Read about what is motor vehicle insurance & types of vehicle insurance plans
One of the most important aspects of owning a vehicle is to have motor insurance coverage for it. There are various types of motor insurance policies offered in India, and staying informed about them can help you make the right purchase. This article covers the topics of what is motor insurance and its offered types.
Motor insurance is a type of policy coverage that helps protect the owner of the vehicle against financial losses that may occur due to accidental damage or theft of the insured vehicle. In India, having a third-party motor insurance policy for vehicles is mandatory by law, and you can purchase vehicle insurance online or offline. In order to enjoy the coverage of motor insurance, you have to pay a period-wise premium for the policy and renew it at the end of every term. Now that you have gone through the topic of what is motor insurance, let’s take an in-depth look at the types and varieties of motor insurance available in India.
Now coming to the types of motor insurance coverage offered in India, here are the two choices that you can pick from:
This type of insurance coverage is the most basic one out of the two. It covers damages or losses caused to third-party property, vehicle or individual by the insured vehicle. Having at least third-party insurance is necessary to drive on Indian roads.
The coverage range of this insurance policy is quite extensive. Besides including third-party liability coverage, it also protects against damages or losses caused to the insured vehicle and some other optional coverage choices.
This type of motor insurance policy is applicable for private cars only and doesn’t include commercially used four-wheelers.
This type of motor insurance policy is applicable for two-wheeler vehicles like a bike or a scooter.
This type of motor insurance is only for vehicles that are used for commercial purposes, like buses, cabs, trucks, auto-rickshaws, ambulances, etc. It helps to cover losses or damages caused to or by a commercial vehicle and its driver/owner.
The third-party motor insurance policy is cheap but quite limited in benefits. On the other hand, a comprehensive motor insurance policy covers third-party liabilities and losses or damages caused to your vehicle. It also offers the choice to select extra damage protection (add-ons) as per preference in exchange for an increased premium. Hence, a comprehensive motor insurance policy is a much better investment in terms of overall protection for its price.
These are all the basic details you need to know about motor insurance and its types in India. You can easily search for and buy third-party or comprehensive vehicle insurance online or offline.