Car Insurance is the best method to alleviate financial strain. Under the T&Cs of your policy, all types of auto insurance provide coverage for financial losses resulting from any tragic events involving your vehicle.
When your vehicle is involved in an accident, you should concentrate on recovering from the trauma rather than the financial repercussions. Maintaining adequate auto insurance coverage for such incidents is advisable.
The various forms of protection offered are known as insurance coverage. In addition to the base coverage provided by the policy, you can choose from various additional protection options.
Here are the various varieties of automobile insurance available in India:
- Third-Party Liability Coverage
You will obtain the following benefits with this type of automobile insurance:
- The cost of restoring or replacing a damaged third-party vehicle.
- Hospitalisation and third-party care expenses
- Third-party liabilities deriving from their demise
- To operate a motor vehicle on public roads, the Motor Vehicles Act mandates third-party liability coverage. The amount guaranteed must be sufficient to cover all of your out-of-pocket expenses and be proportional to the driving conditions.
- Coverage for Collision Damage or Own Damage (OD)
If you purchase new car insurance for OD, repairing your damaged vehicle will be covered. The premium for collision coverage is determined by factoring in the vehicle’s age and its Insured Declared Value.
When a collision coverage insurance claim is lodged, the IDV minus accumulated depreciation determines the maximum amount payable under the policy. If you financed your vehicle, collision coverage is required.
- If collision coverage is included in your insurance policy, the insurance company will pay for your vehicle’s repairs after an accident.
- In certain instances, the restoration cost will exceed the vehicle’s current market value. The insurance company will pay the automobile’s current market value in such circumstances.
- The collision coverage should be purchased based on the age of your automobile. When purchasing insurance for a brand-new vehicle, collision coverage must be included.*
- Personal Accident Cover
Personal accident auto insurance is used when you want to safeguard yourself, i.e., the owner-driver of the vehicle, by selecting reimbursement for medical expenses incurred after an accident.
You can include additional coverage in addition to the required liability insurance to mitigate certain risk factors.
- Personal injury protection will cover all costs associated with the accident.
- Personal injury protection will cover the medical expenses of the driver and other passengers.
- The insurance company will cover the medical expenses regardless of fault.*
- Zero Depreciation Automobile Insurance
This form of coverage is typically an add-on to car insurance policies in India. Assume your vehicle has sustained damage, and you must repair the affected components. For claim resolution, the insurer will account for the depreciated value of the parts. A zero-depreciation auto insurance policy will ensure that you receive the total amount of your claim without accounting for depreciation.*
Thus, when taking insurance, pay no heed to car insurance prices and buy the best one in the market.
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* Standard T&C Apply
Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.