a minor incident, it will not bother you much since the repair costs will be minimal. But if it requires extensive repairs, you would be looking at a fat bill. The easier alternative is then to claim your car insurance policy. This way, you can repair the damages without paying anything from your pockets or minimal amount for that matter.

But one must be careful with the car insurance policy that they choose to buy. There are two primary options available in the market and both of them cater to completely different needs.

Third Party Liability in Car Insurance

Third party car insurance is the most vanilla form of car insurance policy that you can buy. In fact, as per the rules and regulations, it is the bare minimum policy that you must have to drive the car. The Motor Vehicles Act of 1988 mandates all vehicles to have at least the third party liability policy so that they can drive their vehicles legally on the road.

Thus, this policy type at least gives you the clearance of legal driving. As the name suggests, it covers for damages to third parties during an accident. If a policy holder meets with an accident, he/she is considered as the first party, the insurer as the second party and any other person or property involved is the third party.

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Any damages or injuries or death of third party individual or property is taken care of by the policy. It must be noted that since the coverage provided by a third party cover is very limited in nature, its premium prices are also low. In fact, the IRDAI recommends the price of the policy on a regular basis. Though the policy is just enough for you to drive, it doesn’t offer a lot of benefits and convenience.

Comprehensive Coverage in Car Insurance

A comprehensive car insurance, on the other hand, is a policy that will surpass your needs and then provide some more features and benefits. To start things off, it includes the third party liability policy by default and builds on the top of it. A comprehensive plan offers the following coverage.

  • Own Damage

If your car was to meet with an accident and you wished for your policy to look after the repair expenses, a comprehensive policy would do that for you. The premium that you pay for a comprehensive plan has a small component dedicated towards own damage.

  • Natural Calamity

In the unfortunate event that your car is at the receiving end of a natural calamity such as flood, cyclone, typhoon, landslide and so on, the policy kicks in. Your car insurance will cover all the expenses related to such repairs.

  • Man Made Calamity

There are several instances where cars are damaged due to riots, strikes, malicious activities, theft or burglary. Having a comprehensive policy offers your car protection against all such things and ensures that you can sleep well at night.

  • Add-Ons

Some of us want additional features and benefits or security for our vehicles. In such cases, opting for a rider or an add-on is the most sensible option. But you can only avail riders with a comprehensive policy.

Though there are two types of policies available at your disposal, a comprehensive car insurance policy offers a lot of value for the premium that you pay. And thus, is the recommended one as well. You can compare car insurance policies from various top insurers on Coverfox.com. So don’t wait yourself an ideall car insurance plan today.

Categories: Automotive

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